The Government's Constitutional Reform Programme - Constitution Committee Contents


Examination of Witnesses (Questions 53-89)

Rt Hon Nick Clegg MP

13 OCTOBER 2010

  Q53  The Chairman: Good morning everyone and good morning Deputy Prime Minister. Thank you very much for coming to the Constitution Committee. As you know, we hope that this is going to be the beginning of a regular series of conversations between the Committee and you, because, as you said in your memorandum to us, for which many thanks, you have described your programme for political renewal as ambitious. We are very grateful for the memorandum setting that out. We are particularly pleased that you were able to come on a Wednesday morning, which as we all know is Prime Minister's Questions day. We recognise that you will have to leave at about ten to 12. We have a rather ambitious timetable in that time, so if we may we will plunge straight into some questions that we wanted to raise with you. We would like to look at both the strategy and the principles behind your programme of constitutional renewal, touch on the two Bills that you have already introduced into the House of Commons and spend some time on the House of Lords as well. If I may, I would like to start straight away. As I said earlier, noble Lords will have read your helpful memorandum to us that you sent earlier. What do you identify as the principles of your constitutional reform proposals and how do you respond to those criticisms that have been made in the other House that they are piecemeal—the word "cherrypicking" has been used—and have been introduced to Parliament without adequate preparation and prior consultation?

Nick Clegg: First, thank you very much for allowing me to appear before you today. I think everybody agrees that these issues are of great significance, so the experience and insight of this Committee will be invaluable to us as we further develop and refine, and we hope strengthen and improve, the proposals that we have published already and are set to publish in the future. So I am really very grateful for this opportunity. You asked for a description of the principles of our approach. I think the starting point is quite simply that there is a gap between the nature of British society and the character, design and architecture of the political institutions that are supposed to represent and reflect that society. What do I mean by that? I hope that everybody would accept that some very significant social, demographic, economic and cultural changes have occurred in recent decades that have made British society less diffident and deferential in its character, its politics much less rigid and class-based than it used to be—the old tribal affiliations and loyalties of community and family with party have dissolved and broken down. The spread of information technology has empowered people to gain access to information that previously was not available in the way that it is now. People have become used to exercising their rights as consumers in a much more demanding way than has previously been the case. As citizens, there is a much greater emphasis on empowerment, on control and on people being able to shape their own choices in their own way. Those very profound cultural and social changes in our view must be reflected in the way in which the political institutions that represent, reflect and seek to impact on society are organised. I hope most people would accept that there are features of our present political arrangements that are secretive or centralised, in which people do not necessarily feel that their voices or views are properly represented. We have arrangements in our electoral system that, with other forces, have led to a growing trend of mass abstention, with people in a sense absenting themselves from the political process altogether. The 2001 and 2005 general elections were the first times that more people did not vote than voted for the winning party. We have inadequate and still unreformed party funding arrangements. The House of Lords debate has been raging for a century or so now. It is not directly accountable to people. In other words, there is a gap. Now, that gap of course was dramatised in a manner that I do not think anyone could have expected at the time of the expenses scandal. That, of course, had its genesis in some very particular and specific issues to do with the administration of expenses by MPs, but I think it reveals something wider and bigger, which is a loss of public faith in the way in which our political institutions reflect and express their views and articulate them in a representative democracy. What we are seeking to do, very simply, is to start trying to close that gap. That is why there is an emphasis in everything that we are proposing on greater accountability in the manner in which we conduct ourselves and the way in which politics is conducted, greater legitimacy in the political institutions that seek to represent people, and breaking up excessive concentrations of power and secrecy. Whether it is the power of recall, whether it is fixed-term Parliaments, whether it is giving people the right to have a say over the electoral system, whether it is pushing forward with House of Lords reform, whether it is reforming party funding, all those things together represent a significant step towards greater legitimacy, greater accountability and greater openness in the way in which our politics is conducted. Do they individually or collectively represent a perfectly formed constitutional moment? No, I accept that there is always messiness on the edges of these things, and it is worth emphasising, on many of the proposals that we are making, yes they are controversial and yes they are big, but many of them also go very much with the grain of debates that have been raging for a very long time. All three parties committed themselves unambiguously to House of Lords reform at the last general election. It is a debate we have been having for 100 years. We will return later during the Session to the details and so on, but there can be no doubt about the continuity of that strand of thinking. Two of the three main parties at the last general election advocated fixed-term Parliaments. Again, that is something that has been debated for a long time. The Alternative Vote system, which I hope people will have the ability to express their views on in a referendum, was first debated and voted on over 100 years ago in Westminster. So there is a mix of revolution and evolution, of change and stability, of change and continuity. It might not look entirely neat if you try to map it out in a pristine way, but collectively it represents a very significant step towards closing that dangerous gap between the changes in society and the lack of reform or changes in our political institutions. Sorry I have gone on a little bit at length, but I think it was important.

  The Chairman: No, that is very helpful. The argument that you are making is that the evolution of these issues enables you to introduce things fairly rapidly.

  Q54  Lord Rodgers of Quarry Bank: Deputy Prime Minister, in the first paragraph of your paper you refer to the transfer of power from the Executive to Parliament and from Parliament to the people. But is it not the case that this is no such movement at all? If we have fixed-term Parliaments, power will move away, because there will be less access for voters. For example, since 1945 I think we have had 18 general elections. If we have a five-year Government, we shall have 14 over the same period, so people will have much less opportunity. Is it not a rather cosy arrangement? It is very interesting that there will be no Second Reading vote against. Members of Parliament will now feel a degree of security for five years. Is that desirable and is it not rather contrary to the argument? As a very short supplement, if I may, one of the other possibilities—I am really asking whether it was considered—is given that we have moved very much to a presidential system, when you change your Prime Minister you almost change your President. Would it not have been possible, or did you discuss it at that time, to have a general election after a change of Prime Minister, as we had, for example, when Mr Brown succeeded, and it has happened on many other occasions? Would it not be better now to have general elections once the Prime Minister has been changed?

  Nick Clegg: Let us go back, if I may just for a minute, to first principles on this Fixed-term Parliaments Bill. What are we trying to do? We are seeking to remove from the Executive and from the Prime Minister of the day the ability to play politics with the timing of the election. That is the basic motive of this. Governments have been distorted, paralysed, hobbled and handicapped over and over again by the capricious manner in which Prime Ministers have played cat and mouse with the British people and with the Legislature about when elections should be held. We saw it most recently in 2007. That is debilitating to good government; it destroys good government. It is humiliating to the Legislature and the Parliament. It makes a complete mockery of the relationship between the Legislature and the Executive. And in public policy terms, it certainly prevents difficult, long-term decisions being taken, because everything is refracted through that short-term objective. We are trying to take that power away. This would be the first Prime Minister who deprived himself of that margin of manoeuvre, that freedom of movement. If you count up over the last several decades, by my count there were 17 elections, but I defer to you if there were 18 elections. By the way, I note that I think about 10 of those Parliaments since the war were over four years in length. Of the last five Parliaments, three have been five-year Parliaments. It is a combination of providing a length of time, five years, with which people are familiar and which allows Governments at least four of those five years—maybe not the last year—to get on and govern properly for the benefit of the country, together with taking away from the Executive the ability to capriciously time the election for nothing more than political self-interest. That provides a degree of stability and transparency to the political system which outweighs the self-evident fact that if you did that over a period of time, people would be voting less frequently. How can I put this? I do not think there is a scientific link between frequency of elections and quality of Government. I do not want to create a diplomatic incident here, but if one were to look at other democratic systems elsewhere in Europe where we have had a rash of elections, often many of them in one calendar year, it is not necessarily an indication of an improved quality of governance. Do I think that changing the Prime Minister should automatically lead to general election? I hope the arrangements that we will put in place will make it nigh impossible for a Government to trigger a general election for its own purposes. It could go through the farce of trying to engineer a no confidence vote in itself, but I think it would be rumbled by the people pretty quickly if it sought to do that. It really is up to Parliament to decide. If it felt that it did not have confidence and it wanted to allow the people to have a say at the point at which a new person became Prime Minister, it is entirely free to do so under the existing no confidence provisions, which we have never advocated touching in any way.

  Q55  Lord Norton of Louth: Just on your written submission and the basic principles, you say that the basic goal of the changes is to restore faith in politics. I am wondering about the link between that and the proposals themselves, not least in terms of the evidence base for them. To what extent is it your hope that this will have that effect, or is there an evidence base to the proposals that are brought forward?

  Nick Clegg: The evidence base is of course as much one of judgment as it is of empirical data. Yes, it is an unambiguous judgment on our part that reducing the power of the Executive, seeking to boost the power of the Legislature, making the Legislatures more directly accountable to people, making the manner in which political parties operate and fund themselves more transparent, giving people the right to recall or sack their MPs if they have been shown to commit any serious wrongdoing, collectively introduces the mechanisms by which people can exercise greater control over politicians. Whether people will then do that, whether they will, in a sense, take up that invitation—well, horses and water spring to mind. We can only do so much to make sure that our politics is reformed in a way that would allow a revitalisation of political faith in politics, which I think has significantly withered on the vine in recent years.

  Q56  Lord Norton of Louth: I just wondered how much the fixed-term Parliaments proposal fits into the list that you just gave. You left that out.

  Nick Clegg: I think in terms also of diminishing the prerogative of the Executive, which is of course what fixed-term Parliaments do.

  Q57  Lord Norton of Louth: Indeed, I am just thinking, in relation to restoring faith in politics, whether that would have an impact on the people out there, which is essentially what you are getting at.

  Nick Clegg: My own view, and of course there is always a degree of subjective judgment about this, is that people were in a state of despair in 2007, when they did not know when the general election was going to be. There was this constant shadow boxing—is he going to call it or is he not going to call it? Everyone knew that the whole country was on tenterhooks for one person to decide, for reasons that were self-evidently, unsurprisingly and, if you like, understandably driven by political self-interest. I take it as a given that that erodes public trust in politics

  Q58  Lord Norton of Louth: Was there not at the time a desire for an election? What is now being said is that you will not have one and you will have to wait the fixed term.

  Nick Clegg: I accept of course there are circumstances in which the desire for a general election, to press the reset button, is so great that something needs to happen. That is why the Bill is very clear that there are two mechanisms to do that. One is the conventional, existing power of no confidence by a simple majority and then—no doubt we will debate this—a period of 14 days during which a Government can be re-formed and confirmed by Parliament or a general election is triggered. The other is a very high threshold, set at two-thirds—we initially proposed 55 per cent, as you will no doubt remember—for a power of dissolution. We have set it very high precisely to avoid any suspicion that any Government of the day could basically fall on its own sword in order to bring us back to square one and have elections timed to suit the Executive of the day. If that pressure builds up, there are mechanisms that would allow that to unfold.

  The Chairman: I think your answer to Lord Norton's first question suggested that you were proceeding on the basis of judgment rather than evidence. That brings us to the whole question of public consultation on these measures and pre-legislative scrutiny. I think a number of members of the Committee have questions they would like to put to you on that.

  Q59  Lord Pannick: Deputy Prime Minister, the House of Commons Political and Constitutional Reform Committee strongly criticised you for not publishing the Bill in draft for pre-legislative scrutiny.

  Nick Clegg: Which one?

  Lord Pannick: The Fixed-term Parliaments Bill. How does that promote public confidence in Parliament? How does it promote accountability and legitimacy—the aims that you refer to—not to publish in draft? What is the rush?

  Nick Clegg: First, we did look at alternative mechanisms by which we could make a commitment to holding the election in 2015 and then having a more leisurely approach towards legislating to establish that on a continuing principle. For various reasons, we were given the strong advice that this would create a limbo situation with, in effect, a non-binding, non-statutory commitment to the 2015 date and that it was better to proceed towards legislation straight off. So we did look at alternatives and we consulted widely with all the institutions that have a constitutional role in all this. It was very strongly felt in various quarters that we needed to proceed with legislation and there was not an interim step that would allow us to create that space. So it was not for want of trying to schedule it differently. Secondly, the principle of fixed-term Parliaments has been argued and made over a very long period. It was argued and made formally by two of the three main parties that stood at the last general election. The outgoing Prime Minister, Gordon Brown, made the case in favour of fixed-term Parliaments in very trenchant terms in his latter stages as Prime Minister. So it is not a new issue of principle; it has not been sprung on people new. Of course, what matters now is the degree of scrutiny that it is subject to as the legislation passes through both Houses. On that we are very clear. We want to make sure that it is subject to the greatest possible scrutiny, which it rightly deserves. I think that balance between the constraints that we are operating under, the precedents set by the extensive arguments about the virtues of fixed-term Parliaments, the overt political case made by the majority of political parties, including in their manifestoes at the last general election, combined with the opportunities we have in both Houses to subject to scrutiny as it passes the Bill through at various stages, I would like to believe that all those things put together are reasonable and are certainly not evading proper scrutiny and review.

  Q60  Lord Pannick: What are these constraints that require urgency? The coalition has a very healthy majority. It believes that there should be a five-year Parliament, unless you all fall out. There is simply no urgency.

  Nick Clegg: Dare I say, I feel that people are slightly pointing in different directions on this. Part of the reason why we are being urged to get on with it is that people say, "Well, we don't trust you. You can say that you're going to have an election in 2015, but you might fall out or you might decide that you want to time the election for your own purposes. I slightly feel that we are in a cleft stick on this one. I think broadly speaking there is a fairly strong cross-party consensus in favour of fixed-term Parliaments, if one looks at the response from the Committee on Constitutional Affairs in the House of Commons and so on, notwithstanding the reservations about process. If we were to say that we were going to informally commit to having a fixed-term Parliament but not introduce it in a belt-and-braces fashion until later, I would probably be sitting here answering questions such as, "Well, hang on a minute, aren't you going to end up breaking the very rules that you are piously declaring lie behind the Fixed-term Parliaments Bill?" We are trying to strike the right balance, which is to get on with it and to show that we believe in this for ourselves as much as for any succeeding Governments, and to create the space and time necessary for the scrutiny that you quite rightly said a measure like this deserves.

  Q61  Lord Goldsmith: Could I press a little further on that? The question is why you should not make a declaration—not necessarily an informal declaration of the intention to remain for five years; it could be a very strong and formal declaration by the Prime Minister. As you have quite rightly explained, the present system is such that if the Prime Minister chooses not to declare an election for five years, unless there is a vote of no confidence that is what is going to happen. I do not see why, if the Prime Minister had said that in a formal way—if he had gone back on it, that would have said a lot about his credibility, I suppose—that would not have been sufficient to give the coalition the security it needs, while allowing adequate time for the people and Parliament to debate these fundamental changes about fixed-term Parliaments.

  Nick Clegg: It is partly because one is making claims on not just the prerogatives and powers of the Prime Minister, but also the role of the Monarch in deciding when elections are triggered. One is treading on relatively sensitive ground for that reason among others. Therefore, an informal understanding would leave a great deal of ambiguity on issues of constitutional significance. The judgment that was reached, which I think was the right one, was that it was better to try and get this right in a binding fashion, not evading scrutiny in any way, given that, as I said, there is a fairly strong case already made politically that this is a desirable measure. If no party had advocated fixed-term Parliaments in the past, if the previous Prime Minister had not expressed his strong support for it, if we had not been debating it for decades, if it was not common practice in many other democracies, I accept that it would have been so out of the blue that one would have needed to find different ways of starting to walk before one runs on this. But I think the case has been made more solidly than your question implies. One is by definition making claims and alterations to the prerogatives that exist not just for the Prime Minister but also for other very important parts of our constitution. It was therefore felt better to do this formally through the front door rather than informally through the back door.

  Q62  Baroness Falkner of Margravine: Would not a declaration of intent, rather than the route that you have chosen, which is to put a Bill on the table, have also resulted in endless speculation, as we saw last night, about whether it will stick or not, creating an element of instability? Was your aim not only to lead by example, but also to build some stability into a new system that people were not familiar with?

  Nick Clegg: As I say, we really looked at this. I will be very open with you. It was my original intention that that would be the better way to proceed. Firstly, we did not entirely appreciate the knock-on effects on different parts of our constitutional arrangements, which created understandable nervousness that one is then consigning everybody, not just this Government and this Prime Minister, but everybody else involved, into a slightly ambiguous territory, which made many people feel uncomfortable. There are also the political realities that I mentioned earlier, which is that had we done that, there is no doubt in my mind that we would now be accused of trying to have our cake and eat it, of talking about fixed-term Parliaments but not seeking to make it binding on ourselves. But that was not the major consideration. The major consideration was the need, given the high degree of political support for this measure, to do it properly and thoroughly rather than doing it through a halfway house first.

  Q63  Lord Hart of Chilton: It became apparent that a five-year fixed term would result in a clash with elections to the devolved institutions in 2015 and then every 20 years thereafter. Mark Harper stated in the Second Reading debate that the Government intends to continue its dialogue with the devolved Assemblies. How is this dialogue getting on?

  Nick Clegg: Well, I have recently been in Edinburgh, Cardiff and Belfast and met with all the leaders of the devolved Administrations and with the Presiding Officers in two of the devolved Assemblies. It is worth pointing out, incidentally, that that coincidence of devolved elections and a general election in 2015 could very well have occurred anyway, regardless of who was in power now and whether they had fixed-term Parliaments. If the new Government, let us say of a different political composition and not tabling a Fixed-term Parliaments Bill, had none the less decided to run its full term, you would have had that coincidence. In a strange kind of way, it sounds as though I am trying to eke virtue out of a difficult situation, but the good thing is that we are identifying this up front. In other circumstances you would have this coincidence, but in a much more unplanned way. We have now identified that there is this coincidence. I accept as a matter of principle that there is a material difference between the coincidence of two elections to two Legislatures that produce two Executives and the coincidence, for instance, of local or devolved elections with a simple yes or no referendum question. I am sure we will come to that separately during our deliberations. The former is more complex. The latter is more straightforward, because the yes/no answer to a referendum question is a much more separable issue. There is undoubtedly some potential for overlap and some degree of confusion if one has two elections for Legislatures on the same day. We are consulting people and trying to see whether there are workable or desirable alternatives. The clash or duplication of elections was kind of baked in the cake one way or another anyway; it is just a question of whether people think that the issue is big enough that we need to take remedial action. As you say, under the current arrangements it would occur every 20 years. The discussions are still ongoing on whether that is an acceptable coincidence or one that needs to be avoided.

  Q64  Lord Hart of Chilton: When do you think these discussions are going to reach a conclusion?

  Nick Clegg: I hope fairly soon, for the simple reason that I do not think that it would be right to ask people to vote next May in the devolved elections without knowing, bluntly, what they are voting for. So I think we need to get on with this. As I say, over the last few weeks I have visited all the devolved Assemblies and discussions are ongoing. There are no easy answers, as there rarely are on these things. Each proposed solution that I have looked at presents all sorts of dilemmas of its own, but we are actively looking at these different options.

  The Chairman: As you say, we will come back to the immediate question of the referendums clash when we come in a few minutes to the Parliamentary Voting Systems and Constituencies Bill.

  Q65  Lord Norton of Louth: We have dealt with the principle of fixed-term Parliaments, but there is also the issue of the actual term itself. You have opted for five years rather than four and have said that that flows with some of the founding texts of our unwritten constitution. I wonder what those texts are. I also wonder about the principle, relating to what you were saying earlier. Could you not argue that people might have more faith in Parliament if they had an opportunity to vote for it every four years rather than every five years?

  Nick Clegg: Again, you are going to find this exasperating if you want empirical evidence, but these are not scientific matters. I find it very difficult, prima facie, to assume that four is better than five. I defer to you, because I suspect that you know the text much better than I do, but if one looks at the 1911 Act it is certainly written into that. I accept there are slightly overblown claims about the Septennial Act, but let us not go down that route. As I say, I think there is a pattern of five-year Parliaments, at least recently. Certainly, since the war there has been a pattern of Parliaments lasting. As I said, I think 10 of the 17 or 18 since the war have lasted more than four years. Of the last five Parliaments, I think three of them have been for five years. The last Parliament was five years. I think there is another consideration that we have touched on in the context of the fixed-term Parliament discussions earlier, which is that, given the tendency for Governments to be somewhat hamstrung and paralysed for a considerable period before a general election is held—at least a year or so before a general election, matters are overshadowed by pure politicking rather than good governance—in terms of good governance you are in practice talking about a Government that can get on and do difficult things, and heaven knows I know about doing difficult things this week above all other weeks, for about four years. Do I think four years is an unreasonable period for Government to get on and govern in the national interest before it starts turning its mind to the little matter of whether it can get re-elected? I think that is a reasonable balance to strike. If one goes to four years, one is talking about a three-year period in which Governments are not blighted by their own sense of mortality, if I can put it like that. That strikes me as a rather short period. For all of those factors, we have tended to settle on five years.

  Q66  Lord Norton of Louth: I can see the argument about balance—governance against popular desire to vote more frequently—but would there not be a case, coming back to the earlier point, for consulting on this to see what people think? There may be a preference to return to the Triennial Act. Should you not consult and see what people think would be the optimum length?

  Nick Clegg: As I said, during the passage of the Bill I am sure this issue will come up. It has already come up a great deal. People will no doubt marshal their own evidence to support one claim or another. I would equally question, empirically if you like, that people are straining at the bit to vote in elections more frequently. I accept the political reality that there are circumstances that have nothing to do with timing or with three, four or five years, but are to do with events, mishaps, catastrophes, recessions or scandals, when you get pressure and people want a line drawn under a Government and a chance to start again. If that reaches a critical point, there are provisions in the Bill that would allow the Legislature—not the Executive, crucially—to give expression to that pressure. That is the right way round. I have never met anyone who says to me, "Well, I kind of like voting every four years." I am being facetious, but I think it is more driven by whether circumstances are such that people feel that the Government has lost its way to such a degree that it has lost public confidence. If that is the case, then their representatives, MPs in the House of Commons, can trigger a vote of no confidence.

  The Chairman: Did you want to ask a further question about no confidence votes, Lord Norton? I think Lord Hart felt his question had been answered.

  Lord Hart of Chilton: No, I think it was.

  Q67  Lord Norton of Louth: This follows on from what you were just saying, because there is a provision in the Bill to trigger a vote of no confidence and a potential dissolution motion. On the no confidence provision, how confident are you on the encompassing nature of the way the Bill is drawn. There is a difference between a vote of no confidence, a vote of confidence that is lost and, say, the Government saying on the Second Reading of the European Communities Bill, "If we lose this, the Government goes." Would those cases be encompassed by the Bill?

  Nick Clegg: I think this is a really important area and it is a classic example of where we could perhaps work away at the Bill if necessary, to strengthen or clarify it. We have tried to provide clarity in the Bill. I do not have the verbatim words, but we have referred to the passing of a no confidence motion. The implication of your question is what that means for motions that are not carried and therefore express a lack of confidence. I start from the point that we want to try to provide as much clarity as possible about what a no confidence motion and process looks like, but equally it is for the House and the Speaker to make his and its own determinations about what they consider to be a motion of no confidence. In a sense, we have provided the tramlines in this draft Bill, but at the same time, I clearly want to retain as much flexibility and autonomy as possible for the House to decide for itself how it then interprets that. That is exactly the kind of thing that now needs to come out in the scrutiny that the Bill will receive.

  Q68  Lord Norton of Louth: The other aspect to it is the linking provision in terms of a dissolution motion. Do you think the Bill is sufficiently well drawn to prevent circumstances, which you occasionally get elsewhere, where a Government might try to engineer its own demise in order to trigger an election?

  Nick Clegg: So far I have found it quite difficult to think of means by which you could legislate to stop Governments committing harakiri. The purpose of the Bill is to prevent or diminish the ability of the Government of the day to play politics with the timing of the election. My own view, in terms of practical politics, is that if a Government sought to do that it would be so transparent and so self-evidently grubby and self-serving that it would not do that Government any good at all. The final court of opinion, of course, is what the electorate would do, and I think they would be very unforgiving. The German case is often cited. I think it was Chancellor Schröder; I cannot remember what year it was. I am not sure of the exact parallels. Can you exclude the theoretical possibility? I think it is pretty difficult to do that. Can you exclude it in practical political terms? I think you pretty well nigh can.

  Q69  Lord Norton of Louth: I agree. The Bill is drawn to prevent the German case. You have put that hurdle in, but you moved from 55 per cent to two-thirds. What was the rationale for that?

  Nick Clegg: The rationale was that at first, quite understandably, there was a lot of anxiety and suspicion that this would allow this coalition Government to determine the timing of the election. I was very clear that we needed to remove that beyond any doubt. Two-thirds is a threshold used in other Legislatures. I think I am right in saying that it is in the Scotland Act, which was passed by the previous Government when they established fixed terms for the Scottish Parliament. So it is not without precedent, which I thought was useful. People will be familiar with it. I freely admit that if one wants to play the mind game of imagining circumstances in which a Parliament would collectively decide, across party lines, it would self-evidently be rare. I can just imagine circumstances in which there is such a sense of crisis in the country, or such a haemorrhaging of legitimacy in the whole political class—the expenses scandal, plus, plus—that there is a collective decision that we cannot carry on with this and we have got to start again. It is for those kinds of exceptional circumstances that that provision has been drafted.

  The Chairman: Thank you. I think we are going to have another opportunity for the Committee to meet Mark Harper, specifically on this Bill, in a few weeks. I hope we will be able to return to some of the points that Committee members have raised. I think we should now turn to the other Bill, the Parliamentary Voting system and Constituencies Bill.

  Q70  Lord Crickhowell: Deputy Prime Minister, I return again to the question of consultation and pre-legislative scrutiny. The Commons Political and Constitutional Reform Committee last week produced one of the most critical reports by a Select Committee that I have read in a very long time. It centred on this point. Its criticism was not so much about whether you were discussing something that other people had been discussing for a very long time, or whether the general principle was right, but that successful legislation, particularly constitutional legislation, is dependent on detail. The Committee identified a string of points on detail that it suggested had not been adequately thought through and consulted on. We have had a report from the Electoral Commission saying that it needs six months to prepare the electorate for the referendum vote, but now it seems wildly improbable, particularly in the light of the issues raised by the Select Committee, that a Bill can be got through this House and completed without significant changes by 5 November. That raises one issue. The committee also identified, in the Welsh context, a situation that as far as I know—and I take an interest in the affairs of Wales—has not been consulted about or discussed, and of which people are hardly aware. I refer to the fact that the Bill will reduce the number of Welsh Members of Parliament by more than a quarter, while the reduction in the rest of the country is just over 7 per cent. That will have devastating consequences for the nature of the Welsh seats, and for whether they connect in any way with historical or social groupings. Apparently you overlooked a rather important requirement that you will have to change. At the moment, the seats have to coincide with the seats for the Welsh Assembly. That change certainly will need making. The Committee report suggests that you will have to change the 10 per cent discretion on size and geography and, among other crucial points, it states that if you reduce the number of Members of Parliament without reducing the payroll vote, you are increasing the power of the Executive and weakening the power of Parliament. These are all fundamental constitutional issues. Why are we not having the kind of widespread consultation that the Select Committee in the other place thinks is highly desirable?

  Nick Clegg: I will take each of the detailed points quickly and in turn. As you rightly said, they are all important. I will start with the fundamental issue of pre-legislative scrutiny. I am very open about this. If we want to introduce these changes before the next general election, we must move fairly rapidly in order not only to hold a referendum but also to allow the boundary commissioners to do their work according to the timetable set in the Bill. They are due to report in 2013, in time for parties to select their candidates so that we can then hold the elections of 2015 on redrawn boundaries, and possibly, if the referendum is successful, on the alternative vote as well. So there was retrospective time pressure that was very difficult to escape from. Secondly, we have been very keen to address all of these detailed points—and I will come to all of them—in the discussions on the Floor of the House. Because of the constitutional significance of the Bill, it is being read in Committee on the Floor of the House and it has received—as I saw myself yesterday, and with the votes that were held—very substantial scrutiny. I will take the points that you mentioned in reverse order. On the issue of the number of Ministers, the suggestion is that if you cut the number of MPs from 652 to 600, which is a cut of just shy of 7.7 per cent, you should have a 7.7 per cent, or at least a commensurate, cut in the number of people who are on the government payroll. There is a strong argument that says you must look at this and adapt the number of people who are on the government payroll so that you do not get a lopsided imbalance between those on the payroll and those holding them to account. I totally accept that. It is something that I am very keen to work on and it is an issue for the next Government, not for this one, so we have a bit of time. There are lots of different ways to do it and we are open to suggestions and amendments. The issue of principle is one that we do not contest in any way. You mentioned 10 per cent. I think that you were referring to the fact that the boundary changes will be made with a variation of 5 per cent on either side of the ideal quota. By the way, it is worth remembering that 218 of the existing 650 seats already meet that quota. Already, more than a third of the seats are comfortably within it. Sometimes people make breathless allegations about the boundary review, as if it is an act of constitutional vandalism. Already, a third of MPs are comfortably within the quota. Many of the allegations are somewhat synthetic. None the less, we consulted with the boundary commissioners in great detail and they were unambiguous. We set the figure at 5 per cent because they said: "If you set it at any less than 5 per cent, we will not be able to use ward boundaries as the building blocks for our boundary review, and if you want us to do it by"—I forget the exact date—"October or December 2013, we must be able to use wards as the continued building blocks of constituency boundaries. We can do that to within 5 per cent on either side of the threshold". So this was not capricious. We have spent a lot of time talking to boundary commissioners and they have confirmed that in their view it is doable. On the issue of Welsh representation, we are moving to decouple the link between the number of MPs and the number of Assembly seats. We have already recognised that problem and are moving to decouple the link, because clearly it would be unacceptable to retain it if there was a significant drop. The issue in Wales, and across the board, comes down to one of principle. Do people think that the number of votes in the constituency impacts on the value of those votes? I think that they do. It was the Chartists who first campaigned for equal value for equal votes. It was a great progressive cause. The argument was that it was wrong that in the mandate given to people who are representing the public, somehow your vote is worth more in one place than it is in others. I do not have a good head for numbers, but the variations are striking and wholly unacceptable. A constituency on one side of London may have roughly 60,000 electors and another one just a few miles away may have 85,000. In Wales, because of history and all sorts of reasons, there is a particularly marked overrepresentation. Wales has 40 seats at the moment. One either works on the basis of the principle of trying to equalise constituencies so that, broadly speaking, votes are valued in the same way across the whole of the United Kingdom, or one does not. I admit that that is a principle that one either agrees with or does not, but if one does, it is very difficult to escape the conclusion that there will need to be changes in the number of Westminster seats for Wales. You asked finally about the about the Electoral Commission. We would not have proceeded with this—it would have been deeply irresponsible—if we had felt that we would be putting the Electoral Commission in an impossible position by asking it to deliver a referendum in May. It has indicated that if we proceed as we hope to, it is not a statutory rule that Royal Assent must be received six months before the referendum, and it can start giving guidance to returning officers and others who will be responsible for the conduct of the referendum from about six months before the referendum will be held. The Commission is confident that that is manageable. As you know, it has issued a report saying that the combination is possible. There are risks—we are trying to mitigate them and are working with the Commission to do so—but it is manageable.

  Q71  Lord Crickhowell: I will not pursue the points in detail, but I have one final question about the rush. You have explained that you want to get this through, and say a change to equal constituencies is desirable. You say a third will not be affected, but I will read the comments of the Select Committee of the other place. "The review the Government is proposing will mean that every prospective parliamentary candidate, current Members of the House included, will not know until 18 months before a general election in 2015 what the boundaries will be of the constituency they intend to contest, or if indeed they will have a constituency to contest". In every constituency they will have to reconstitute the associations and organisations and create them afresh. Surely that is hardly the way to close the gap between society and political institutions, which at the beginning of this meeting you said was your objective.

  Nick Clegg: It is precisely for that reason that we are proceeding backwards. We accept that anyone who has stood for Parliament, myself included, knows that the longer the period of time that one has to work in the community that one seeks to represent, the better. We have tried to make this happen in a way that is both manageable and proper, but also as quickly as possible, precisely to make sure that the 18-month period referred to by the Committee's report is not shortened any further. I refer to the 18-month period from the point at which the candidates know the final shape of their constituencies for the general election. That is exactly the case I am trying to make. There are real constraints at the other end of this process, if one works backwards from 2015, which not unreasonably have led us to the conclusion that we must move forward. I will make one further point. Yes, boundaries will be redrawn, and no doubt in some places—although it is up to the boundary commissioners to decide this—some of the changes will be extensive. But in many other parts of our nations it will be a not wholly unfamiliar process for MPs such as myself who are constantly subjected to boundary changes. We have a system that we are not altering in any way. Independent boundary commissioners arrive at their own independent views. The shrill accusations of gerrymandering are wide of the mark. The Government are not going to do this; it is the independent boundary commissioners. All that we are asking is this. At the moment, the boundary commissioners have a series of criteria that they need to meet in their work. The criteria are listed in legislation. They must have regard to community relations, to community cohesion, to history, to the character of an area, to the disruption that might be caused and to an equal status for votes up and down the country. All that we are doing is taking one criterion that already exists and saying that all the other criteria need to be pursued with a view to meeting that. Sometimes people forget that the criterion already exists: we are just giving it a degree of primacy that presently it does not enjoy in the work of the boundary commissioners.

  Q72  Lord Goldsmith: Deputy Prime Minister, I will ask you one more question about the timing of the referendum. Given the timing issues that we have in this committee, I will be specific in my question. You are well aware not just of the issues that the Electoral Commission has raised, but also of the concerns expressed by the Scottish First Minister, the Welsh Assembly and others about the coincidence of having elections there on the same day as the referendum. Given that your fundamental aim is to increase the confidence of people in politics and in the political process, although others say that it is possible for people to keep the two issues separate and still a vote on the same day, why take the risk of having the votes on the same day? Have you considered moving the referendum vote to another day, and if you have, what is the reason for not doing so?

  Nick Clegg: My first point may sound glib, but it is not intended to be. Whatever date you pick, someone will disagree with it and claim that it is a breach of faith. Some people just do not like this referendum. They will come up with a thousand and one reasons why the date or something else is wrong. There is only a limited amount that one can do to counter the infinite reasons that people will give for saying that it should not occur. On the issue of the date, I fundamentally disagree with the premise that it is somehow wrong to ask people to tick a box to say yes or no to a very straightforward question when they are already being invited to vote. Roughly half of the people who were elected to the House of Commons in the 2010 general election were elected at a time when there were local elections on the same day. Over time, we constantly have referenda and elections that coincide. I will turn it round and ask people what possible justification there is for spending around £30 million of additional public money on holding the referendum on another date when my experience is that many people would accept the convenience of being asked to take a judgment on this wholly separate and discrete issue at a time when they are voting in local elections. Some 84 per cent of people in England, and everybody in the devolved nations, will be entitled to vote next May anyway. Of course I understand the politics of this: it is a great way for people to score points and catch headlines. But the issue of substance is whether there is something fundamentally wrong in principle in asking people to do two things rather than one. For the life of me I have never understood that. To put it bluntly, it is disrespectful to people to assume that it is too complex to ask them to vote on a referendum on the same day as they are being invited to vote anyway.

  Lord Goldsmith: It was the Electoral Commission that first raised this question. You may be right to point the political finger at others.

  Nick Clegg: To be fair to the Electoral Commission, it previously said that there was a case for coincidence, but that it should be handled and prepared properly, and judged on a case-by-case basis. When the Commission looked into the evidence from around the world for its own report, it changed its position. Initially it was more antagonistic. As you well know, there was a very unhappy experience in the Scottish elections in 2007.

  The Chairman: The incidence of spoilt ballot papers increased by 6.5 per cent.

  Nick Clegg: Yes, but as the subsequent research and analysis by the Electoral Commission and others showed, the particular problem there was the extraordinary complexity of the ballot papers for the local elections, which were physically very difficult to handle and extraordinarily difficult to understand. What we are proposing to do in May is wholly different. It will be a very short question with a simple yes or no box. We have looked very carefully at the report produced after the difficulties in 2007, and none of the difficulties identified—this has been confirmed by the Electoral Commission—prevails for the coincidence that we hope will occur in May.

  Q73  Lord Pannick: Deputy Prime Minister, you emphasise the need to focus on principle and substance. Is there any principled justification for confining the referendum question to a choice between first past the post and the alternative vote, and for giving people no say on whether they might prefer a system of proportional representation?

  Nick Clegg: We could have a separate debate on the virtues of electoral systems going by this or that acronym. I have always been open about the fact that there are other systems for which one can make a compelling case. But at the end of the day it is important in a referendum to present people with a clear choice, rather than with a multiple choice question. That is what we are seeking to do. All the experience is that referendums are best conducted, and most easily understood by people, if there is a simple choice between two alternatives that requires a simple yes or no answer. It does not at all detract from the wider case for other forms of electoral reform. I lead a party that has long campaigned for a different variant of electoral reform. For all sorts of obvious reasons, the alternative vote is the alternative that was arrived at in negotiations between the two coalition parties, and indeed was the one option presented by the Labour Party in its manifesto at the last general election. So there is an obvious head of steam in favour of that being the alternative presented to people. You asked about the issue of principle. Can I call this a principle? It is certainly a pragmatic principle that in a referendum it is best if one keeps the question simple, clean and not susceptible to—

  Q74  Lord Pannick: What about two questions? "Do you want change?" and "If so, do you prefer A or B?".

  Nick Clegg: My view on that variant is that the first question, "Do you want change?", is self-evidently implicit in the answer to the second. I suppose that it would accommodate people who say, "Yes, I want a change, but not this particular change". But then they would end up voting against the proposed change in any event, so you would arrive at the same outcome.

  The Chairman: Thank you. We turn now to House of Lords reform.

  Q75  Lord Irvine of Lairg: Deputy Prime Minister, today the House of Lords is essentially an appointed legislative Chamber. Do you agree that as such it brings a unique mix of expertise and experience to the revision and critical evaluation of proposed legislation?

  Nick Clegg: Undoubtedly it does, but it lacks democratic authority. While one might seek to try to separate those issues, as I sought to explain earlier, we now inhabit a political and social culture that is less tolerant of experience and insight, considerable though clearly it is, without greater legitimacy. The bar of legitimacy has been set much higher than it was 100 years ago when this was first being debated.

  Q76  Lord Irvine of Lairg: I will focus on what we agree about. You accept that in today's appointed House of Lords there are Members with vast experience—as businessmen, farmers, lawyers, accountants, academics, scientists, faith leaders, doctors, nurses, trade unionists, former civil servants, former Cabinet Ministers, local government leaders, former heads of the armed services, to name but some. I appreciate that you have a point about democratic legitimacy, but do you agree that the House of Lords, as is, brings huge collective experience to the benefit of Parliament as a whole?

  Nick Clegg: That is undoubtedly the case. The question is, how can one make sure that that experience, expertise and wisdom is made available to decision-makers in government and in legislatures if arrangements were to change? I do not accept the premise that if we were to proceed with reform of the House of Lords, as committed to by all political parties, somehow all of that experience would disappear like a puff of smoke. Good government is only ever good if it draws on wisdom and experience. I also note, pragmatically, that this is one reason why in the transition arrangements for reforming the House of Lords, it is essential to keep that experience and expertise, so there must be generous and thoughtful transition arrangements which will ensure that the experience is not dispensed with overnight and that there will be perhaps long periods of time during which it will still exist during the handover between one configuration and the next.

  Q77  Lord Irvine of Lairg: I follow that, but let us suppose that the House of Lords were to become wholly or mainly elected. Do you accept that it would then cease to provide that unique benefit to Parliament derived from its collective experience?

  Nick Clegg: Actually I do not accept the premise that if someone is elected, their experience, wisdom, insight and intelligence are somehow, as night follows day, of a different quality to those of others. Of course I accept that if one is elected, there are political pressures that can lead to short-termism and decision-making that is understandably driven through the prism of the need to retain public support. Where we probably start to part company, gently and in as civilised a manner as possible, is over the idea that something is either this or that—that all experience and wisdom will be lost from how a Government or legislature acts if one includes more directly elected legitimacy, or that those who are directly elected somehow are not capable of either drawing on their experience or possessing it in their own right. Dare I say that there are also Members of the House of Commons who in their own right have considerable experience in law, the military services and academia?

  Q78  Lord Shaw of Northstead: Is the revising character of this Chamber its primary purpose at the moment, or are there other important features that are required? If one looks at the wisdom that is already in the revising Chamber, can one believe that most Members of the House of Lords, or people in similar positions, would be prepared to stand for elections? Is it not inevitable that almost certainly future elected Members of the House of Lords will be people who have failed to get into the House of Commons?

  Nick Clegg: When one looks at bicameral systems around the world, of which there are many examples, there is only one other example in the developed world of a second Chamber that is wholly appointed. That is in Canada. All other bicameral systems are either wholly or largely elected. All bicameral systems struggle with the dilemma of making sure that the second Chamber does not become an echo chamber for the politics of the lower House. There are a number of ways in which bicameral systems over a long period of time have insulated and insured themselves against that. It can depend on the term of office or the timing and manner of elections. The mandate can be very different. If one looks at the Bundestag and the Bundesrat, or the Senate and Congress, there are discernible, visible and easily understood differences of mandate and character in bicameral systems that we should seek not just to emulate but to retain, because that is one of the great virtues of the division of labour between the two Chambers at the moment.

  Q79  Lord Shaw of Northstead: Does that mean that the electoral system adopted in the House of Commons would be repeated in elections to the House of Lords, or will there be another system? Will the same voting system be used?

  Nick Clegg: We committed in the coalition agreement for this Government to advocate elections to the House of Lords based on a proportional system, such that the Chamber is proportionally reflective of British society. Interestingly, those people in the Conservative Party who are otherwise antagonistic to proportional electoral systems for the House of Commons have argued that the Commons, because of the constituency link and the creation of the Executive, is in a different position and that therefore having different electoral systems make sense. Again, that is consistent with bicameral systems elsewhere in the world. There are different electoral systems and different timings of mandates, and very quickly the public come to regard the two groups of elected politicians not as inferior or superior but genuinely as of different quality and character, which is what we have already. Looking at bicameral systems elsewhere, I genuinely think we can retain this with a wholly or largely elected upper House.

  Q80  Lord Shaw of Northstead: Do you feel that our duties should go wider than they do at present, when we are largely a revising chamber?

  Nick Clegg: The functions of restraining, reviewing and scrutinising the Government of the day, and acting as a counterbalance and a check on the work of the House of Commons, in broad terms are what we should seek to retain. But we should add greater legitimacy and democratic authority.

  Q81  Lord Pannick: Deputy Prime Minister, do you accept that Cross-Benchers play a valuable and distinctive role in the House of Lords? If you do, will you assure us that when your proposals are brought forward, they will preserve a place for Cross-Benchers in the House of Lords?

  Nick Clegg: Self-evidently, Cross-Benchers play a very valuable role in the present arrangements. Clearly, if one were to move to a wholly elected House of Lords, that assurance would not be possible. It would be possible only if one had a largely elected House of Lords. That is precisely the kind of debate that I hope the Joint Committee that will be established to scrutinise the Bill when we publish it will be able to explore in considerable detail.

  Q82  Lord Pannick: Do you have a view on this that you are willing to share with us?

  Nick Clegg: My view, as a starting principle, is that a wholly elected House is the best way forward. I am only repeating something that I have said for a very long time. But I am equally aware that if one looks at the debate on House of Lords reform over not just decades but a century, one reason why progress often has not been made—the chair is more familiar than I am, for example, with the events of 1998, when reform was promised and we were told that it would lead seamlessly to the next, bigger reform—is that we make the best the enemy of the good. While I have my own principled views that democratic legitimacy is best secured through a wholly elected House of Lords, equally I understand that people have different points of view that must be listened to and debated. I do not want to create ideological rigidity. I want to see reform proceed as much as possible on a cross-party and consensual basis. That is my personal view, but I realise that idealism often bumps up against pragmatism—in political reform as in other areas of life.

  Q83  Baroness Falkner of Margravine: I will stay with the issue of independent Peers, the Cross-Benchers. In the current Committee that you have established with the three political parties looking at House of Lords reform, there is no presence of independent Peers. Earlier you mentioned the word "generous". Why did you not feel that it would be right to include them in these conversations from the outset? My other question refers to what was discussed earlier about expertise in the House of Lords. Do you accept that in the changes you envisage, there would be a greater impetus on the political parties to have a broad array of skills and experience behind them, and that a proportional system would facilitate the task, so that it would be possible to have a diverse House of Lords in terms of expertise and skills through the list system if we had a reformed Chamber?

  Nick Clegg: On the first point, the feeling was that the key thing to do was to get a Bill out there and make sure that it was subject to the fullest degree of scrutiny, including of course by Cross-Benchers. It is not for the Government to say this, but my hope is that a Joint Committee will be established that will take the time that it believes is necessary to subject the Bill to examination. The Bill gets the ball rolling. Given that all three political parties at the last general election unambiguously supported Lords reform, it seemed only right that in order to get the ball rolling, the parties should agree on what Bill they felt was appropriate, and then other parties—in the different sense of the word, and including Cross-Benchers—would have unalloyed rights of scrutiny in the Joint Committee. That is exactly how we will proceed. I hope that that strikes the right balance between fulfilling the clear political momentum on House of Lords reform from all political parties, getting a product that we can look at and wrestle with rather than repeating the familiar pattern of talking about it in abstract year after year, and making sure that it is subject to meaningful scrutiny. I hope that we have struck the right balance. If we were to proceed, as I hope we will, towards a House of Lords wholly or largely elected on a proportional system, one could envisage the unfamiliar prospect that the House of Lords would be considered to be more representative of contemporary Britain than the House of Commons. It would be a magnificent act of leapfrogging by one House over the other.

  Q84  Lord Irvine of Lairg: Let me be the first to acknowledge the magnificence of that, Deputy Prime Minister. In the questions I put to you earlier, I was not suggesting that the House of Lords was a unique repository of experience and wisdom. On the contrary, I accept that the House of Commons has these qualities in very substantial measure. That brings me to a key question. What value to the existing legislative process would an elected House of Lords add to the elected House of Commons?

  Nick Clegg: It would mean that the function of restraint, overview and scrutiny would enjoy a degree of democratic authority that currently it does not. It would reinforce rather than weaken, diminish or undermine the extraordinarily important role that the House of Lords already deploys.

  Q85  Lord Irvine of Lairg: Why not simply have a unicameral system and spare the country in these dire times the cost of two elected Chambers?

  Nick Clegg: People are used to a bicameral system. They like the idea, as you rightly implied and we agreed, that in the House of Lords one has a House that is not subject or susceptible to the same venal day-to-day political pressures as people at the other end of corridor, and that is able to provide a degree of perspective, restraint and scrutiny that otherwise would not exist.

  Q86  Lord Irvine of Lairg: What realistic assurance can you offer that an elected House of Lords would be able to fulfil the functions that you imply are provided less well by the existing elected House of Commons?

  Nick Clegg: Let me be clear: I am describing the fundamental virtue of a bicameral system—I do not believe in unicameral representative democracy—which is that it introduces additional checks and balances to the way in which the Executive behaves, and the way in which lower Houses behave. This is a desirable thing in the democracy. I start from the premise that a bicameral system is a good thing for those reasons. Our bicameral system would be significantly strengthened if the second Chamber, the upper House, had the democratic authority that it lacks. In answer to the earlier question, the devil is in the detail. It is so important in terms of mandate, electoral system, period of office and so on that one has something that is utterly distinct from the lower House. If what we end up with is just a poor cousin of the House of Commons, that would be a woeful outcome. It is not beyond our wit, and it is something that is common to bicameral systems elsewhere in the developed world, to avoid that danger.

  Q87  Lord Irvine of Lairg: The Chairman rightly has her eyes on the hands of the clock. I will ask just one short question. If there is great hostility in the House of Lords to the legislation that is eventually brought forward, and it is voted down by the House of Lords, will the coalition Government contemplate using the Parliament Act to get it through?

  Nick Clegg: It is far too premature to speculate about the use of a blunderbuss—

  Q88  Lord Irvine of Lairg: Why?

  Nick Clegg: Because we are at the early stages of a debate, of which this is part. I hope that the debate will become richer and deeper over time. Scrutiny from the Joint Committee will be extraordinarily important. We should all recognise that this is something that the country has been debating for around a century. The last general election was unique in that it was the first time that all political parties were unambiguous in stating that House of Lords reform should proceed. I hope that we can proceed on as consensual a basis as possible, rather than immediately speculating on the use of blunderbuss alternatives.

  Q89  Lord Irvine of Lairg: But if consensus is not achieved, are you ruling out the use of the Parliament Act?

  Nick Clegg: The Bill has not even been produced and the arguments are still at an early stage. I am an optimist—I have to be in my line of work—and I genuinely believe that the arguments that we in the coalition Government are deploying are strong. I hope that today I have given some intimation that we want to pursue those arguments reasonably and not in a dogmatic or rigid fashion, and that therefore over time we will arrive at greater agreement than many people often assume.

  The Chairman: Deputy Prime Minister, we can assure you that the debate will become, in your words, richer and deeper. We thank you very much for your time. You have covered an enormous amount of ground and given us a great deal of help. We look forward to future conversations of this kind with you.

  Nick Clegg: Thank you very much.




 
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