Second Report from the Select Committee
on
Procedure of the House
Tuesday, the 24th April 1990
By The Select Committee on Procedure of the House
Ordered to Report:-
Declaration of Pecuniary Interest
1. The Committee have concluded their annual review of procedural
difficulties in the preceding session to which the attention of the
House should be called, by considering at two meetings the issue of
Declaration of Pecuniary Interest.
2. Rule (xiv) of the Rules of Debate in the Companion (p.44)
is as follows:
It is a long-standing custom of the House that Lords speak always
on their personal honour. It follows from this that if a Lord decides
that it is proper for him to take part in a debate on a subject in
which he has a direct pecuniary interest, he should declare it.
Subject to this, and to the guidance to members or employees
of public Boards (the Addison Rules) set out below, there is no reason
why a Lord with an interest to declare should not take part in debate.
It is however considered undesirable for a Lord to advocate, promote
or oppose in the House any Bill or subordinate legislation, in or
for which he is or has been acting or concerned for any pecuniary
fee or reward.
3. A series of incidents last session suggested that the last
sentence of this guidance is widely misunderstood (H.L.Deb. 3rd April
1989 cols. 964 and 972, H.L.Deb. 2nd May 1989 cols. 58 and 61, H.L.Deb.
11th October 1989 cols. 403-406). The point at issue in each case was
the meaning of "acting or concerned for any pecuniary fee or reward"
and whether it applies to a general salary or retainer or only to a
specific pecuniary fee or reward in a particular case, and whether "concerned"
is to be construed broadly or narrowly. From an examination of the history
of the matter, it appears that the rule was originally aimed at two
potential abuses, namely a Lord gaining pecuniary advantage from his
membership of Parliament or using it to further his professional career,
and a person outside Parliament gaining unfair advantage through a fortuitous
connection with a member of the House. It
was not intended to prohibit professionally qualified Lords from speaking
on matters connected with their profession, which would deprive the
House of the views of members with a direct knowledge of the subjects
under discussion.
4. In the light of these recent experiences, the Committee consider
that the rule as currently phrased fails to express the original intentions
of the House, and accordingly they have agreed a new form of guidance
which they hope will express the conventions of the House more clearly.
5. The Committee recommend the following new guidance on the
Declaration of Interest, for eventual inclusion in the Companion:
"It is a long-standing custom of the House that Lords speak
always on their personal honour. The decision whether it is proper
to take part in a debate or a vote in which a Lord has a personal
interest therefore rests with the Lord himself; but it is considered
undesirable for a Lord to advocate, promote or oppose in the House
any Bill or subordinate legislation if he is acting or has acted personally
in direct connection with it for a specific fee or reward, or to vote
on a Private Bill in which he has a direct pecuniary interest. Subject
to these exceptions and to the guidance to Members or Employees of
Public Boards (the "Addison Rules") a Lord is free to take part in
a debate or a vote in which he has a personal interest.
If a Lord has a direct pecuniary interest in a subject on which
he speaks, he should declare it, and he should also declare any kind
of interest of which his audience should be aware in order to form
a balanced judgement of his argument. Such interests may be indirect
or non-pecuniary, for example the interest of a relation or friend,
hospitality or gifts received, trusteeship, or unpaid membership of
an interested organisation, and they may include past and future interests.
This rule also applies where a Lord is using his influence as a member
of the House in communication with a Minister, Government Department,
local authority or other public body outside the House. If a Lord
wishes to vote on a subject in which he has an interest that is direct,
pecuniary and shared by few others, it is better that he should first
have spoken in the debate so that his interest may be openly declared.
On certain occasions such as Starred Questions and the various
stages of a bill following Second Reading, it may be for the convenience
of the House that Lords should not take up time by repeating declarations
of interest but a Lord should make a declaration whenever he is in
doubt. The Clerks at the Table are available to advise on the interpretation
of this guidance in a case of uncertainty."
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