Standards of Conduct in the House of Lords

Appendix C

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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