Monday, 13 November 2017

The Humpty Dumpty approach to nuclear diplomatic relations


Written Evidence to the Nuclear Safeguards Bill scrutiny committee

 by Dr David Lowry

senior research fellow

Institute for Resource and Security Studies

Cambridge

 Massachusetts

 USA

UK contact 07740503518

 

Introduction

I listened with increasing degrees of disbelief to the ‘evidence’ given in oral sessions to your scrutiny committee on 31 October.

While it is very difficult to attribute motivation, I could not decide whether witnesses were deliberately presenting the committee with disinformation, or, despite their job titles and apparent experience in the field, were ignorant of the very issues they came before you to discuss. Either way, the outcome was a series of self-serving sets of answers, which were in many parts distorted, sometimes by omitting relevant information linked to the answer, inaccurate, misleading or down right factually wrong.

Below I have submitted my own evidence on issues I think the committee needs to discuss in order to appreciate the subtle, nuanced political, diplomatic and technical implications of this  bill, but should you invite me to give oral testimony, I will endeavour to point out some of the more egregious inaccuracies contained in the oral replies to which I refer above, along with  more accurate answers.

Collectively, it is the worst series of witnesses’ answers I have ever experienced in over 35 years monitoring many dozens of select committee hearings.

Official government position

In the Committee stage deliberations of the Nuclear Safeguards Bill, energy minister Richard Harrington set out the framework and rationale for the Government policy position on leaving Euratom and replacing the Euratom safeguarding presence in the UK, telling MPs on the committee on 2 November:

“We have emphasised our continued commitment to the IAEA and to international standards for nuclear safeguards and non-proliferation. Nuclear safeguards are reporting and verification processes by which states demonstrate to the international community that civil nuclear material is not diverted into military or weapons programmes. Under the Euratom treaty, the civil nuclear material and facilities in member states are subject to nuclear safeguards measures conducted by Euratom, which also provides reporting on member state’s safeguards to the IAEA. That three-way link allows global oversight of nuclear safeguards.

It is clear that the existence of a UK nuclear safeguards regime is a prerequisite for the movement of certain nuclear materials called special fissile materials in and out of the UK. It underpins our international commitment to the IAEA and our nuclear co-operation agreements…..Nuclear safeguards include reporting on civil nuclear material holdings and development plans, inspection of nuclear facilities by international inspectors, and monitoring through equipment, such as cameras and recording equipment, placed in the facilities.”

“… We have already made great progress in our work to secure continuity for our nuclear industry by establishing long-term arrangements to secure nuclear safeguards. As my right hon. Friend the Secretary of State set out in September—this is very important—our intention is for the new domestic regime

“to exceed…the standard that the international community would require from the UK”

and is expected to be

“as comprehensive and robust as that currently provided by Euratom.”


It will be run by the ONR, which already has regulatory responsibility for nuclear safety and nuclear security. Therefore, quite apart from the Euratom/Europe issue, it fits comfortably under that umbrella, although I accept the former—when I say “quite apart from,” I am not making any value judgment. If we must have a separate safeguards regime, as we do, the ONR is the natural body for it to fit within.

“The ONR is in the process of developing an expanded safeguards function. For example, the ONR will recruit a tranche of inspectors, with further recruitment to come—I am sure that will be discussed further, because it was mentioned in the evidence given both to this Committee on Tuesday and to the Business, Energy and Industrial Strategy Committee yesterday. The ONR will also build additional institutional capacity and develop the necessary IT systems. ONR experts have been in discussions with the IAEA on the technical aspects of the new system. We will also be agreeing a new voluntary offer agreement and additional protocol with the IAEA, and those negotiations have already begun. I know that hon. Members from all parties will agree that having a civil nuclear safeguards regime for the UK is of paramount importance.”

“The Bill amends the Energy Act 2013 to replace the ONR’s existing nuclear safeguards purpose, which I have explained, with a new nuclear safeguards purpose definition. The ONR will regulate the new nuclear safeguards regime using its existing functions and powers. However, the Bill creates new powers, so that we can put in place through regulations the detail of the domestic safeguards regime. Some examples of that would be detail about accounting, reporting, control and inspection arrangements.

“Finally, the Bill creates a new but limited power to create regulations to amend the Nuclear Safeguards and Electricity (Finance) Act 1978, and the Nuclear ​Safeguards Act 2000 and the Nuclear Safeguards (Notification) Regulations 2004. That power allows the references in all that legislation to international agreements, which have been mentioned before, to be updated once new international agreements have been reached.

“I look forward to considering all these measures in depth with hon. Members over the next two weeks. I want to make it clear again that although we are leaving Euratom, we support Euratom and we will want to see continuity of co-operation and standards, because we have had a successful relationship with the Euratom community for more than 40 years and we want to maintain that successful civil nuclear co-operation.”

 

In response, Labour front bench energy spokesperson, Dr alan Whitehead commented and asked:

“I thank the Minister for his comprehensive, though not entirely conclusive, explanation of where we are, so far as international agreements and parliamentary scrutiny are concerned. I would appreciate it if he could give a brief thought to the question of the point at which the IAEA will conclude that we have transposed the Euratom responsibilities to the ONR. Will that be when we have passed the enabling legislation, or when the process is completed and can therefore be presented in a box, as it were, to the IAEA saying all is done? That itself is likely to slow up the negotiation process with the IAEA, which I appreciate the Minister said he considers will be complete by exit day.”

To which the minister replied:

“I thank the hon. Gentleman for that valid point, which requires both a simple and a complex answer. The simple answer is that there is a sequence, and the agreements have to be ready but will not come into force until after we leave Euratom. The IAEA has a ratification procedure, which I intend to come to. The agreements have to be ratified by its board. The bilateral agreements referred to have to be ratified by the Parliaments of each country involved. I am not led to believe that that will be a problem, because I am pleased to say that these negotiations are more in the form of constructive discussions than one side wanting one thing and another side wanting another. What I am about to say will hopefully answer the hon. Gentleman’s questions. If not, I am sure that he will say so, and I am happy to meet him any time to discuss that.

“I understand that hon. Members are concerned to ensure that there is parliamentary scrutiny. I have covered that, but I must stress that the measures in the amendment would be a significant departure from the usual position on the ratification of treaties, and I do not consider it appropriate in the context of the Bill. As Members will be aware, the UK Government are responsible for negotiating and signing international treaties involving the UK and always have been. The ratification of international treaties is covered in legislation, as the Constitutional Reform and Governance Act 2010 provides a ratification process that requires treaties to be laid before Parliament prior to ratification, except in exceptional circumstances—I do not know what the exceptional circumstances are, but I imagine they would be a war or something like that.

“The Government have the power to conclude international treaties under their prerogative powers. Of course, that cannot automatically change domestic law or rights and cannot make major changes to the UK’s constitutional arrangements without parliamentary authority. That remains the case for international ​agreements relating to safeguards that are currently under negotiation—for example, the nuclear co-operation agreements currently being negotiated with the US, Canada, Japan and Australia, and the new safeguards agreements with the IAEA. Parliament will therefore have the opportunity to consider those agreements before they come into force.

We have been open and honest with Parliament about ongoing negotiations and will continue to do so. The intention is for those agreements to be presented to Parliament before ratification, ahead of the UK’s withdrawal from Euratom, and they will come into force immediately upon our exit.”

He later added, apparently by way of further elaboration I and explanation, in an incredibly convoluted passage:

“…let us say there was a Secretary of State who was misguided or mad enough to say, “Actually, I am not going to do this because I do not want a nuclear safeguards regime. I want this country to be like North Korea”—or wherever. I think North Korea is the only country without a nuclear safeguards regime. If the Secretary of State desired to take that approach, there would be a lot more tools available for not having a nuclear safeguards regime than the interpretation of “may” or “must”. I am not making light of the point—it is dead serious.

No one has suggested any possibility that we should not have a nuclear safeguards regime, and wrong interpretation of the “may” or “must” point would mean that someone—a Secretary of State or a Government—had decided to do that. If a Government had decided to do that—I know it would not be the Opposition or anyone in any normal form of politics—such a change of policy would not just rely on an interpretation of “may” or “must”.”


 

However, in practice, that is exactly what is being proposed: an un-safeguards regime, just like North Korea, that, in the spirit of Alice Through the Looking Glass, masquerades as a “safeguards” regime: as Humpty Dumpty put it scornfully, but appositely:

“When I use a word it means just what I choose it to mean — neither more nor less.”

The international community is certain to come to a very different interpretation. I explain why below.

 

The Humpty Dumpty strategy- Safeguards outside Euratom: who will watch the watchers?

 

Government minister Lord Prior of Brampton  told peers in the Euratom debate on 20 July 2017:

 

  “….It is clear that we need continuity and must avoid any break in our safeguards regime.    The UK meets our safeguards standards through our membership of Euratom. The Government’s aim is clear: we want to maintain our mutually successful civil nuclear co-operation with Euratom. We can do so while establishing our own nuclear safeguards regime, using the body that already regulates nuclear security and safety: the Office for Nuclear Regulation. To do that, we need primary legislation.

 

That is why the Queen’s Speech on 21 June included our intention to take powers to set up a domestic nuclear safeguards regime, in partnership with the Office for Nuclear Regulation, to enable us to continue to meet international safeguards and nuclear non-proliferation obligations.

 

The Government’s primary aim throughout these negotiations will be to maintain our mutually successful civil nuclear co-operation with Euratom and the rest of the world. We are strong supporters of Euratom and that is not going to change. “has the power it needs for a domestic safeguards regime…. We are preparing a domestic nuclear safeguards Bill; we are opening negotiations with the EU; we are talking to third countries about bilateral agreements; finally, of course, we are talking to the International Atomic Energy Agency. My officials have met with IAEA officials in Vienna and had constructive conversations about a new voluntary offer agreement, to replace the current one that we have by virtue of our Euratom membership.”

 

“Secondly, we are keen to ensure that there is minimal disruption to civil nuclear trade and co-operation with non-European partners. To this end, the Government are negotiating with the United States, Canada, Australia and Japan so that the UK has appropriate nuclear co-operation agreements in place. Government officials have met with the Canadian Government and the Canadian regulators; we have also written to them at ministerial level. Canada is as keen as we are to reach a new agreement on bilateral terms. That is equally true of the USA, Japan and Australia, with all of whom we have started constructive discussions.”

 


 

On July 13 this year, the UK Government position paper on “Nuclear materials and safeguards issues,” included the key proposal that the UK will:

 

 “take responsibility for meeting the UK’s safeguards obligations, as agree with IAEA (International Atomic Energy Agency).”

 


 

The UK’s chief Brexit negotiator, David Davis MP, commented on the future relations with Euratom in an interview with BBC an "arbitration arrangement" would have to be agreed. (“Brexit: UK could be 'associate' of EU nuclear body,” BBC on line, 13 July; http://www.bbc.co.uk/news/uk-politics-40593588)  asserting

 

 Mr Davis told the BBC's political editor Laura Kuenssberg:

 

"Whether we have an association agreement with the European Union or we have something independent under the International Atomic Energy Authority (sic) , we'll provide the sorts of safeguards that we have today at least."

 

Mr Davis stressed such an agreement would not be governed by the European Court of Justice but by an arrangement to be agreed between the UK and the EU. It remains to  be seen if such a proposal is acceptable to EU v chief negotiator, Commissioner Michael Barnier.

 

As well as the nuclear question, it was also "quite likely" that a new "arbitration arrangement" would be needed to govern the UK's trading relationship with the EU after Brexit, he said.

 

 

The UK government had earlier explained they intend UK nuclear security regulator, the Office for Nuclear Regulation (ONR) to take over from the independent  safeguards inspectors from Euratom, to ‘self-police’ the British nuclear industry against military misuse.

 

 

This is a highly contendable and certainly contentious proposal: just imagine if Iran or North Korea proposed to do that!

 

 

It should also be noted that even under the Euratom safeguards regime the UK  has withdrawn fissile nuclear materials, including plutonium, from safeguards on at least 600 occasions since the U.K’s trilateral safeguards treaty with Euratom and IAEA came into force in 1978 (http://www.hse.gov.uk/nuclear/safeguards/withdrawals.htm & http://www.onr.org.uk/safeguards/withdrawals.htm)

 


The European Commission’s own  Position paper transmitted to EU27 on nuclear materials and safeguard equipment (Euratom) released on 23 June 2017 (https://ec.europa.eu/commission/publications/position-paper-transmitted-eu27-nuclear-materials-and-safeguard-equipment-euratom_en)  states the European commission  position on post-Brexit safeguards application in the UK as follows:

 

“The United Kingdom is a member of the International Atomic Energy Agency ("IAEA") and bound by international conventions to which it is a party in its own right. From the withdrawal date, the United Kingdom will have sole responsibility for ensuring its compliance with international obligations arising therefrom. 

 

Given that the Treaty will cease to apply in the United Kingdom, it appears appropriate that the Withdrawal Agreement set out arrangements for the transfer of the ownership of special fissile materials and Community property located in the United Kingdom used for the purposes of providing safeguards to the United Kingdom, respecting the Community's obligations under international agreements.

 

The Withdrawal Agreement should also provide that the United Kingdom assume all rights and obligations associated with the ownership of materials or property transferred and should regulate other questions related to material and property under the Treaty, in particular safeguards obligation.”

 

Conclusion

In  my view, the witness for the Office for Nuclear Regulation, Dr Golshan, should have addressed the implications of the “withdrawal” clause 14  in the extant trilateral  involuntary “voluntary”  nuclear safeguards agreement between the UK- IAEA and Euratom when deliberating the mechanics of replacing this agreement with a new one, under the self-policing of the ONR.

The UK nuclear regulator is going to be given unprecedented responsibility for policing a diplomatically contentious new arrangement, which will increase suspicion among member states of the 1968 Nuclear Non Proliferation Treaty ( for which the UK , as a co-drafter of the treaty text, is one of three depositary states)  – which ministers pray-in-aid whenever they discuss the rationale for a UK nuclear safeguards system. However, ministers routinely cherry-pick those parts of the NPT that suite their purposes: but the NPT is an integrated diplomatic agreement, with its articles all relevant and related. Cherry-picking is both diplomatically unwise, as it normalises abrogation for other signatory nations,  and undermines the very treaty for which the UK is supposed to act as a protective depositary state!

The UK is already in very bad diplomatic odour with many dozen NPT member states – the treaty has 191 signatories - for its fifty-year abject failure to abide by the NPT article 6 requirement to:

“pursue negotiations in good faith on effective measures relating to cessation of the nuclear arms race at an early date and to nuclear disarmament.”

The proposed arrangements for a new self-policed “safeguards” regime for the UK will undoubtedly add to the bad image of the UK in the wider international community as a state that abrogate its international treaty commitments.

This diplomatic dimension has been totally overlooked by the ONR and utterly ignored by ministerial evidence to this committee: the consequences further down the road will be predictably dire.

There is time to avoid this outcome; but minister must be prevailed upon to change their currently untenable negotiating stance. ONR has a key, proactive and robust role to play in doing so. I hope for the future credibility of British diplomatic reputation- which has suffered serious damage in recent weeks due to the multiple  failures of the Foreign Secretary -  ONR steps up to the plate and intervenes.

 

Dr David Lowry

Stoneleigh, Surrey

13 November 2017

Sunday, 12 November 2017

Brown surely knew Saddam did not have WMDs when he funded the invasion of Iraq in 2003


Letter  to The Observer newspaper:

Former Labour Prime Minister and Chancellor Gordon Brown is either being disingenuous –or, worse, showed an almost criminal lack of curiosity as a senior member of Tony Blair’s Cabinet - if he really believes it was the alleged withholding by the Bush Administration of a “secret intelligence report” that showed Iraq did not possess WMDs prior to the ill- fated invasion in March  2003. (“Bush  knew Iraq  had no WMDs, but kept it from Blair, says Brown” 5 November 2017; https://www.theguardian.com/world/2017/nov/05/iraq-weapons-mass-destruction-america-misled-britain-gordon-brown)
 
Jack Straw, Blair's Foreign Secretary at the time of the invasion, recalling the build up to the invasion of Iraq, wrote (at page 22) of his memorandum to the Chilcot Inquiry in to the Iraq debacle:

."..the Iraqi régime had for four years following the Gulf War, and not withstanding the best efforts of UNSCOM Inspectors and intelligence agencies, been successful in wholly concealing an extensive biological weapons programme (including anthrax bacillus, smallpox virus, VX nerve agent). All that Iraq had admitted was “small scale, defensive” research. It was not until the lucky break of the defection of Saddam Hussein’s son-in-law (Lieutenant-General Hussein Kamel) that even the fact of this programme was revealed." (http://www.iraqinquiry.org.uk/media/43119/jackstraw-memorandum.pdf)

 
He cites Hussein Kamel in support of what he claims was a well-founded belief - shared by all but the then Russian intelligence services - that Iraq possessed WMDs in 2002/03.

 But Mr Straw and Tony Blair, knew Saddam had no WMD at least six years before he colluded with George Bush to illegally invade Iraq. This was because what was reported originally in US magazine Newsweek in its first issue of March 2003 edition.

But it then oddly, but conveniently for warmongers, disappeared from the pre-invasion public debate.

Hussein Kamel, the former director of Iraq's Military Industrialisation Corporation - which was in charge of Iraq's weapons programmes - defected to Jordan in 1995 together with his brother Colonel Saddam Kamel. They took with them crates of documents revealing past weapons programmes and provided these to UNSCOM, the United Nations WMD inspection team.

Hussein and Saddam Kamel ill-advisedly agreed to return to Iraq, where they were assassinated on February 23 1996 by agents of their father -in-law, led by 'Chemical Ali', himself later executed.


Fifteen days after Hussein Kamel left Iraq he was interviewed by UNSCOM director, Rolf Ekeus, International Atomic Energy Agency deputy director and head of the inspections team in Iraq Professor Maurizio Zifferero and Nikita Smidovich, a Russian diplomat who led UNSCOM's ballistic missile team.

In the transcript of the interview seen by British intelligence, Kamel states categorically: "I ordered destruction of all chemical weapons. All weapons - biological, chemical, missile, nuclear - were destroyed." Kamel specifically discusses the significance of anthrax, which he portrays as the "main focus" of the biological programme.


Smidovich asks Kamel: "Were weapons and agents destroyed?" Kamel replies: "Nothing remained." He also describes the elimination of prohibited missiles. "Not a single missile left, but they had blueprints and molds for production. All missiles were destroyed

Former Labour MP Llew Smith, who strongly opposed the invasion - for whom I worked at the time - also raised these matters in an unreported parliamentary debate on Iraq held in June 2003, barely a month after Bush proclaimed "mission accomplished" in Iraq.


Smith pointed out that "we continue to be told that war with Iraq was necessary because Iraq had those weapons of mass destruction which were a threat to the world and because it was willing to use them and could deliver them within 45 minutes, yet we have still not found those weapons."

In fact Smith was the first MP to raise doubts over the now infamous 45-minute claim.
As long ago as October 2002 - just a month after the government's "distorted dossier" on Iraq's fantasy WMD was published - Smith challenged Blair on the basis of the dossier's assertion that Saddam was determined to retain the weapons of mass destruction that the dossier discusses.

 And Smith asked him if he would "set out the technical basis for the assertion ... that chemical or biological weapons could be deployed within 45 minutes of an order to do so." Blair disingenuously and shamefacedly lied: "These points reflect specific intelligence information."

Blair had a full copy of the text of the Kamel interview before the invasion. Did he share it with his Cabinet?. (The transcript is available at
:http://www.casi.org.uk/info/unscom950822.pdf).Brown seems to claim not. I wonder.

Friday, 10 November 2017

Nuclear Safeguards in UK and Brexit


This article was published on line at nuClear News (No.101 November 2017) on 9 November ( http://www.no2nuclearpower.org.uk/nuclearnews/NuClearNewsNo101.pdf). I think it merits wider readership, so have posted it here:

The government cannot guarantee Britain will have enough nuclear inspectors when it leaves the EU. The Office of Nuclear Regulation has recruited four new safeguards inspectors but says it needs more time to fill the specialised roles. Nuclear minister Richard Harrington said there was "plenty of time" to recruit the staff needed. But he stopped short of offering a firm guarantee. The government has stressed that nuclear safeguards - the processes by which the UK shows its civil nuclear material is not diverted into weapons programmes - are different from nuclear safety - the prevention of nuclear accidents. Mr Harrington said the UK was committed to leaving Euratom in March 2019. (1)

Industry figures have warned about significant disruption to energy production in the UK if there is not a new inspection regime ready to go to, to replace the one currently overseen by Euratom.

Dr Mina Golshan gave evidence on behalf of the Office for Nuclear Regulation to the Safeguards Bill Committee on 31st October 2017. (2) Dr Golshan completely ducked addressing the most important aspect of the bill, according to nuclear security expert Dr David Lowry. It is- not the operational technicalities which concern Lowry, but the diplomatic acceptability of a nation state asserting that it will replace an independent international safeguards verification regime with a self verified regime, albeit one that intends to be populated by the appropriate expertise from a current recruitment drive.

Dr Golshan also overlooked the fact the current trilateral safeguards agreement (UK-EURATOM-IAEA) has an opt out of safeguards application to fissile material, under its article 14, if the Government so decides; and this has actually been done over 600 times since September 1978, when the trilateral safeguards agreement came into force. Foreign states regard this as UK 'do-it-yourself' nuclear proliferation on an industrial scale, as comments at successive NPT review conferences attest, but ministers routinely ignore.

Indeed, the ONR itself now publishes annual data on such withdrawals on its web site, http://www.onr.org.uk/safeguards/withdrawals.htm

 

See: Nuclear Safeguards Bill 2017-19 – Library briefing, http://researchbriefings.files.parliament.uk/documents/CBP-8107/CBP-8107.pdf

 

1.       BBC 2nd Nov 2017 http://www.bbc.co.uk/news/uk-politics-41836855

 


 

Monday, 30 October 2017

The importance of proper conduct and transparency by MPs

This excellent submission was made 11 months ago by Martin Williams, author of 'Parliament Ltd' to the Parliamentary Commissioner for Standards' review of the MPs' Code of Conduct in autumn 2016, and remains presciently relevant today.
 
Email from Martin Williams
30 November 2016
 








Introduction



I approach this issue as an investigative journalist and author. I spent a year researching


parliamentary standards ‐ particularly concerning financial interests ‐ and wrote about it in my book,
Parliament Ltd (Hodder, 2016). Beyond exposing examples of conflicts of interest, greed and excess,
the more fundamental problems highlighted were about the rules and regulations for parliamentary
standards.

There is an urgent need for a complete shake‐up not only of the rules, but the entire way Parliament
approaches the issue of standards. In this submission I have briefly outlined some of the main areas
of concern, based on my research and findings, and have concluded with a summary of the key
changes that I believe need to be made. Beneath this submission, I have also responded to the
specific questions asked by the consultation. I hope this is useful.

The public consultation



The essence of the problem with Parliament’s approach to standards is apparent even in this public
consultation. Is the aim really to consult the honest opinions of the general public? Or is it merely to
source guidance from a narrow selection of insiders? Would you actually be prepared to make
sweeping reforms, if that’s what the public demanded?
The first part of this consultation, in early 2016, was buried deep on Parliament’s website; a long,
complicated document full of niche and technical questions. It’s hardly surprising the whole exercise

ended up being rather pointless ‐ it achieved just 19 responses, of which only eight were from
members of public. Other submissions came from four MPs, the head of civil service, three official
standards commissioners, two parliamentary committees and Transparency International, whose
short response explained: “We do not currently have the resources to respond in detail.”
Rather than asking fundamental questions like “should MPs be allowed to vote on areas where they
have financial interests?”, or “should failure to declare an interest be a criminal offence?” the public
were presented with questions like: “Does the Rule set out in Paragraph 10 convey adequately the
intention of the House in relation to Members’ conduct of their public lives? What, if anything, could
be done to explain this more clearly?”
There has been no improvement this time around, with this part of your consultation. This may
sound like a trivial point (and on one level it is, given that the consultation is just the tip of the
iceberg when it comes to problems with the regulation of standards). But it seems to represent a
broader failure in Parliament’s approach to the issue: placing trust in MPs and authorities, while
refusing to take public opinion seriously. The entire system is framed in a way which serves and
benefits insiders, rather than the public. This problem can be found in almost all aspects of the

regulatory system, as I will outline ‐ be it the Register of Interests, the rules on financial interests, or
the enforcement of the rules.


Register of Interests



Nowhere is this approach more alarming than in regulations for the registration and declaration of
financial interests. The key problems with the Register of Interests are:

The Register of Interests is never audited by any official body. This is possibly the most
unhealthy thing about the entire system of standards regulation. The Register is, instead,
37

only ever checked by third‐party volunteers (including members of the public, journalists
and rival MPs who wish to scrutinise the interests of another Member). Parliament invests
absolute trust in MPs and places the onus on others to ensure that the declarations they are
publishing are correct.
Although the Commissioner for Standards has the power to investigate and seek corrections
to the Register, this appears to only happen when a complaint is made by a third party. But,

of course, if something hasn’t been declared, it can be often be near‐impossible to find out
about it in the first place. This means the Register is open to abuse.
At best, the failure to audit the Register shows contempt for transparency. At worst, it is
tantamount to institutional gross negligence. Parliament should therefore establish a fully
independent auditing body which conducts regular audits of the Register of Interests to
ensure registrations are accurate, comprehensive and timely.

The format of the Register makes it impenetrable for anyone who wants to scrutinise it
properly. The biggest complaint in this regard ‐ concerning the file format ‐ has, I believe,
been made several times before, but is worth repeating. The Register should, of course, be
published in a spreadsheet format, rather than PDF or HTML. This is absolutely critical for
the proper analysis and review of information. Further to this, there are a number of factors
that should also change if Parliament wants the Register to be fully accessible:

o The unique company or charity number should be given for each company or charity
mentioned on the register. During my analysis I found dozens (probably hundreds)
of examples where an organisation’s name had been written incorrectly on the
Register. Having the unique number would make it quick and easy for organisations
to be properly identified.

o Data should be standardised so it can be compared and analysed. At the moment,
interests are not registered in a uniform fashion. For instance, annual income from
outside jobs might be given in annual or monthly amounts, while the value might be
gross or net. The Register (in database format) should also allow the public to sort

and analyse the information by different criteria ‐ in a similar way that IPSA’s
expenses database works ‐ rather than clumps of ‘free text’. It should be quick and
easy to discover, for instance, how your MP ranks in terms of outside income, or
how many hours they spend doing outside jobs, compared to others. Similarly, it
should be possible to sort by other categories like company name, so it would be
possible to find out how many MPs earn money from a particular firm.
Organising the data in this way is not a challenge in the 21st century, nor would it be at all
expensive. In the scale of things, these are very simple solutions that would vastly improve
transparency. It is frankly unbelievable that Parliament still publishes its data in such an outdated
and unuseful way.

The rules



The next fundamental change that must take place is the rules. Here again, we see the same
contempt for public opinion, alongside absolute trust in MPs’ honesty.
In general terms, the rules for financial interests allow far too much to go undeclared. During my

research for Parliament Ltd, I conducted an independent analysis of the company directorships held
by MPs and Peers ‐ something that I believe had never been done before. I found that 40% of
directorships declared with Companies House were not declared in Parliament’s Register of Interests
38
(this covers both Houses). The reasons were varied: some were clear omissions, but a great many
others would probably not have been deemed a breach of the rules, because the rules allow so
much to go undeclared. There are too many loopholes, caveats and declaration thresholds, allowing
countless things to slip under the radar.
It is not just the case with directorships, but with most categories of interests. And this is part of the
reason why the Commissioner for Standards keeps handing out controversial judgements (i.e. when
MPs are inexplicably let off with a free pass, despite what many may assume to be a breach of the
rules).
The key problem is that the public has no say over what is “relevant”, and what is not. Countless
interests are allowed to be left off the Register because Parliament (i.e. MPs and ultimately the
Commissioner, if a complaint is made) has deemed them to be “irrelevant”. Thus, the onus is put on
the public, first to discover any undeclared interests (which may be impossible to discover), and then
to try and persuade the Commissioner that they deserve to have been told about them.
There appears to be a persistent misunderstanding in Parliament about the purpose of transparency;
an assumption that registration and declaration of interests only really matters if there is a conflict
of interests. However, the whole point of transparency should be that the public can make the
decision about what is “relevant” for themselves. A policy of highly selective declaration for specific

bits of information is not the same as transparency. The current approach starts with the assumption
of secrecy, and then looks for exceptions ‐ rather than the other way around. But it should not be for
MPs or Parliament to dictate what the public deserves to know about, unless good, clear


explanations can be given for non‐disclosure. Therefore, the defence of not declaring something
because it “isn’t relevant” is deeply anti‐democratic; placing the power in the hands of MPs and
Parliament, rather than the public.
An example of this problem is highlighted in the Commissioner’s 2016 report into the complaint I
made about Gisela Stuart MP, following publication of my book. The Member had partnership points
in Vestra Wealth LLP, a wealth management partnership which offered “offshore and international

planning for non‐domiciled and non‐resident clients”. This was not listed in the Register of Interests,
despite Stuart standing unsuccessfully to be chair of the Public Accounts Committee, which


investigates tax planning and non‐doms. However, the Commissioner’s report found Stuart had not
breached any rules in relation to her standing for this position because it was deemed that the
financial interest did not “meet the test of relevance” in relation to the PAC, because the partnership
did not specialise in a single specific area or type of investment.
The problem is not just the fact that members of the public may take a different personal view to the
Commissioner, i.e. by considering the financial interest to have been relevant to the PAC election.
The issue is deeper than that: the public were not able to form an opinion about it in the first place,
because it had not been declared. And there is no method of contesting the Commissioner’s
judgement, following the ruling. It is one person’s view versus another’s. In other words, the report

not only ruled that it was not “relevant” to the PAC, but also ‐ by extension ‐ that the public had no
right to know about it. This meant Stuart was completely within her rights not to register or declare
it, whatever the public may think of that.

Clearly, MPs cannot register absolutely everything, but Parliament has nevertheless approached this
issue the wrong way around. The starting assumption should be transparency, and if there
objections for particular things then let’s hear them. Instead, the rules start from an assumption of
financial privacy and then picks out random items that it has decided should be in the public domain.
39
All directorships should be declared, unless someone can give a good reason why not. The same
goes for all jobs (both remunerated and unremunerated), charity trusteeships, investments and
property. Apart from the possibility of exceptional circumstances, there is no reason why most of
these basic things cannot and should not be declared, other than the unwillingness of Parliament to
impose such rules. Declaration takes barely any time at all and should be a basic requirement of
public office.
It is notable that the requirements for declaration of financial interests is, in places, far more strict
for local councils than it is for the House of Commons. Councils have to abide by statutory legislation

‐ Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012 ‐ which, for instance,
requires registration of “any employment [by the councillor, or their partner], office, trade,
profession or vocation carried on for profit or gain”. Whereas, in the House of Commons,
registration in this category is restricted to work with a minimum income threshold (£300 or £100,
depending on the frequency of payments), and does not cover MPs’ partners unless they work in
lobbying or are paid from parliamentary expenses. Likewise, councillors and their partners are
required to declare “any beneficial interest in land which is within the area of the relevant
authority”. This compares to the House of Commons, where MPs only have to declare land if it has a
total value of over £100,000, or if an income of more than £10,000 p.a. is derived from the property.
And again with investments, the minimum threshold for councillors’ declarations is £25,000,
compared to £70,000 for MPs.
The rules contain so many shortcomings that it would be impossible to discuss them all here.
However, here are three further points which I think are particularly noteworthy.
1. The rules do not enable Members to update the value of shares any more regularly than
once a year. In fact, it seems that Members could be required to actually backdate the value
of shares. This became apparent to me following my complaint about Gisela Stuart MP, and
the Commissioner’s subsequent report which found she had not breached any rules. Shortly
after I questioned Stuart in person about her partnership points, she made enquiries about
their value and subsequently added it to the Register, having found out that the estimated

value was in fact £93,000 ‐ considerably over the £70,000 threshold. However, in her report,
the Commissioner for Standards said that “shareholdings… should be registered based on
their value on the preceding 5 April”. She added that it seemed likely the value of Stuart’s
partnership points had only increased in recent months, and there was no evidence to
suggest it exceeded the value at the preceding 5 April. Therefore, Stuart had clearly not
broken any rules, despite the fact she had had an undeclared investment which was over the
threshold value. This case highlights the possibility of significant things going undeclared
without a single rule being broken. The same is true of many other categories of interest,
including charity trusteeships, which regularly go undeclared. The problem is that interests
may become relevant to any member of the public at any time throughout the year, and
depending also on what that MP does throughout the year. It is not good enough simply to
have an annual update where the public can retrospectively discover the financial interests
their MPs may have held for the past 11 months. So if Parliament really does believe that
investments over a certain value should be declared (as it claims to), then it should establish
proper rules to ensure this always happens.
2. Until the 2015 General Election, the rules required MPs to disclose contracts for any outside
jobs which involved “the provision of services in his capacity as a Member of Parliament”.
This has now been scrapped and the requirement no longer applies – I am unsure about the
reason for this change. It is true that the rule was rather vague, and had limited impact,
given that contracts were only available in hard copy in the Parliamentary Archives.
40
However, the change should have gone the other way: to expand and clarify the rule, rather
than scrap it. MPs’ outside job contracts are now completely confidential, even when they
are being paid to provide services in their role as an MP. This is nothing short of a scandal,
especially as the change appears to have taken place without nearly the level of scrutiny or
debate that it deserved.
The rule should be brought back and expanded to cover all contracts for external paid
employment, regardless of what the work involves. These contracts should be posted on
Parliament’s website so members of the public can see for themselves the terms under
which their MPs are working for private companies.
3. Despite all the rules, conflicts of interest are still allowed in Parliament. The rules do not
adequately cover this. There is nothing to stop an MP speaking in a debate in which they
have significant financial interests, so long as those interests are declared. This can (and
does) lead to a distortion of the democratic process. A particularly striking example can be
seen with landlords. Some 30% of MPs earn money as landlords, compared to just 2% of the
public, yet they are allowed to join debates on the subject and vote. The same is true for

individuals who have interests ‐ there is nothing in the rules to prevent a conflict of interest,
as long as they are not being specifically and directly paid to lobby or vote in a particular
way.
Other, more modern, democratic government institutions have strict rules against this. For
instance, the rules of the Welsh Assembly Government state: “Where a Member has a
registrable interest which is required to be declared … the Member is not allowed to vote if
in relation to that interest the decision might result in a direct financial advantage to the
Member which is greater than that which might accrue to the electorate generally.” What
possible reason could there be for imposing such a ban on the Welsh Assembly Government,
but not on the House of Commons? Either conflicts of interest have the potential to distort
the democratic process, or they do not. Parliament’s continued failure to bring in such a ban
shows contempt for democracy and accountability and should be urgently reviewed.

Enforcement of the rules



The systems for enforcing the rules on financial regulation have proved themselves time and time
again to be not fit for purpose. Both the Commissioner and the Committee for Standards will be well
aware of the overwhelming criticisms of their work, but it is worth noting some of the biggest and
most fundamental problems.

Almost always, the penalties handed out to MPs who breach the Code of Conduct are
laughable. One of many examples: while a government minister, Vince Cable was accused of


taking a £6,000 donation‐in‐kind without declaring it on time. After making a slight apology,
the only penalty issued by the commissioner was that the relevant section of his Register of


Interests would be temporarily printed in italics. This is not a serious or credible penalty ‐ it
is nothing more than the equivalent of a teacher’s red pen. A glance through the
Commissioner’s reports will show how, time and again, serious breaches are brushed under
the carpet. Rarely is a sanction any more than a temporary change of typeface. This has two
effects: first, there is no deterrent for MPs who may be lax about their declarations; second,
it gives the impression (possibly correctly) that Parliament is not really that bothered about
breaches to the Code of Conduct.
The penalties need to be made significantly more substantial. In the Welsh Assembly
Government, the rules state that it is “an offence for a Member to take part in any
41
proceedings” if they have failed to declare relevant interests. . The rules add: “A Member
who is guilty of such an offence is liable on summary conviction to a fine of up to level 5 on
the standard scale.” Again, there is no good reason why failure to declare interests should be
a criminal offence for Welsh Assembly Members, but not for MPs. I would strongly urge
Parliament to consider bringing in such an offence. It is unlikely there would be nearly so
many breaches of the Code if Members knew they could be breaking the law in doing so.

The lack of independence (of both the Committee and the Commissioner) means there is
zero credibility over the enforcement of rules. This argument has been made many times
before. MPs should not be allowed to police themselves, nor should they be allowed to
directly appoint those who police them. Even if there is no influence, there is certainly not

the appearance of no influence ‐ and that is essential for credibility, as with all regulatory
bodies. The entire framework for regulating standards should be shifted to an independent
body similar to IPSA.

The failure to take significant action against Standards Committee members who have
breached the rules further undermines its credibility. It is unbelievable that so many


members ‐ including the chair ‐ have not only been found in breach of the rules, but also
that they have been allowed to remain on the committee. I can see no possible justification
for this.

Like the Commissioner and the Committee for Standards, the ACOBA watchdog is not fit for
purpose. Much has been said about this already, so I will not go into detail other to agree
with the view that ACOBA is a pointless, toothless watchdog that further discredits
Parliament’s approach to standards. It should be beefed up and controlled entirely
independently from Parliament.

Summary of proposed changes



1. Make it a criminal offence for MPs and Peers to fail to declare financial interests.


2. Ban MPs and Peers from voting on issues where they ‐ or companies they work for ‐ stand to
gain from the decision (i.e. gain more than the standard population).


3. Expand the rules on disclosure to include all financial and property interests, all outside jobs
(including unpaid jobs), and all directorships, without exception.
4. Publish the Register of Interests in an accessible spreadsheet format, which provides a
sortable breakdown of the details. This should include the unique company number for each
business interest and a standardised method of reporting external income.
5. Introduce a regular, independent audit of the Register of Interests.
6. Make MPs publish the contracts for any outside jobs they have and publish these online.
7. Scrap the Select Committee on Standards, the Office of the Parliamentary Commissioner of
Standards and Acoba and hand responsibility to either IPSA or another independent
organisation.
42

Responses to the specific Consultation Questions



1. No. See Q2 for detailed explanation and suggestions.
2. The descriptors allow too much ambiguity, and they too often place the judgement of what
is acceptable in the hands of MPs.

For ‘Selflessness’: the descriptor should be extended to include “‐ or act in a way that could
reasonably be perceived to do so”, with regards to not acting in a way that benefits
themselves.

For ‘Integrity’, the new descriptor bases the judgement entirely on what an MP “believes to
be right”. This is not good enough, as we have time and again seen that the personal
judgement of MPs can vary widely and has often slipped well out of sync with public
expectations. The same is true with the use of the word “relevant” in the sentence about
declaring financial interests. You should add: “or anything that could reasonably be
perceived to be relevant”. Furthermore, while the old wording said that MPs must not
“place themselves under any financial or other obligation… that might influence them.” The

new wording seemingly allows them to do this, just so long as they resist the influence. This,
surely, is not desirable.


For ‘Objectivity’ the current wording is far better than the proposed change. The current
wording is specific and concise, whereas the proposed change is vague, ambiguous and
effectively meaningless.

For ‘Accountability’, the word ‘accountable’ has ‐ inexplicably ‐ been removed and replaced
with ‘responsible’. This is a bad and worrying proposal. It is important that public office
holders are not just held responsible, but also held accountable for their actions. The new
wording should preferably include both words (“Members are accountable and responsible
for their actions…”), but the word ‘accountable’ is without doubt the more important of the
two.

For “Openness”, the new wording is completely inappropriate as it provides a huge caveat
for the principle of openness ‐ namely that the principle only applies when an MP personally
deems it to be “possible”. Again, we have seen that MPs’ perceptions of what it is possible
and appropriate to disclose have varies greatly and have often been out of sync with public
perceptions. Therefore, the wording should be adapted to incorporate aspects of the current
descriptor, and the 2013 descriptor, like so: “Holders of public office should act and take
decisions in an open and transparent manner. Information should not be withheld from the
public unless there are clear and lawful reasons for so doing. They should give reasons for
their decisions and restrict information only when the wider public interest clearly
demands.” Although the proposed change is shorter, it allows huge ambiguity. It is better to
clearly specify the exact detail of this principle, rather than leave it to MPs to interpret it,
each in their own way.

For ‘Honesty’, the proposed changes are a clear improvement.
For ‘Leadership’, the new wording is fine, although I think it is a shame to have removed: “be
willing to challenge poor behaviour”.
43
3. I would like to suggest the following changes to the rules:

In Paragraph 6 (Conflicts of Interest), this should be adapted to include reasonable
perception of conflicted interests. E.g.: “A Member must avoid conflict ‐ or perceived conflict
‐ between the public interest and their personal interest.”
In Paragraph 7 (Advocacy and paid lobbying), this is too ambiguous. How is a “paid
advocate” defined? It is not clear from the rules and is left to interpretation. For instance,
although it is fairly clear that this would include a ban on having a job as a PR consultant who
worked for clients trying to influence Parliament, it is less clear whether the rule includes a
ban on running a PR company that lobbies Parliament if the member works as a CEO, rather
than an actual consultant. I would argue that any paid work for any lobbying or advocacy
company should be banned because although a CEO may not personally deal with clients
themselves, they will clearly have the interests of clients in mind and will have a direct
financial incentive to promote them. Therefore, Paragraph 7 should go on to say “…or accept
any paid work for an organisation that seeks to lobby Parliament and has financial incentives
for doing so.”

In Paragraph 10, I would argue that it is time to strengthen the rules to prevent conflicts of
interests and suggest the rules should reflect this by banning MPs from voting in debates
where they have relevant financial interests.