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Lobbying self-regulation 'failed'

5 Jan 2009


Lax rules are allowing former ministers to exploit their insider knowledge for profit "with impunity", a committee of MPs warned as it called for tougher regulation of lobbying.

And the public administration committee also called for all lobbying activity to be registered and monitored by a tougher watchdog - claiming the industry's attempt at self-regulation had entirely failed.

Ex-ministers are already required to seek advice - and abide by it - from an advisory committee when taking outside jobs related to their former responsibilities.

But the MPs' investigation found their recommendations varied inexplicably from case to case and were so vague as to allow most activity to continue unchecked.

"We are strongly concerned that, with the rules as loosely and as variously interpreted as they currently are, former ministers in particular appear to be able to use with impunity the contacts they built up as public servants to further a private interest.

"We think that this is unacceptable, particularly where they continue to be paid from the public purse as sitting Members of Parliament. The rules need to reflect this."

It cited the example of Stephen Ladyman who, despite being subjected to a lobbying "ban" after leaving his job as transport minister, was able to arrange meetings with senior officials for when it ended and use his former office "as a way of introducing himself when lobbying" for a traffic information company.

The committee ruled out an outright ban on such work but said it was vital that "consistent rules are strictly applied so that former ministers and other public servants are effectively prevented for an extended period of several years from using the contacts and sensitive information that they acquired in public office to further their own and others' private interests."

It said the Advisory Committee on Business Appointments should be revamped to better reflect the population - pointing out that its present members were all Oxbridge educated and over 70 years of age.

The most recent survey conducted by the Committee on Standards in Public Life found most voters (56%) believed half or more of government ministers used their power for their own personal gain.

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