HL Deb 01 February 1990 vol 515 cc413-5

3.14 p.m.

Lord Jenkins of Putney asked Her Majesty's Government:

Whether they will publish the advice given to Ministers on taking office as to those actions they should take and those actions they should refrain from taking in respect of investments, to avoid a conflict of interests.

The Lord Privy Seal (Lord Belstead)

My Lords, the general principle is that Ministers should ensure that no conflict arises or appears to arise between their private interests and public duties. This was set out by the then Secretary of the Cabinet in a memorandum to the Royal Commission on Standards of Conduct in Public Life in 1975, a copy of which is in the Library of your Lordships' House.

Lord Jenkins of Putney

My Lords, is the noble Lord the Leader of the House aware that towards the end of last year, to be exact on 25th November 1989, an article appeared in the Financial Times? It arose because of alleged impropriety by Mr. Cecil Parkinson and, with your Lordships' permission, I shall quote the passage for greater accuracy. It came at the end of a long article suggesting that some changes should be made. The newspaper stated: But is it really too much to ask that the government make its own guidelines public, in order to strengthen their impact and help ensure that conflicts are seen to be avoided? Is that not good advice, not merely from the point of view of the Opposition, but from that of the Government and even that of Ministers? Surely the majority of them are scrupulous in their observance of guidelines.

Lord Belstead

My Lords, the detailed advice to Ministers is contained in a Cabinet document. It has been the practice of successive governments that Cabinet documents should be confidential, but there is no great secret about them. As I said in my original Answer, in 1975 the then Secretary to the Cabinet submitted a memorandum to the Royal Commission, to which I referred. To all intents and purposes, the advice which was rehearsed in that memorandum is the same today.

Lord Cledwyn of Penrhos

My Lords, as the noble Lord has said, Ministers' rules of conduct are kept in confidence in the Cabinet Office. However, there is no secret about them. In those circumstances and because of recent events, would it not be proper to publish them so that the public may know precisely what the rules are?

Lord Belstead

My Lords, the noble Lord the Leader of the Opposition has a great deal more experience of these matters than I have. However, he would probably agree with me that as the years have gone by —and I am talking about the last 100 to 150 years —from time to time Prime Ministers or Ministers of the day have given answers about advice to Ministers, usually in answer to Parliamentary Questions. All the time it has always been accepted by all governments that the advice contained in a Cabinet document should be confidential.

I am being quite open with the House. I remind your Lordships that in 1975 a memorandum was drawn up; that memorandum is to be found in the Library of your Lordships' House. I state quite openly that to all intents and purposes the advice in the Cabinet document remains very much the same as it was in that 1975 memorandum.

Lord Jenkins of Putney

My Lords, no doubt the advice is the same but if the Government's policy of a shareholding democracy is put into effect, then is it not the case that more and more people would hold shares? Upon becoming Members of the Cabinet, a number of Members of the present Government did not put that policy into effect before declaring themselves to have no shares. Nevertheless, on reflection, the view may be taken that it is high time that this matter was made public. Thus if there is disquiet on the matter —and I think that there is —it may be put to rest and the public may be reassured that, while in the nature of things there may be occasional mistakes, there is no general avoidance of the rules laid down.

Lord Belstead

My Lords, perhaps I may seek to put the matter to rest. On assuming office, Ministers cannot be expected to dispose of all their investments. But when a Minister takes office he or she is given advice on how to ensure that any investments do not create a conflict of interest. I believe that that is right.