Federal Executive Statement on Parliamentary Expenses

11.02.00am BST (GMT +0100) Fri 22nd May 2009

Federal Executive acknowledge the strength of feeling amongst the public and our members and activists concerning the way in which Members of Parliament have been reimbursed for expenses and the revelations about the misconduct of particular Parliamentarians.

In expressing our disappointment in the behaviour and judgment of some Parliamentarians we reflected on how this situation is bad for democracy as a whole and unfairly damages the reputations of the many elected representatives that perform their public duties with integrity.

Federal Executive welcomed the strong leadership shown on this issue by our Leader, Nick Clegg. His commitment to support Christopher Kelly’s Review of MPs’ Expenses, his stand on the sale of second homes and his calling for the resignation of the Speaker of the House of Commons reflects our support for a thorough overhaul of the discredited present expenses system.

Federal Executive was briefed on the actions being taken by the Chief Whips in both Houses to review individually the expenses and allowances of all MPs and Peers. We noted the range of sanctions available for those who are found to have fallen short of the standards expected. Federal Executive was reassured that any Liberal Democrat MP found to be guilty of serious wrongdoing would have the whip withdrawn leading to deselection and would be referred by the party to the Commissioner for Standards. The Chief Whips will report on the actions they have taken at the next Federal Executive.

Federal Executive believes the principles of accountability, honesty, transparency and openness should underpin the new approach to expenses. We support an end to the self-regulation of parliament. Instead decisions currently taken by parliament which affect expenses, salaries, pensions and disciplinary procedures should be taken by an independent body, guaranteed by statute. We would also expect the new approach to build on the standards now adopted in local government towards the reimbursement of expenses incurred for performing public duties. We ask the Leader to reflect these views in our party’s response to the public consultation on Christopher Kelly’s Review of MPs’ Expenses.

By mid-June the Chief Whips in both Houses, working with other relevant parts of the party will produce a Code of Conduct for Liberal Democrat parliamentarians. The party’s Audit and Compliance Board will outline principles which will inform this Code of Conduct. Those drafting the Code were asked to consider issues covering, but not be limited to, guidance in addressing the following areas: Auditing of accounts Complete transparency of expenditure of public money Real time disclosure of receipt claims An expenses regime which accurately reflects the duties undertaken by Parliamentarians Sanctions for those found to be in breach of the Code

All Liberal Democrat parliamentary candidates will agree to abide by the Code of Conduct as a condition of selection. Other state parties and the European parliamentary party will be asked to produce a Code of Conduct which will similarly apply to all candidates.

The Federal Executive welcome the Leader’s commitment that all Liberal Democrat MPs will support Christopher Kelly’s proposals. These will be entirely independent proposals. There will be no picking and choosing of which of his recommendations to support.

Following publication, Lords McNally and Shutt will undertake a through review of expenses and allowances in the House of Lords which will draw on the work to be undertaken by the independent external assessor who is to be appointed immediately.