Exclusive: Lord Paul responds to official report recommending his suspension
“I am disappointed that I seem to have been treated more harshly than others.”
By Mehdi Hasan Published 18 October 2010 16:28For journalists, the parliamentary expenses scandal is the gift that never stops giving. Yesterday's Sunday papers – chief among them the Sunday Times and the Sunday Telegraph – led with claims that three peers face suspension from the House of Lords over their expenses claims: Baroness Uddin, Lord Bhatia and Lord Paul.
The report of the House of Lords committee for privileges and conduct to which the Sunday papers referred to has been published today, and it does indeed recommend suspending the three aforementioned peers from "service of the House".
In reference to Lord Paul, the well-known businessman, deputy Lords speaker and Labour Party donor, the committee says:
27. We do not feel justified in finding, on the balance of probabilities, that Lord Paul acted dishonestly or in bad faith. However, his actions were utterly unreasonable, and demonstrated gross irresponsibility and negligence. They therefore render him liable to sanction by the House.
28. In mitigation, Lord Paul has apologised and repaid the money wrongly claimed.
29. We recommend that Lord Paul be suspended from the service of the House for four months, starting on the date on which any suspension motion is agreed by the House.
In the past few minutes, I have been speaking to Lord Paul to get his response to the committee's conclusions. He said:
I welcome the publication of the report from the House of Lords committee for privileges and conduct. First and foremost, my honesty and integrity have been upheld. I have never tried to claim anything which I did not believe I was honestly entitled to claim at the time. I am pleased that the committee for privileges and conduct has come to the same conclusion and has found that my actions throughout the investigation have been transparent and consistent and that the claims were honestly made and not in bad faith.
It is worth remembering that I requested the Clerk of the Parliaments, Michael Pownall, to conduct an investigation into my expenses on 12 October 2009 – the day after the Sunday Times first published its allegations against me. I also voluntarily and immediately repaid the full amounts in question, about £40,000, which I had claimed from January 2005 to June 2006. In fact, I voluntarily repaid a greater sum than the House could have required me to pay, both in respect of night subsistence and in respect of mileage allowance. There is no question about the propriety of any other claim made by me during the 14-year period that I have been a member of the House of Lords. It should also be remembered that, back in March, the Metropolitan Police decided there was no case for me to answer.
But does he deny that he registered an Oxfordshire flat as his main home, despite never spending a single night there, while claiming money in overnight expenses for a London property?
I do not dispute the basic facts. I made claims which, with the benefit of hindsight, I should not have made. I may have been negligent, as the committee has said, and the commitee has accepted my apology. Before this matter was raised by a Sunday newspaper late last year, however, there was no definition in the House of Lords of residence and a large number of peers therefore fell into error when interpreting the meaning of residence in the rules. There was no guidance on the meaning of "main residence" until March 2010, and it was finally clarified in July 2010 – that is, ten months after the allegations first appeared in the press. During the time period in question, 2005/2006, there was no definition of "main residence", nor was there even guidance.
I do not believe that either the subcommittee or the full committee can in effect apply the perspectives and standards of 2010 to actions and rules operating in 2005. I believe that the provisions which applied then on the designation of principal residence were wholly unclear. I believe that the fact that they have been either amplified or modified since then, and finally dispensed with by the House, strongly underlines my position. Given the lack of clarity in the rules which applied at that point, I do not believe that my own conduct in any way merits the decisions which the subcommittee and now the full committee have reached.
He has a point. And guess what? The new rules on allowances, agreed by the Lords authorities earlier this year, and backed by the coalition government and the Labour Party, might make things worse.
As the Sunday Telegraph's Patrick Hennessy noted yesterday:
The new regime will allow all peers to claim a lump payment of £300 a day for "clocking in" at parliament. Critics have claimed it could be open to abuse as it offers no safeguards against peers "signing in and sloping off". Under the new scheme, which is based on proposals made by the Senior Salaries Review Body last November, no receipts, or proof of a second home or hotel stay, will be required to claim the payment.
This is madness. Have officials in the House of Lords lost their minds?
And on what grounds have they gone after Paul, Uddin and Bhatia and ignored or excused the false/inaccurate/dodgy claims of dozens of other peers uncovered in the press? From the Sunday Times, in May 2009:
– Baroness Thornton, a government minister, claimed up to £22,000 a year in expenses by saying that her mother's home in Yorkshire was her main home.
– Lord Ryder, a former acting chairman of the BBC, claimed more than £100,000 by saying that a converted stable on his parents' country estate was his main home.
Then there is Lord Clarke, the Labour peer and former chairman of the party, who admitted that he "fiddled" his expenses to make up for not being paid a salary and claimed for overnight stays in London when, in fact, he drove home. His punishment? From the privileges committee report in March:
Accordingly, having taken into account his repayment of £9,190 to the House, and his full co-operation with the investigation, we recommend that Lord Clarke make a personal statement of apology to the House, before the end of the present session of parliament, to apologise without reservation for his misuse of the scheme.
So Clarke got off with just an apology. Isn't that odd? What about Lord Colywn, the Tory peer who claimed £170,000 by designating a Cotswolds property as his main home? Here is the bizarre verdict of Michael Pownall, the Clerk of the Parliaments (from February):
He has assured me in writing that his claims are an accurate record . . . he has also assured me that he lives predominantly in Gloucestershire when the House is not sitting . . . Given Lord Colwyn's assurances, I consider that his designation meets a test of main residence under the current scheme and accordingly do not uphold the complaint against him.
Great. Fantastic. That's OK, then. He "assured" the Clerk – and got off without a punishment. The whole process seems totally arbitrary and random. Unsurprisingly, perhaps, Lord Paul agrees:
I am disappointed that I seem to have been treated more harshly than others. Some of those peers accused of making incorrect claims were dealt with by the Clerk of the Parliaments, some by the privileges committee. Some have been subject to an inquiry, some have not; some have apologised, some have not; some have voluntarily repaid the sums incorrectly claimed, some have been asked to repay those sums; now, for the first time, three peers have been suspended while others have escaped suspension.
Despite the hurt that this has caused me, I accept the committee's decision in the best traditions of parliamentary democracy.
On a side note, some have suggested to me that part of the reason Paul has been the subject of such a severe sanction is that the five-member subcommittee on Lords interests, which investigated the three peers and recommended suspension, included Derry Irvine, the ardent Blairite. Paul is a prominent Brownite; in his own words, he has been a "steadfast friend and supporter of Gordon Brown whom I believe was a great prime minister".
A source present at Lord Paul's testimony to the House of Lords subcommittee in June tells me that Irvine's face blackened when Paul suggested he was being targeted by that committee because of his links to the former prime minister.
As Blair's Lord Chancellor, Irvine is (in)famous for having spent £650,000 of public funds on redecorating and refurbishing his official apartment in the House of Lords, including £59,000 on wallpaper. He refused to apologise for his acts at the time and described the spending as a "noble cause". That he now sits in judgement on the expenses claims of his fellow peers is, ahem, ironic.
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31 comments
Terrible hagiography. Lord Paul doesn't need to claim a penny. Mehdi should take a look at how appallingly he treats his workers, not do spin for him.
This is worthy of the Eye's Pseuds Corner. "[H]is actions were utterly unreasonable, and demonstrated gross irresponsibility and negligence..." yet you not only don't bother to question him on this, but actually say "He has a point".
Was this, in fact, an exchange of correspondence/e-mail? That would atleast give you a marginal excuse for what otherwise looks like absurd soft balling.
Simple question, Mr Staines: why were all the other peers let off without even slaps on the wrist? Lord Clarke with an apology? Are you defending them??
And why is yer man Osborne still in post, despite flipping his home?
The whole expenses coverage has been totally arbitrary...
Hagiography? Come on Guido, it's hardly biographical or idolatrous.
It's not spinning for Lord Paul, it's highlighting the arbitrary nature of the Privileges and Conduct Committee
I appreciate there is a 'polemical stance' to uphold, but to act as an apologist for Lord Paul et al (as Mehdi is doing here) is ridiculous. A four month sentence is completely fair given the 'utterly unreasonable' way that he has acted, and in regards to the findings of the sub-committee. Whether or not Clarke 'got off with an apology' is strictly irrelevant in that regard.
My concern is that this article tries to obfuscate Lord Paul's actions by creating spurious comparisons.
Here's a radical idea, Mehdi - we could think your defence of Lord Paul amusing, without defending other peers who appear to have abused the system.
We could also expect that someone pretending to journalism would have a defence of his own work that goes beyond "Everyone else's coverage has been crap too".
Of course, that argument's entirely in keeping with what you seem to be arguing - that Lord Paul should have been "let off" because other people appear to have "got off".
Do you have evidence to back your implication that either Colwyn was lying to the Clerk of the House or that there were any grounds for the Clerk of the House to disbelieve Colwyn's statement (if there's another meaning the relevant part of the article is capable of bearing, I'd love to hear it)? If so, I'd suggest you print it, then pass it to the Met for investigation.
As you should know perfectly well - but singularly fail to point out, despite printing the statement from him which avoids stating it explicitly - Lord Paul "...admitted that he never spent a single night at an Oxfordshire flat that he registered as his main home while claiming money in overnight expenses for a London property" (I'm quoting today's Telegraph story you link above).
Why these people are even in labour beats me, and why they are Lords.
But lets hope a few people who get their benefits mixed up get slaps on the arms, but nope it's jail for them.
new labour newer labour privilege is what counts.
Mr Hasan - you are ridiculous - what about Darling's flipping, what about Balls/Cooper flipping what about Balls claiming for a football season ticket.
New Statesman has Lost it!
Matthew Taylor wrote, "As you [MH] should know perfectly well - but singularly fail to point out, despite printing the statement from him which avoids stating it explicitly - Lord Paul "...admitted that he never spent a single night at an Oxfordshire flat that he registered as his main home while claiming money in overnight expenses for a London property"
Mehdi Hasan wrote, "But does he deny that he registered an Oxfordshire flat as his main home, despite never spending a single night there, while claiming money in overnight expenses for a London property?"
I thought MH pointed it out rather well.
Just because others are guilty does not make Lord Paul innocent. His moral culpability is clear.
He says, "There was no guidance on the meaning of "main residence"..."
Perhaps this is because, to an honest person, the meaning of "main residence" is bleedin' obvious? Does Lord Paul really think that a "main residence" can mean somewhere he's never spent a single night?
Please, Mr. Hasan, do expose the other fraudsters, but do not whitewash the fraudsters already exposed.
@Benedict: You're absolutely right; entirely wrong on my part - he did point that out. Perils of reading/commenting in haste.
Unfortunately, there's a more fundamental issue - despite Medhi's press release and tweets:
http://twitpic.com/2yr5zc
http://twitter.com/ns_mehdihasan/status/27739750298
it turns out that his "exclusive interview" with Lord Paul was just Lord Paul's press release:
http://blogs.birminghampost.net/news/2010/10/lord-pauls-response-to-parl...
Compare the bits quoted above, and in the NS press release twitpic'd by Guido, with the release quoted in full by Jonathan Walker
When he was "speaking exclusively to the New Statesman’s Mehdi Hasan" Lord Paul of Marylebone sent a word for word press statement out saying exactly word-for-word the same.
See the Birmingham Post http://blogs.birminghampost.net/news/2010/10/lord-pauls-response-to-parl...
Getting a slightly early copy of a press release doesn't make it an exclusive interview!
How very crass and dishonest! Poor effort.
classic 'churnalism', as guido calls it..lol!
He has admitted his guilt: "I do not dispute the basic facts. I made claims which, with the benefit of hindsight, I should not have made."
In other words, "I'm a fraud".
Yet Mehdi defends him - "He has a point."
Communalism comes to the New Statesman. But what would we know? After all, we're all cows wallowing in mud - or their moral equivalent.
The Question for Lord Paul is that should he have claimed a penny when he is worth £500 Million pounds. As far as I understand money and its worth. No!
The worst of capitalist world such as Gates and Buffet donated every single penny....and the best of socialism...here we go!
For him to hide behind the loophole of definition of main residence is exactly what the rich do when it comes to taxation. And there lies another tale of why socilaistic high taxes do not work. Because in ordinary sense what would be considered unethical tax avoidance, in law, people such as Lord Paul can get away very easily using one hole or the other.
4 months suspension is too less.
And off-course people such as Mr Hasan or Arundhati Roy or someone from the human right/ race relation brigand will be there to protect every kind of Criminal this world has ever known.
What an terrible piece of lazy journalism - awful and misleading. Do the New Statesman actually pay this guy?
treborc and julian, hear hear
Michael Townall - His name is Michael Pownall.
Now he was and is responsible for administering the expenses system. He also inquired into his own handling. He then makes that a state secret, on the grounds that it would bring the Lords into disrepute. ie. An admission they have been conning us. and no doubt had a hand in the little deceit of saying, we have no definition of a second home. Quite why with no definition of a second home they were dishing out any money is beyond me. He then drops this in the middle of a police investigation, bringing that to a halt.
I personally think this is malfeasance in a public office. The funny part is that he wouldn't be able to use his own report in his defence as he's made it a state secret. :-)
Suspension? How long is the rope?
"I am disappointed that I seem to have been treated more harshly than others."
It's even worse to feel one is being treated less favourably as a citizen than others in the same boat ie one's work/life balance. At least this chap knows how long the recommended hole in his career is going to be.
But I think, in relation to what everyone at work normally does it's extremely important that as citizens we can bring any worker - even Parliamentarians to account properly - especially when one's rights and liberty as a common citizen seem to be getting lost - including the right to be fully and properly informed about what we normally do at work.
Even though this chap is entitled "Lord" he is still just a citizen with the same rights and expectations that any body else may enjoy to be treated fairly by people at work -even people working in or for Parliament in some capacity or place.
All this confusion between our rights as workers and our rights as citizens is enough to leave anyone wondering what one is supposed to do to help improve things? And how? Perhaps God only knows..
In the meantime I should hereby like to point out that really one's own M.P may sometimes be the only and best resort to turn in storms such as these - This would be in the interests of accountability, responsibility and indeed all the seven principles of public life, probably.
We don't as yet means test Peers so he is entitled to claim only what he is due, but if I had been in is position, I wouldn't even have put in a claim(aka David Laws).
But I get the feeling that there is a concerted campaign being directed particularly at BME peers, and Lord Hanningfield, and it is sheer hypocrisy to ignore the failings of those other peers that have been let of the hook, where no severe action has been taken. There has to be fairness in all things.
As to 'turning to your own MP', well how can you when your own Conservative MP is mired in sleaze allegations himself. No redress there then.
I thought the turgid gobbets from Lord Paul in this article smacked of PR when reading them, and am grateful to fellow commenters for exposing that they are exactly that! I wonder if Mehdi's PR services are expensable.
Mehdi has clearly been duped or is a willing shill for Lord Paul on this issue: which?
It's revealing that Mehdi - last time I checked, a democratic socialist - lauds Paul as a "well-known businessman" without reference to his enormously lucrative tax-dodging non-dom status that allows him to pay no personal UK income tax or capital gains on the earnings from his business empire.
Mehdi shilled Paul's 'announced' change of tax status earlier this year (the interview in fact only confirmed an admission that Paul would comply with the law if if a non-dom ban was introduced, and comprising several large gobbets of PR-speak):
http://www.newstatesman.com/blogs/mehdi-hasan/2010/03/160-status-lord-pe...
Paul's actual renunciation of non-dom status has never been confirmed, and Mehdi clearly did not think it prescient to trouble Paul on this score.
After going through the article a few times, I can't help pick up on an implicit narrative thread in Mehdi's article is that Udin, Paul et al have been targeted because they are new to the house and are non-white. Tellingly, Mehdi names other, white, counter-examples of leniency and a panolopy of rhetorical questions - in the article and in comment below - to draw this inference.
But he can't actually say it, so he appends a specious "side note" on Brown v Blair, on the basis of what "some have suggested to me" (boilerplate journo guff for "speculation in the NS office has it", "I am inventing the proposition" or "someone with an axe to grind but sufficiently embarrassed by his allegation to remain anonymous would like me to report").
In so telling, Mehdi finds himself caught out spinning for discredited benefit cheats whose malfeasance distances all but media ferrets in the Westminster sack from trust or care about political life. I echo the other posters here that this is not Mehdi's finest hour.
Mehdi, if the coverage has been "arbitrary", why not have the testicular fortitude to aver what agenda "arbitrates" it?
I thought journalists were supposed to discuss or investigate this sort of thing, rather than merely insinuate about them (ahem) darkly.
Wahey! As I type, swatantra nandanwar's post (he a failed Labour candidate) evinces the process of influence by inference I allude to.
So come on Mehdi, out with it: is the HoL authority institutionally racist, or not?
Blairites. The curse of the Labour
Pure and simple; RACISM, RACISM, RACISM. DESCRIMINATION, DESCRIMINATION, DESCRIMINATION.
The Blairites have destroyed the Labour Party and continue to undermine the party. I envisaged they are pressurising Ed M on who to give the top jobs to. Please, please if you care about the Labour party, vote them all out, by supporting other progressives (NOT the new right wing LIBS) even if it is at the cost of being in opposition again. PLEASE.
Mehdi
Ignore all the negative comments. Every progressive on this site knowes that it is the Nasty Tory Trolls.
Keep on doing what you are doing Mehdi.
Channel 4 Dispatches episode was quite interesting tonight. Shows where the ConDems motivation comes from, and it is certainly not from the average citizen in the UK.
The ConDems are a disaater walting to happen in their structure - could even result in some sort of civil war of sorts this country has not seen since roundheads. And ironically, the Queen might be on our side.
Paul has a point. A number of offences have gone unpunished. But who in private employment would get a 4 month suspension (or in baroness Uddin's case a 2 year one)? You'd be out on your ear, quite rightly. And if these suspensions are the most severe penalty for a Lord, do the lords not have a sinecure no more palatable than peers by birth or church position? I'm sure there are plenty of fine asian pillars of society that could take the place of baronness Uddin. I for one don't wish to be represented by such a person. Nor by Lord Clarke who if he admits deliberately fiddling expenses.
Great article, Mehdi
Although I'm not sure I quite like the NOTW format: "Exclusive!..."
Would Matthew Taylor who villifies Medi and Lord Paul be the current head of the RSA and the former right hand Blairite man - if so, lets have solutions to the mess, not malicious criticisms. If not him, I defend his right to free speech!
I don't doubt that the rules on what constituted a 'main residence' might have been unclear - but how unclear would they have to be for you to honestly believe that a flat you've never spent a single night in qualifies as such?