Lobbying Industry In The Spotlight Following Liam Fox's Resignation

Lobbying Industry In The Spotlight Following Liam Fox's Resignation

Downing Street has said it has no plans to rush through legislation to introduce new rules on transparency in the lobbying industry despite the Liam Fox affair.

The coalition agreement hammered out between the Tories and Lib Dems calls for an introduction of a statutory register of lobbyists and "ensuring greater transparency" amid fears that the firms exert undue influence.

Lobbying, or public affairs, firms, advise their clients how best to influence MPs and ministers to take their view on a particular issue of policy - from defence procurement to child poverty.

The issue had largely been on the back burner, but the furore over access granted to the highest levels of government by Fox to his best friend Adam Werrity has reignited the debate.

But the prime minister's official spokesman said on Monday that the two issues were not connected.

"These are separate things. There's always been a policy to move to a statutory register. That work has been ongoing," he said.

Political and constitutional reform minister Mark Harper told MPs last week that the government intended to consult and introduce legislation to bring in a register, but it will not happen until the second session of this Parliament - after the Queens Speech in May 2012.

Nick Clegg had initially indicated the new rules would be brought in this year.

There are rules on political lobbying, but there is currently no law that compels lobbying firms to register their activity.

In 2009 the Commons public administration committee published a report that called for a statutory register which would list all lobbyists, their clients and a diary of meetings.

Following the report the industry set up the UK Public Affairs Council (UKPAC), a voluntary register.

UKPAC claims it "promotes and upholds effective self regulation for those professionally engaged in public affairs". However technical problems have prevented the register from being kept up-to-date.

The world of lobbying is little understood by those outside Westminster - as is the somewhat revolving door between political office, lobbying firms and journalism.

A study by the industry's trade magazine Public Affairs News found 30 of the 232 MPs first elected in 2010 had came directly from lobbying firms or had a background in the industry.

And MPs often move into the industry after leaving, or being kicked out, of Parliament.

Former Tory MP Julie Kirkbride joined lobbying firm Tetra Strategy after leaving the Commons under a cloud following the expenses scandal.

And it was Tetra that was thrust into the limelight during the Fox affair, as they helped arrange a meeting between defence industry businessman Harvey Boulter and Werritty.

While there is no suggestion lobbying firms such as Tetra are engaged in illegal activity, the lack of transparency around the industry has led many, including David Cameron, to question their activities.

In February 2010, before becoming prime minister, Cameron warned that lobbying would be the next big political scandal.

"We all know how it works. The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisers for hire, helping big business to get its way," he said.

A view of the industry that can not be helped by the rather impenetrable mission statement displayed on Tetra's website.

"Tetra strategy has devised a novel approach giving us and our clients the insight to see and master complex patterns," it says.

"Developed from contemporary and emerging theories of complexity and chaos, we are bringing the science of influence and opinion to the art of strategic communications."

Labour leader Ed Miliband told Sky News on Monday that there needed to be greater transparency around the lobbying industry.

"We need to be transparent about our contacts with lobbyists. You don't want to create a bureaucratic nightmare, of course, and that would be the concern of civil servants," he said.

"But there does need to be greater transparency. People have a right to know who we meet and how we meet them, and I'm happy to do that going forward."

Lib Dem party president Tim Farron accused Miliband of jumping on the bandwagon of lobbying reform for purely opportunistic reasons.

“Ed Miliband’s sudden interest in getting to grips with lobbying is mere opportunism, not least as he and his shadow cabinet voted against Liberal Democrat proposals for greater transparency on this very issue when they were in government," he said.

“Liberal Democrats are the only party to have consistently called for reform of the rules around lobbying, that’s why there is a commitment to introduce a statutory register of lobbyists in the Coalition Agreement."

Of course the Lib Dems are not insulated from accusations that the relationship between public affairs firms and politicians is too close. Nick Clegg once worked as an account executive for political lobbying form GJW. And as Guido Fawkes pointed out on Monday evening, Nick Clegg's current head of communications also worked in the industry.

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