MPs ON THE FIDDLE

MPs have pocketed more than £1million in the last eight weeks as the expenses watchdog tries to silence their complaints about the new system. MPs are in revolt over the Independent Parliamentary Standards Authority, which they claim is treating them like 'benefits claimants'. IPSA revealed that it is receiving more than 900 calls and emails from MPs and their staff every week, the vast majority of which are understood to be complaints and demands for cash. The watchdog said it had handed out £644,000 in cash advances to 168 MPs to tide them over before they receive their expenses.

The payments are worth an average of just over £3,800 for each MP. A further 93 members have been granted loans totalling £171,000, an average of £1,838 each. The bill tops £1million once £277,000 of expenses are added. IPSA, which was created in the wake of last year's expenses scandal, is attempting to slash £12million off Parliament's expenses bill, but MPs are threatening to veto its budget or even repeal the Act of Parliament which set it up. They say the new system is too complex and time-consuming, and complain that under the new regime they have to pay expenses out of their own pockets.

Others say they have not been reimbursed on time and that IPSA has mixed up their expenses with those of other MPs. IPSA hit back, revealing that its staff have had to respond to around 4,000 emails and 3,400 phone calls, an average of 500 emails and 425 calls a week. (Source: Daily Mail, Jul/10)

Troops are being forced on to the street as MPs take their cheap rooms at a Forces refuge. The Union Jack Club was set up to offer affordable lodgings in London for military personnel but a loophole in the Waterloo establishment's rules also lets MPs stay there for as little as £59 a night. And politicians are flocking to take advantage after their expenses rules were toughened up. It means Afghan and Iraq heroes are forced to crash on friends' floors as they cannot afford pricey hotels.

One furious NCO who was turned away said, "It is an absolute disgrace. The Union Jack Club is about the only place someone on an Army wage can stay in central London. But I was told by the receptionist that since the expenses scandal, it's been full of MPs. As long as they're comfortable, why would they care about someone like me who has served 24 years?" A club spokesman confirmed members regularly stay but he added, "We try to accommodate every serviceman." (Source: The Sun, Jul/10)

Three former Cabinet Ministers were secretly filmed discussing how they could help a fake lobbying company, with one boasting that he was a ‘cab for hire’ for £5,000 a day. In the most damaging revelations, ex-Transport Minister Stephen Byers claimed that he managed to save ‘hundreds of millions of pounds’ for one company by using his influence with his successor Lord Adonis over a rail franchise. Mr Byers also claimed that he had boosted the business interests of Tesco by phoning Peter Mandelson, and said that he could bring Tony Blair to meet clients of the lobbying company which was, in fact, a front for an undercover operation.

Former Health Secretary Patricia Hewitt claiming that for £3,000 a day she could help clients to influence legislation, boasting that ‘if you’ve got a client who needs a particular regulation removed, then we can often package that up’. Former Defence Secretary Geoff Hoon promising to lead a delegation of clients to meet Ministers, and saying that he wanted to turn his knowledge and contacts into ‘something that frankly makes money’. He quoted £3,000 a day. Another Labour MP, Margaret Moran, boasting she could ring a ‘girls’ gang’ of colleagues, including Jacqui Smith, Hazel Blears, Caroline Flint and Harriet Harman, on behalf of clients.

In total, 20 politicians, including peers, were approached by the fake lobbying company, Anderson Perry Associates, in reality a front operation registered to the house of a Channel 4 producer. Of these, 15 agreed to meet and ten were invited in for interviews, including Baroness Sally Morgan, a former adviser to Tony Blair in No10. Downing Street aides were particularly nervous about comments Ms Moran is believed to have made suggesting that she was able to influence immigration policy on behalf of clients.

However, Mr Byers is seen boasting on camera that he persuaded Lord Adonis to alter the terms of a rail franchise on behalf of National Express, a move worth hundreds of millions of pounds to the company. He says, "So between you and I, I then spoke to Andrew Adonis, the Transport Secretary, and said, 'Andrew, look, they’ve got a huge problem. Is there a way out of this?' And then we, we sort of worked together, basically, the way he was comfortable doing it and you have to keep this very confidential yourself."

He also claims that he stepped in after Lucy Neville-Rolfe, the corporate and legal affairs chief at Tesco, rang him to say she was concerned about new food labelling rules being proposed by the Government. Byers said, "So you ring Peter Mandelson and say, 'Peter, did you know what Hilary Benn’s about to do? He’s going to introduce a regulation which is going to have this huge nightmare in every supermarket.”’ As a result, Byers claims, "Peter got it delayed and then got it amended."

He also drags former Prime Minister Tony Blair into the scandal, saying, "I see Tony Blair every month and you’ll probably find a lot of your clients really quite like him. If there’s an event... we could have a word with Tony, say come along for a drink." Labour immediately launched a damage-limitation exercise, with party sources stressing that the MPs, who are all leaving the Commons at the next election, were ‘mortified by how stupid they have been’.

Although the Anderson Perry Associates website described it as ‘a bespoke consultancy’, its London offices were hired by the hour and its US phone number was bought from a ‘call-forwarding’ service, which diverted enquiries back to Britain. MPs were met by a young female ‘lobbyist’, calling herself Claire Webster, who talked to them about what they could do for the firm’s clients. The Government will find it particularly galling that the Conservatives were not fooled by the operation.

Tory MP Julie Kirkbride agreed to visit the company’s offices, but withdrew after becoming suspicious that the lobbyist did not seem genuine. She alerted the Conservative whips, who warned MPs not to accept any invitations by the company. Friends of Mr Byers say he regretted boasting to the fake lobbyist. After a day’s reflection following his interview, they said he had grown suspicious he had been part of a set-up and emailed Anderson Perry to say he had had second thoughts.

He claimed that he had effectively lied throughout his meeting. In a statement he said, "I attended an informal meeting to discuss a potential job opportunity. During the course of a casual conversation I made some exaggerated claims. Having reflected on my comments, I knew that I should immediately put the record straight. I did so the following morning by making it clear that I have never lobbied Ministers on behalf of commercial interests."

He added, "I later withdrew my name from consideration. I have always fully disclosed my outside interests. The set-up was a massive deception, which the Tory Party described as entrapment." A Labour source said, "Those MPs who are involved in this are mortified by how stupid they have been. There is no suggestion that they have broken the rules in any way, and they would rebut any such suggestion."

The source added, "Some of them had second thoughts after leaving the interviews, and contacted the company to say that they would not be working for them. If any wrongdoing is proved to have occurred, then we will not hesitate to take firm action." A second source added, "Moran has been very unwell with stress, and so should not be given any credibility. If you were to draw up a list of MPs able to influence power on a company’s behalf, she would be right at the bottom."

A spokesman for Lord Adonis did not deny that Byers had spoken to the Minister, but said, "There is no truth whatsoever in the suggestion that Byers came to any arrangement with Andrew Adonis on any matter relating to National Express." A Tesco spokesman said, "We did not speak to Mr Byers on food labelling, regulation or indeed any other issue. These claims are completely fictitious and Mr Byers has acknowledged this to us." Lord Mandelson also said he had ‘no recollection’ of talking to Byers about the issue. (Source: Daily Mail, Mar/10)

The three disgraced former Cabinet ministers at the heart of the 'cash-for-access' scandal are in line for lavish golden goodbye payments and seats in the House of Lords. The Commons authorities admitted they were powerless to block generous resettlement grants of up to £65,000 each to Stephen Byers, Patricia Hewitt and Geoff Hoon. And Gordon Brown refused to rule out peerages for the three who, as former Cabinet ministers, can expect a cosy berth in the Lords after the election.

Labour confirmed that Mr Byers, Mr Hoon and Miss Hewitt had been suspended from the Parliamentary-Labour Party, banning them from attending the group's weekly meetings. However they will not lose the party whip. They will also still qualify for 'golden goodbye' payments when they step down at the election. Mr Byers and Mr Hoon will each receive the £64,766 maximum. Miss Hewitt and MP Margaret Moran, who was also filmed offering to influence policy, will get £54,403.

It also emerged that the Government had delayed publishing the annual list of ministerial interests, prompting new allegations of a cover-up. Justice Secretary Jack Straw said the former ministers' had brought Labour and Parliament 'into disrepute'. Downing Street said the Prime Minister 'completely condemns the claims made by the former ministers' but saw no reason for an inquiry into the scandal. (Source: Daily Mail, Mar/10)