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ANNEX 5
The
Rules governing the Registration and Declaration
of Members' Interests
(i) Purpose of the Register
The Register was established
in 1975 with the purpose of providing:
"information
of any pecuniary interest or other material benefit which a Member[353]
may receive which might be thought to affect his conduct as a
Member or influence his actions, speeches, or vote in Parliament".
The introduction to the
annually published Register reminded Members that they were:
"required to
have this general purpose in mind when determining what interests
should properly be declared".
In June 1993, two amendments
were agreed by the House to this statement of the purposes of
the Register, which now reads (changes in italics):
The main purpose of
the Register of Members' Interests is to provide information of
any pecuniary interest or other material benefit which a Member
receives which might reasonably be thought by others to
influence his or her actions, speeches or votes in Parliament,
or actions taken in his or her capacity as a Member of Parliament.
The Register also states:
"It is left to
individual Members, with or without the advice of the Registrar,
to give the required information, and any inconsistencies of style
or content that are apparent in the Register spring from that
fact. Each member is responsible for what is recorded about himself
here, as each is answerable to his fellow Members and the public".
Members are required to
notify any change in their registrable interests within four weeks
of the change occurring.
In 1992, in a Report subsequently
approved by the House, the Select Committee on Members' Interests
warned Members against believing "that correct registration
and declaration adequately discharge their public responsibilities
in respect of their private interests". In an Appendix to
the Report, the then Speaker stated: "A Member must be vigilant
that his actions do not tend to bring the House into disrepute";
and he added: "Members who hold consultancy and similar
positions must ensure that they do not use their positions as
Members improperly".
(ii) The Classification
of Members' Interests (1984-June 1993)
The introduction to the
1984 published edition of the Register listed the following nine
categories of registrable interests (which were for guidance only
and were not to be regarded as exhaustive):
1. Directorships
(remunerated directorships of companies, public or private)
2. Employment or
Office (remunerated employments or offices, excluding
Ministerial office and membership of the European Parliament,
Council of Europe, Western European Union and the North Atlantic
Assembly).
3. Trades or Professions,
etc. (remunerated trades, professions or vocations)
4. Clients (the
names of clients when the interests referred to above include
personal services by the Member which arise out of, or are related
in any manner to, his membership of the House. [These services
include as well as any action connected with any proceedings in
the House or its Committees, the sponsoring of functions in the
Palace, making representations to Ministers, Civil Servants and
other Members, accompanying delegations to Ministers and the like].[354]
5. Financial Sponsorships
(a) as parliamentary candidate where to the knowledge of the Member
the sponsorship in any case exceeds 25 per cent of the candidate's
election expenses, or (b) as a Member of Parliament, by any person
or organisation, stating whether any such sponsorship includes
any payment to the Member or any material benefit or advantage,
direct or indirect; this subsection includes gifts in relation
to a Member's parliamentary duties, other than those received
from abroad to which category 7 applies. [Such gifts include
services: for example, the full or part-time services of a research
assistant or secretary by an external organisation].[355]
It is, however, not necessary for a Member to register the fact
that he is supported by his local constituency party).
6. Overseas Visits
(overseas visits relating to or arising out of membership of the
House where the cost of any such visit has not been wholly borne
by the Member or by public funds, but excluding overseas
visits undertaken on behalf of the Inter Parliamentary Union,
the Commonwealth Parliamentary Association, the Council of Europe,
the Western European Union and the North Atlantic Assembly, or
by any institution of the European Economic Communities).
7. Payments, etc.
from Abroad (any payments or any material benefits or advantages
received from, or on behalf of, foreign Governments, organisations
or persons).
8. Land and Property
(land and property of substantial value, or from which a substantial
income is derived, but excluding a Member's home, unless
he or she also receives an income from it).
9. Declarable Shareholdings
(the names of companies or other bodies in which the Member has,
to his knowledge, either himself or with or on behalf of his spouse
or infant children, a beneficial interest in shareholdings of
a nominal value greater than one-hundredth of the issued shared
capital).
(iii) Case Law
(a) Financial Sponsorships
In June 1989, the Select
Committee on Members' Interests ruled that the provision of office
facilities at a nominal rent is a registrable benefit under category
5.
(b) Clients
Adjudication (25 July
1990) on complaint against Michael Grylls MP concerning relationship
with Ian Greer Associates.[356]
(c) Anonymous Gifts
etc.
Adjudication on complaint
(15 January 1993): anonymous gifts or donations are not exempt
from rules on registration.
(d) Benefits
Adjudication (15 February
1993): benefit not exempt from registration merely because, when
offset against associated costs or inconvenience, it can be represented
as a net disbenefit to the recipient, or because it has been publicised
in other ways.
(iv) The Current Rules
and Guidance to their Application (June 1993 onwards)
Following a Report by the
Select Committee on Members' Interests, approved by the House
in June 1993, the classification of registrable benefits was revised
and certain of the detailed rules amended. These were set out
in a booklet entitled "Rules on the Registration and Declaration
of Financial Interests" published in October 1994. At the
same time a new, more detailed registration form was introduced.
Since then, the House has agreed a Code of Conduct which entered
into force on 24 July 1996 and which subsumed and replaced the
booklet issued in October 1994.
(v) Declaration of Interests
The rule relating to declaration
of interests (introduced in 1974) is a requirement separate from,
and additional to, registration. The latter is a permanent and
continuous record of Members' interests while the former is a
disclosure during debate or other proceedings of an interest specifically
relevant to that debate or those proceedings. The requirement
to declare an interest extends (and has extended since 1974) to
any "transactions or communications which a Member may have
with other Members or with Ministers or servants of the Crown".
The duty covers any "relevant pecuniary interest or benefit
of whatever nature, whether direct or indirect, that [the Member]
may have had, may have, or may be expecting to have."
The definition of "proceedings"
was extended to Early Day Motions in 1993 and to written questions
in 1995.
353 NB:
The registration requirements apply equally to Ministers who are
Members of the House of Commons. Back
354 Words
in square brackets added from 1986 Register onwards (the change
was approved by the House on 17 December 1985). Back
355 Words
in square brackets added from 1989 Register. Back
356 See
Appendix 57. Back
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