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MPs' second jobs to be disclosed MPs' second jobs to be disclosed
(about 6 hours later)
New rules have come into force requiring MPs to disclose all income they receive from second jobs and how much time they devote to them. New rules have come into force that MPs have to disclose all income and time devoted to their second jobs.
The new guidelines on disclosure of non-parliamentary pay were agreed by Parliament in April before the expenses crisis engulfed Westminster. Guidelines on disclosing pay from outside interests were agreed by MPs in April, before the latest expenses crisis engulfed Westminster.
Parliament is now considering a new law to make it a criminal offence for MPs not to declare a financial interest. Previously MPs only had to indicate what other salaries they earned if it related to their work as an MP.
Commons leader Harriet Harman said the public had a right to know the details. Later they will debate proposals to make it a criminal offence for MPs not to declare a financial interest.
Disclosure of MPs' outside financial interests was a real step forward in the drive to make the MPs system of pay and allowances more transparent and trusted, Ms Harman said. MPs are considering a package of reforms for Parliament which would make MPs liable for fines if they fail to comply with the rules governing financial interests.
The move is unpopular with some in Westminster who argue it will deter MPs from seeking outside employment which is useful to keeping them in touch with conditions in the economy and the needs of constituents. But on Tuesday, Justice Secretary Jack Straw conceded proposals in the Parliamentary Standards Bill were "too potentially onerous and too restrictive on members".
The public want to know who, other than they as taxpayers, is paying an MP Harriet Harman He dropped a clause spelling out what MPs would have to declare about their financial interests under legally enforceable rules.
But many others argue the job of an MP is a full-time one and well-paid outside interests are indefensible at a time when Parliament has been brought low by the expenses scandal and during the worst recession for 50 years. Labour backbencher Frank Field had complained it would require MPs to set "egg timers" to monitor time spent on outside activities and said he could face jail if it went into effect because he could not comply with the new rules.
MPs currently have to list outside employers and directorships but do not have to reveal how much time they spend on second jobs and only have to indicate salaries if it related to their work as an MP. Instead the government says, it will be for the new Independent Parliamentary Standards Authority "to determine what goes into the rules".
Under the new rules, MPs will have to declare in the member's register of interests: Before 1 July, MPs have had to list outside employers and directorships but did not have to reveal how much time they spent on second jobs and only had to indicate salaries if it related to their work as an MP.
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  • The precise amount of money they receive from any third party for work undertaken, even if it does not relate to their role as an MP
  • The amount of hours worked during the period for that individual or organisation
  • Name and address of the individual or organisation paying them, except where this would breach privacy, confidentiality or rules.
Under the new rules, MPs have to declare in the member's register of interests:
Ms Harman said this greater level of transparency would benefit both the public and Parliament.
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  • The precise amount of money they receive from any third party for work undertaken, even if it does not relate to their role as an MP
  • The number of hours worked during the period for that individual or organisation
  • Name and address of the individual or organisation paying them, except where this would breach privacy, confidentiality or rules.
"I believe that the public are entitled to know the source of work for payments to an individual MP, how much is being paid, and what the MP is undertaking for that payment," Ms Harman said. Commons leader Harriet Harman said: "I believe that the public are entitled to know the source of work for payments to an individual MP, how much is being paid, and what the MP is undertaking for that payment."
"It means that any payment to an MP for services, whether in cash or in kind, will have to be registered.
Abolishing outside interests would make all MPs totally beholden to the party whips Douglas Carswell MPAbolishing outside interests would make all MPs totally beholden to the party whips Douglas Carswell MP
"For the first time, the public will be able to see all the details. She added: "The public want to know who, other than they as taxpayers, is paying an MP."
"The public want to know who, other than they as taxpayers, is paying an MP." Labour MP John Mann said it was an "important step forward" but that he wanted a total ban on second jobs and on firms paying MPs to use their contact books and inside knowledge.
Labour MP John Mann described the plan as an "important step forward" but added that he wanted more reforms. "It's a form of insider dealing and it's entirely undemocratic and it needs banning," he said.
He said: "I'd like to see a total ban on second jobs and in particular cash for access, whereby private companies are paying MPs in order to use their contact books and use their inside knowledge. However, Conservative backbencher Douglas Carswell said the move could reduce accountability in Parliament.
"It's a form of insider dealing and it's entirely undemocratic and it needs banning."
However, Conservative MP Douglas Carswell said the move could reduce accountability in Parliament.
He said: "Abolishing outside interests would make all MPs totally beholden to the party whips."He said: "Abolishing outside interests would make all MPs totally beholden to the party whips."
Mr Carswell said the plan would "remove the scope" for MPs to hold the government to account while knowing that they were not "financially dependent upon their party machines".Mr Carswell said the plan would "remove the scope" for MPs to hold the government to account while knowing that they were not "financially dependent upon their party machines".
Conservative leader David Cameron has told all members of his shadow cabinet to divest their outside financial interests by December in preparation for the general election campaign expected next year. Conservative leader David Cameron has said all members of his shadow cabinet will give up their second jobs by December in preparation for the general election.
Several senior Tories, including William Hague, Oliver Letwin, Ken Clarke and David Willetts, either have lucrative second jobs in the City or supplement their salaries as MPs with work in journalism and public speaking.Several senior Tories, including William Hague, Oliver Letwin, Ken Clarke and David Willetts, either have lucrative second jobs in the City or supplement their salaries as MPs with work in journalism and public speaking.
Labour MPs whose reported income from second jobs has come under scrutiny in recent days include former ministers Alan Milburn and Nick Raynsford.Labour MPs whose reported income from second jobs has come under scrutiny in recent days include former ministers Alan Milburn and Nick Raynsford.
MPs are currently considering a package of reforms for Parliament which would make MPs liable for fines if they fail to comply with the rules governing financial interests.
On Tuesday, Justice Secretary Jack Straw conceded proposals in the Parliamentary Standards Bill requiring MPs to declare their financial interests should be redrafted.
At present, an MP needs only to draw attention to their entry in the register of interests if they speak on a subject which could be relevant to their outside work but the proposed new rules could be much stricter.
Ms Harman has said she is prepared to consider further action on second jobs and incomes if it was suggested by the Committee on Standards in Public Life which is conducting a review of MPs pay and allowances.Ms Harman has said she is prepared to consider further action on second jobs and incomes if it was suggested by the Committee on Standards in Public Life which is conducting a review of MPs pay and allowances.