MPs face crackdown on part-time second jobs

Jul 25 2008 Liverpool Daily Post

BRITAIN’S MPs face a ban on topping up their Westminster salaries with lucrative extra jobs, under government plans aimed at restoring trust in politicians.

The move – which comes amid public anger at “part-time MPs” – would penalise at least four from the region who are directors, advisers, or are paid-for after-dinner speeches and newspaper articles.

One is George Howarth, Labour MP for Knowsley North and Sefton East, who earns £30,000 as an adviser to the bookmakers William Hill.

Birkenhead Labour MP Frank Field is a director of Liverpool financial advisers Medicash Health Benefits and pockets up to £50,000 a year from articles and speeches.

On the Conservative side, Tatton MP and Shadow Chancellor George Osborne makes after-dinner speeches, including – controversially – on economic matters.

And Stephen O’Brien, the Eddisbury MP, has a string of directorships and adviserships, including with the Manufacturing Technologies Association.

However, all four are put firmly in the shade by Westminster’s truly big extra-curricular earners, a list topped by David Blunkett (up to £450,000), William Hague (up to £320,000) and Ann Widdecombe (up to £305,000).

Anger has grown on the Labour backbenches at MPs – mostly Conservative – who “sneak off to the boardroom”, rather than serve their constituents full-time.

Now, in a surprise move, Gordon Brown has asked Helen Goodman, the deputy Leader of the Commons, to explore possible restrictions.

Ms Goodman’s confidential paper suggests three options for change – a total ban, a US-style earnings limit of 15% on top of an MP's salary and a partial ban, outlawing paid directorships but allowing newspaper columns.

It concludes that 66% of Tory MPs, 37% of Liberal Democrats, but only 19% of Labour MPs have jobs outside Parliament.

Many MPs argue that outside work makes them better politicians by giving them experience of the “real world” outside Westminster.

But others argue that the eye-watering earnings on offer add to the tarnished image of MPs lining their own pockets.

Westminster sources insisted no decision had been reached, but confirmed a crackdown was being considered, to be introduced after the next election.

Significantly, former minister Chris Leslie – who ran Mr Brown’s leadership campaign – warned in a magazine article this week that “politicians need to set an example and act fairly”.

Mr Leslie wrote: “If MPs have excessive outside earnings from consultancies and directorships, then people perceive that they are diverted from the public interest.”