Commons Statement on Lords reform on the 19th July 2007

The Secretary of State for Justice and Lord Chancellor (Mr. Jack Straw):

With permission, Mr Speaker, I should like to make a statement on the way forward on reform of the House of Lords.

On 7 March 2007, after the free votes in both Houses, I said that I would make arrangements to reconvene the cross-party working group and that, after discussions with that group, I would return to the House to make a statement outlining the Government’s plans. Those free votes marked the fulfilment of the specific terms of one of our manifesto commitments on Lords reform. While the votes were an important milestone, we must not now lose the opportunity to make further and more fundamental reform happen.

In March, this House voted overwhelmingly—indeed, by a majority of 113—for a wholly elected House of Lords. It backed by a margin of 38 a substantially elected House based on an 80 per cent. elected and a 20 per cent. appointed element. It also voted by a majority of 280 to remove the remaining hereditary peers. As part of a comprehensive package of reforms, the Government are committed to removing the anomaly of the remaining hereditary peers, in line with the will of this House.

As this House will be aware, at the same time the other place voted for a wholly appointed House by a majority of 240. My right hon. Friend the Prime Minister said in his statement of 3 July that we should proceed in line with the wishes of this House, which all accept is the primary Chamber. That approach was underlined in the Green Paper on constitutional reform, “The Governance of Britain”, which I published on the same day. The Conservative and Liberal Democrat parties are committed by their 2005 manifestoes to a substantially elected House of Lords. [ Interruption. ] There was no commitment in the Conservative or Liberal Democrat manifestos to a free vote.

Tomorrow in the other place Lord Steel’s private Member’s Bill on Lords reform will have its Second Reading. My noble Friend Lord Hunt of Kings Heath will expand on our response when he speaks in that debate; suffice it now to say that the Bill does not contain the comprehensive reform that is the clear will of this House.

The cross-party talks before the free votes were successful in building up a significant degree of consensus on a range of issues, as reflected in the White Paper on House of Lords reform, which I published in February. I believe that this is the best way of proceeding. I shall continue to lead the cross-party talks, and since the free votes, we have held two further meetings. Given that all three main parties are committed by their manifestos to further reform of the House of Lords, it is right that the group should consist of Front-Bench representatives of the parties, as well as representatives from the Cross Benchers and the Lords Spiritual. But of course we want the widest possible consensus and I intend to make arrangements so that we can take proper account of the views of all parliamentarians, including non-party independent Members, and interest groups and the public.

The White Paper adumbrated the view that the consensus was for a hybrid House involving a 50 per cent. elected and a 50 per cent. appointed element. However, since both Houses rejected that option—notwithstanding my advocacy of it, or perhaps because of my advocacy of it—we will have to proceed with remodelling our work based on an 80 per cent. or 100 per cent. elected House of Lords.

Although there is agreement on some of the areas outlined in the White Paper, there is still some way to go on some other issues. The group will discuss the outstanding elements of the reform package, including powers, electoral systems, financial packages, and the balance and size of the House, including diversity and gender issues. We will also need to discuss the transition towards a reformed House in detail, including the position of the existing life peers and the need for action to avoid gratuitously cutting Conservative party representation in the Lords when and if the remaining hereditary peers are removed.

Let me turn to the powers of a reformed House. The Government have always said that the balance of powers between the two Houses described by the excellent and recent Cunningham report should apply to a reformed House. Those powers are currently underpinned by some statutory provisions, standing orders and conventions. We undertook to look further at whether the current conventions were adequate to ensure the desired relationship with a reformed House, following the free votes.

Over the coming months, we will look at how best to deliver a substantially or wholly elected second Chamber, based on the principle that this House is the primary Chamber and that an elected House of Lords should complement the House of Commons and not be a rival to it. As part of that programme of work it is vital that the relative powers of a reformed House be made clear. We will therefore look at ways to enshrine in a constitutional settlement the current balance of powers and the different roles of the two Houses.

The Government are determined to proceed with this programme of reform with a view to its completion. In dealing with such a central element of the constitution, it is right that there be as much all-party agreement as possible. I accept that there may well not be total agreement, but the constitution does not belong to any one party and it should not be used as a partisan tool.

Sir Patrick Cormack (South Staffordshire) (Con): It does not belong to you, either.

Mr. Straw: The immediate next steps are that I hope to be able to publish a further White Paper around the turn of the year setting out where we have got to in the cross-party talks—possibly accompanied by draft clauses that would form elements of the final reform Bill. Our intention through the work of the cross-party group is to formulate a comprehensive reform package that we would put to the electorate as a manifesto commitment at the next general election and which hopefully the other main parties would include in their manifestoes. [ Interruption. ] There may of course be areas on which each party takes a different view—and we have heard some of them already. However, there is the potential to reach a degree of cross-party consensus that will lead to the completion of Lords reform. The free votes in the Commons in March gave us a clear direction of travel on an issue that has dogged the country for decades. We now have a chance finally to finish the job.

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