IPSA: doomed from the outsetPosted on December 12, 2010
One of the most fascinating (and enjoyable) aspects of my time at the TaxPayers’ Alliance was being right in the middle of the melee during the MPs’ expenses scandal. We were in the right, whilst the opponents of transparency (particularly Michael Martin) made blunder after blunder – and as a result we were privileged enough to have great fun and great success in a good cause.
The difficulty was always going to be in getting the right solution to the problem. I am utterly unsurprised that, now they are fully up and running, IPSA is under fire for its mishandling of the new expenses regime.
I, and the TPA more generally, was always uncomfortable with the idea of a quango designed to oversee MPs’ expenses. It is clear that the opacity and unaccountability of the quango structure tends to produce inefficiency and unresponsiveness – the very things which neither taxpayers nor democracy can afford from a Parliamentary expense system.
The ideal solution would have been much simpler – to audit expenses, publish the claims and receipts in full and then give the people the power of recall, allowing them to sack any MP whom they felt to be misbehaving.
Instead, we got IPSA. As an aside, it’s hilarious to see MPs now objecting to the organisation when it was they who introduced the law to set it up – and in doing so rode roughshod over Sir Christopher Kelly’s popular and largely effective inquiry into the expenses system that was running at the same time.
Once IPSA was set up, we had to do our best to work with it in order to make it the best it could be. To that end, I sat on their Implementation Advisory Panel along with various other transparency campaigners and IPSA’s Chief Executive, Andrew McDonald.
It was worth engaging to push them in the right direction, but it wasn’t a very satisfying process – there were various issues where the panel didn’t concur with us in proposing a sufficiently strict scheme to protect taxpayers and I felt from the outset that IPSA was missing big opportunities.
One issue where it did seem that Andrew McDonald got it, though, was on transparency. As one of the original architects of the Freedom of Information Act, he appreciated that secrecy around MPs’ claims had allowed reprobates to abuse the system in the first place and turned a scandal into a wildfire once the truth began to came out. Transparency, he regularly agreed in those Implementation Panel meetings, must be the fundamental foundation of any new expenses system.
It’s bitterly disappointing, then, to see that IPSA are now refusing to publish the actual receipts for MPs’ expenses. I don’t know what in particular happened to push Andrew McDonald off the right path (though I could hazard a few guesses), but this is a betrayal of taxpayers and British democracy. What I do know is that this will always be the way of quangos – designed to be unaccountable, they will almost always end up disregarding the actual will of the people.
I have lost count of the number of times I have said the following words in recent years, but it seems sadly necessary to repeat them again:
Without full openness, trust in Parliament will never be fully restored. Worse than that, secrecy will allow people to steal from us again in future.