Introducing a Statutory Register of Lobbyists

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Introducing a Statutory

Register of Lobbyists


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Introducing a Statutory

Register of Lobbyists

Consultation Paper

Presented to Parliament

by the Minister for Government Policy

by Command of Her Majesty

January 2012

Cm 8233 16.00


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Introducing a Statutory Register o Lobbyists 3

Foreword

The Coalition Government is committed to introducing a statutory register o lobbyists. TheGovernment already releases a signicant amount o inormation at www.data.gov.uk. But we need to gourther; a statutory register o lobbyists is an important step towards making politics more transparent.

We are determined to keep working to open up politics, to make it more accessible to everyone.

Lobbying serves an important unction in politics by putting orward the views o stakeholders topolicy makers, it helps in the development o better legislation. But it needs to be open and transparent.

Members o the public, MPs and campaigners have written to us over the last eighteen months,expressing their views on what should be included in a register o lobbying activity. This consultation isintended to draw out all o those views and more. But we need you to help us - we want interestedparties, individuals and businesses to tell us what they think a register should look like. How would youdene a lobbyist? What sort o inormation should be held on a register? What sort o penalties shouldbe in place i you dont register?

Responses can be submitted in writing or electronically and the Government will publish a summary oconsultation responses once the consultation is closed. I hope as many people as possible will respondover the next twelve weeks, making sure that every voice is heard.

Oliver Letwin MP Mark Harper MPMinister or Government Policy Minister or Political and Constitutional Reorm


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4 Introducing a Statutory Register o Lobbyists


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Contents

1. Introduction 7

2. Consultation Details 8

3. Purpose o the UK statutory register 9

4. Questions or consultation: 12

Denitions; 12

Inormation to be included in the register; 14

How oten should the register be updated; 15

Should there be any additional unctions linked to the register;

How should the register be unded; 16

What sanctions would be appropriate 16

Who should run the register? 17

5. Summary o questions 18

Annex A: 20

1. Background 20

2. Examples o current practice in other jurisdictions 23

3. Examples o current practice in current UK registers 28

Annex B: Code o Practice on Consultation 30


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1. Introduction

The Government is committed to introducing a statutory register o lobbyists. Following the May 2010election, the Government said, in The Coalition: Our Programme or Government:

We will regulate lobbying through introducing a statutory register o lobbyists and ensuringgreater transparency.1

The Governments aim is to increase the inormation available about lobbyists without unduly restrictinglobbyists reedom and ability to represent the views o the businesses, groups, charities and other

individuals and organisations they represent or to deter members o the public rom getting involved inpolicy making.

This paper asks a number o specic questions whose answers will help inorm the drating o thelegislation that will be brought orward to meet the Governments commitment. Responses to thesequestions, and any other points you think relevant to legislation to create a statutory register o lobbyists,are invited by 13 April 2012. The Government will take all responses and suggestions into accountbeore bringing orward legislation, which will be ully debated by Parliament beore it becomes law.

1The Coalition: Our programme or government, Section 16 Government Transparency, pg 21. Available rom:www.cabinetoce.gov.uk/media/409088/pg_coalition.pd


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2. Consultation Details

Purpose

The purpose o this consultation is to give all interested parties the opportunity to comment on thepolicy options that will underpin the establishment o a statutory register o lobbyists.

Timetable

The consultation will run or 12 weeks rom 20 January 2012. The Government will consider allresponses received by 13 April 2012.

How to respond

Please send your comments and views to:

Statutory Register o LobbyistsArea 4/S11 Horse Guards RoadLondon SW1A 2HQ

Alternatively, please email your response to [email protected] marking your

response with Statutory Register o Lobbyists in the subject eld o your email.

Should you require this document or the consultation response template in a dierent ormat, pleaseadvise us o your specic requirements by contacting us at [email protected].

Confdentiality

The Government may pass the inormation you send to colleagues within the Cabinet Oce and othergovernment departments. The Government may also publish your comments in a summary o responses

to this consultation. The Government will assume that you are content with this and, when replying byemail, your consent overrides any condentiality disclaimer that is generated by your organisations IT

system unless you specically include a request to the contrary in the main text o your response.


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3. Purpose Of The UK Statutory Register

Lobbying seeking to infuence public policy, government decisions or legislation - can improve results byensuring that those developing and considering the options are better inormed about the consequenceso the available options. Lobbying is a perectly legitimate activity that has been carried out or manyyears in many dierent orums by a wide variety o individuals and groups o all sorts. However, wherelobbying is not transparent, it can undermine public condence in the decision-making process and itsresults.

The Government asks a number o questions in the next section on the denition o lobbying and the

scope and management o the register. However there are some points on which the Government doesnot propose to consult.

The purpose o the UK register is to increase transparency by making available to the public, to decision-makers and to other interested parties authoritative and easily-accessible inormation about who islobbying and or whom. This will help ensure that those seeking to infuence decisions do so in a way

that is open to scrutiny, improving knowledge about the process and the accountability o those involvedin it.

But the register is not intended to capture or deter a range o activity that is essential to a vibrantdemocracy. So, or example, the register is not intended to cover the normal interaction between

constituents and their MPs. Nor should the essential fow o communication between business leadersand Government, civil gures, community organisations and Government and so on, be included.

The Government already publishes quar terly inormation about Ministers meetings. Inormation aboutwhich stakeholders are meeting Ministers to put orward their views on policies is thereore alreadyin the public domain. But under the current system, when Ministers meet lobbying rms it is not

transparent on whose behal they are lobbying.

The Government does not wish to create an obstacle to necessary interaction with policy makersor an undue burden on those who work as lobbyists or employ lobbyists. At the end o this processo consultation and ollowing consideration o the responses, the Government envisages introducinglegislation to create a statutory register, run by a body independent o government, which collectsinormation on lobbyists and their clients.


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The Government believes that the result o the consultative process should be a set o proposals whichcreate a register which is a proportionate and considered response to public concerns about the lack

o transparency in the lobbying industry. It should increase transparency without stifing the useul inputinto policy making provided by lobbyists. A register should be a public record o who is lobbying and orwhom, not a complete regulator or the industry.

The Government believes this should be sucient to address concerns about a lack o transparency. Itdoes not believe that there should be a statutory code o conduct or lobbyists linked with the register.This would potentially impose costly and unnecessary regulation on the industry, their clients, and theGovernment.

The Governments initial proposals or consultation are set out below. The next section o thisconsultation paper discusses in more detail the reasons or these proposals.

How a register might work

A lobbying rm would be required to update the register quarterly with:

registered address o the company and Company Number

names o employees engaged in lobbying

whether those employees are ormer ministers or senior civil servants

client lists

This should be no more burdensome than lling out an online orm.

A sel-employed lobbyist would be required to update the register quarterly with his details and hisclient list.

Members o the public accessing the register should be able to easily see details o lobbying rmsand their employees, as well as who has employed those lobbying rms. Because Governmentdepartments already publish lists o their external meetings there is no need to provide urtherinormation about specic contacts with Government.


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Defnition

Lobbyists should mean those who undertake lobbying activities on behal o a third party clientor whose employees conduct lobbying activities on behal o a third par ty client.

It may also include cer tain other categories o person ollowing consultation.

It should not mean those who engage in lobbying activities on their own behal rather than or aclient.

Inormation

The inormation on the register should consist o the company registration details; the names othose persons employed, contracted or otherwise engaged to carry out lobbying and whether

that person is a ormer Minister or senior civil servant.

The inormation should also include a list o clients on whose behal the lobbyist carries outlobbying activities.

The inormation might also include limited nancial inormation.

It should not include details o meetings with Ministers, which are already made available by eachGovernment Department on www.data.gov.uk

Scope

A register should include those who lobby the UK Government and UK Parliament.

We will now be taking orward discussions with a view to including the DevolvedAdministrations and Legislatures within the scope o a statutory register.


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4. Questions For Consultation

The key questions or this consultation exercise are:

The denitions o lobbyingandlobbyists;

Who should and should not be required to register ;

What inormation should be provided in the register;

How oten should the register be updated;

How should the register be unded;

What sanctions might be appropriate;

Who should run the register?

Defnitions

The scope o the register will in large par t be set by the nal denition o lobbying and lobbyist. There

is presently a denition o lobbying and lobbyists which was created by the UK Public Aairs Council(UKPAC) or use in their voluntary register. The UK Public Aairs Council was created by the three mainindustry bodies, as an independent institution, tasked with maintaining a voluntary register, as a response

to the recommendations o the Public Administration Select Committee (PASC) report on lobbyingin 2009. More detail on the operation o UKPAC and the voluntary register can be ound in Annex A.The denition was created or use with this voluntary register ollowing internal consultations within theindustry.

The UKPAC denitions currently have eect in respect o a voluntary register, which is not backed bystatute and which is not open to legal interpretation or challenge in the same way that a denitionenshrined in law would be. A discussion o this denition can be ound in Annex A, part 1, but the

Government does not eel it is appropriate or a statutory register. This is because we eel it does notstrike the r ight distinction between proessional lobbying and activity and normal interaction betweenindividuals or businesses with Government Ministers and ocials, and Parliamentarians.


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The Lobbying Disclosure Act in the United States o America excludes rom its denition o a lobbyistanyone whose lobbying activity takes up less than 20 per cent o their working time over a three-monthperiod. Problems have been reported with the operation o this exemption. Diculties include knowing

when the 20 per cent threshold is passed and encouraging people seeking to keep their lobbying secretto claim they were oering services such as legal, communications or strategic advice and notlobbying. A similar threshold is not proposed or the UK register.

A denition along the lines o that in the Australian Lobbying Register might be more appropriate. Thatdenition can be ound in Annex A, part 2, but in brie it limits the requirement to register to thoselobbying on behal o a third party, with a wide range o exclusions or charities, church groups and otherorganisations.

This denition has a ocus on what is not covered by the register and raises a number o questionsabout exemptions to the duty to register in the UK.

Should in-house lobbyists be covered? Many large companies have employees whose mainduties are to lobby on behal o that company. The Government proposes that only thoselobbying on behal o third parties should be covered by the Register. Given that is clear whoseinterests they represent, it is not evident that an extension o the register to in-house lobbyistswould provide any additional transparency.

Should lobbyists or rms acting on a pro bono basis have an exemption rom the duty toregister?

Should organisations which engage in lobbying on behal o interest groups such as Think Tanks

and Charities be required to register? I so, how might this be captured in the denition olobbying or lobbyist?

The Government does not wish to discourage the normal activity between constituents andMPs. Should there be an explicit exemption included in any denition?

Trade unions may have an interest in government policies or other issues o the day. It is not unusual ortrade unions to campaign on behal o their members in avour o particular public policies. Some tradeunions maintain a political und. This is a separate account which the trade union can use to providenancial support or a political party. For example, they could donate to a party or particular politician,

produce leafets in support at an election, or support any party conerence costs.

Should Trade Unions be required to register? I so, how might this be captured in the denitiono lobbying or lobbyist?

Government

Those working within government, whether the UK government, devolved administrations or localgovernment, are oten involved in negotiations over the impact o initiatives or services, or example

to make sure that the needs o a particular community are properly taken into account. Few wouldconsider this amounted to lobbying but, or the sake o clarity, it is proposed that discussions between

dierent arms or levels o government should not trigger a requirement to register.


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The revised Code o Recommended Practice on Local Authority Publicity2 makes it clear that Councilsshould not spend taxpayers money to lobby Government through private sector lobbyists.

The document Rules on Lobbying or Non Departmental Public Bodies3

states that Non-departmentalPublic Bodies must never employ external rms or consultants to infuence or attempt to infuenceParliament, Government or political parties.

The Government is interested in hearing your views on the defnitions to be used or the register. The

Governments intention is to increase transparency without adversely aecting normal public participation inthe development o Government policy. Do you have any comments as to how the proposals might adverselyaect public participation or how public participation can best be saeguarded? Do you agree with theproposed inclusions and exemptions? I not, why not? What do you suggest instead? What do you think theimpact o registration on lobbyists and lobbying frms might be? Will it adversely aect the industry?

Inormation to be included in the register

The Governments overall approach towards regulation is that it should be carried out only where it isclearly justied and, where it is, it should keep the requirements to a minimum in order to avoid creatingunnecessary burdens or costs. The Government believes a statutory register is justied and that making

the process as simple and straightorward as possible will both encourage participation and minimiseburdens. The Ministerial Code contains a requirement at 8.14 to publish, at least quarterly, details oMinisters external meetings.

Our initial proposal is that a register should include inormation about the names o individuallobbyists and lobbying frms and the names o their clients. In addition, we propose that the registershould include whether a lobbyist was previously a Government Minister or a Senior Civil Servant.The Government does not propose that any inormation on meetings should be included in aregister. Details o meetings between Ministers and third parties are already published regularly, andthe Government eels the provision o duplicate inormation in a statutory register o lobbyists isunnecessary.

Financial inormation

Some believe that nancial inormation, or example, how much a lobbyist is paid to represent a certaininterest, should be published in the register.

While this would undoubtedly shine extra light on lobbying activity, the Government is not persuadedthat requiring nancial inormation would be justied. It is more important to know who is lobbying andor whom than to know the cost. Signicant diculties could arise rom the need to provide nancialinormation. It might also orce companies to reveal sensitive commercial inormation, or example, thatdierent clients were charged dierent rates, which could undermine their business.

For these reasons, the Government is not proposing at this stage to require detailedfnancialinormation but is interested in your views on whether inormation should be required on the broadvalue o the work carried out. For example, registrants could declare that they received remunerationin bands indicating the overall scale o the services they are providing. MPs are required to give details o

2http://www.communities.gov.uk/publications/localgovernment/publicitycode2011

http//www.cabinetoce.gov.uk/sites/deault/les/resources/ndpbs-lobbying.pd3


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remuneration, or any outside activities, in bands o 5000, e.g. 0-5,000, 5,001-10,000 etc. Would thissystem be appropriate or would it place an undue burden on those required to register?

The Government is interested in your views on this issue. In particular, i you avour the inclusion o fnancialinormation, what would be the best ways o saeguarding commercial sensitivities and keeping down the costand burden o providing the inormation to the absolute minimum?

The European Transparency Register requires registrants to declare the amount and source o anyunding received rom EU institutions. The Government proposes that UK lobbyists should have asimilar responsibility, and intends to require them to declare what public unding they have receivedand rom what source in the most recently completed nancial year at the time o initial registration oro renewal. This will help ensure that the public know more about the way in which its money is spent.Do you agree with this proposal?

How oten should the register be updated?

US lobbying legislation requires quarterly returns. Canadas requires some aspects to be updatedevery month while the European Transparency Register is updated only annually. Meanwhile, in the UK,Ministers are required to publish inormation on gits (received or given), hospitality, travel and meetingswith external organisations on a quarterly basis. Our initial proposal is that quarterly updates shouldalso apply to the inormation held in the register o lobbyists.

Do you agree with these proposals? I not, why not? What do you suggest instead?

Should there be any additional unctions linked to the register?There is a choice to be made as to how active the operator o the register should be in respect o

the inormation it contains. For example, should the operator have the responsibility or veriying theinormation received, or or investigating anomalies or suspected non-disclosures?

The Government proposes that the operator should, in conjunction with the industry and otherinterested parties, including, or example, representatives o the media and o groups seeking greaterreedom o inormation, decide on the ormat or ormats in which inormation is to be provided andpublished. The operator should take reasonable steps to check that it has accurately reproduced theinormation those registering have supplied, and work with them to improve the overall quality anduseulness o their entries. However, ultimate responsibility or the inormation published should liewith those required to register and not the registers operator. For this reason, it is not proposed that

the operator should be given the responsibility or power to carry out investigations or audits o theinormation or publication.

The Government notes that UKPACs key unctions include a number that relate to the conduct olobbying. In its report on lobbying, PASC called or a code o conduct or lobbyists.

The Government supports the industrys eorts to improve lobbying practice, and to develop a codeo conduct that helps lobbyists perorm to the highest possible standards. However, it thinks that this isa matter or the industry itsel, not or the operator o the register. The register should be a register o

activity, not a complete regulator or the industry.


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Do you agree with these proposals? I not, why not? What do you suggest instead?

How should the register be unded?

Public nances are under unprecedented pressure at the moment, and there are no public unds setaside or a register. The Government proposes that the cost o running the register and meeting anyancillary costs arising rom it should be met on a sel-unding basis by the lobbying industry. Experienceo other registers (see Annex A or examples) suggests that individual registration, in return or an initialand then annual registration ee, provides a practical and eective basis or unding a register.

The actual cost o running the register would depend on how many registrants there were, the range oinormation the register held, how oten it was updated and what (i any) ur ther responsibilities, such as

the policing o industry standards, the registers operator was given.

Do you agree that those involved in lobbying should und the register? I not, why not, and what would bea better solution? At what levels might ees be set in order to eectively und the register but not createan undue burden on the industry? Would this be aordable or small businesses? Should there be income-contingent ees to reduce the burden on businesses with small turnovers?

What sanctions would be appropriate?

Most regulatory regimes are backed by a range o sanctions, criminal and civil, to encourage compliance.In the United States, the penalties or ailure to comply with the Lobbying Disclosure Act can be eithera ne o up to $200,000 and/or imprisonment o up to ve years. Under the Australian model, theonly sanction available or non-compliance is deregistration. This has the eect o preventing a lobbyist

rom engaging in lobbying activities with Government representatives, but there are no other penaltiesavailable.

The Government hopes that the lobbying industry will embrace the register and take steps to makelobbying more transparent but believes that penalties should be available or non-compliance. Non-compliance might all into a number o categories; not registering/reusing to register ; registering late ornot updating inormation or providing incorrect or incomplete inormation.

The Companies Act 2006 contains provisions in respect o the duty to le accounts and reports. Theseprovisions might provide suitable benchmarks or any prospective oences in respect o the register olobbyists. There are similarities between these duties and the proposals or the duty to register. Section451 o the Act creates oences aroundDeault in fling accounts and reports4. Failing to le accountsand reports by the required time can result in the companys directors receiving a ne o up to 5000.Knowingly or recklessly making a statement that is misleading, alse or deceptive is a more seriousoence that can result in higher nes, imprisonment o up to two years, or both5.

The Government is interested in hearing your views on whether sanctions should apply to the duty to register.I so, what should they be, criminal or civil?

Who should run the register?

The Government aims to increase transparency and trust as a result o a register o lobbyists. Anyincrease in public trust will be in par t dependent on whether the register is seen as reliable and

4Companies Act 2006, s451. Available at: http://www.legislation.gov.uk/ukpga/2006/46/section/451

5Companies Act 2006, s1112. Available at: http://www.legislation.gov.uk/ukpga/2006/46/section/1112


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complete, as well as independent o the lobbying industry. One way to achieve this is or the register olobbyists to be managed and enorced by a body which is independent o the lobbying industry, and alsoo Government.

Do you agree that the register should be managed and enorced by an independent body?

I you agree, there are a number o options as to who should operate the register :

creating a new organisation expressly or this purpose;

extending the remit o an existing Parliamentary body to take it on or

extending the remit o a non-departmental public body to run the register.

Your views on the best solution are invited.

Whoever holds and operates the register, the Government believes that it should publish regular (atleast annual) reports on its operation, including any diculties encountered in ensuring it providescomprehensive and accurate inormation on lobbying.

What are your views on who should run the register?


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5. Summary Of Questions

The key issues on which your views are invited are summarised below.

Defnitions

What denition o lobbyingshould be used?

How should lobbyists be dened?

ScopeShould lobbyists or rms acting on a pro bono basis be required to register?

Should organisations such as Trade Unions, Think Tanks and Charities be required to register?

How can public participation in the development o Government policy best be saeguarded?

Inormation to be included in the register

Should the register include fnancial inormationabout the cost o lobbying and about anypublic unding received?

Frequency o returns

Should returns be required on a quarterlybasis?

Additional unctions

Should the registers operator have any additional unctions besides accurately reproducing anduseully presenting inormation provided by the registrants?

Funding

Should the lobbying industry meet the costs o the register and any associated unctions?


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Sanctions

Should penaltiesor non-compliance apply? I so, should they be broadlyaligned with those oroences under company law?

The registers operator

Who should run the register a new body or an existing one? What sort o body should it be?


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Annex A

1. Background

The Public Administration Select Committee (PASC) launched an inquiry into the Lobbying Industry in2007, publishing a report in January 2009 which called or a statutory register o lobbying activity.6

In that report, PASC identied ve key principles or a register o lobbying activity:

It should be mandatory, in order to ensure as complete as possible an overview o activity.

It should cover all those outside the public sector involved in accessing and infuencing public-sector decision makers, with exceptions in only a very limited set o circumstances.

It should be managed and enorced by a body independent o both Government and lobbyists.

It should include only inormation o genuine potential value to the general public, to otherswho might wish to lobby government, and to decision makers themselves.

It should include so ar as possible inormation which is relatively straightorward to provide-ideally, inormation which would be collected or other purposes in any case.

The Committee additionally proposed that the ollowing inormation would need to be provided bylobbyists and by the targets o their lobbying in order to abide by these principles:

The names o the individuals carrying out lobbying activity and o any organisation employing orhiring them.

In the case o multi-client consultancies, the names o their clients.

Inormation about any public oce previously held by an individual lobbyist.

6Lobbying: Access and Infuence in Whitehall. Available rom: www.publications.parliament.uk/pa/cm200809/cmselect/cmpubadm/36/36i.pd


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A list o the relevant interests o decision makers within the public service (Ministers, senior civilservants and senior public servants) and summaries o their career histories outside the publicservice.

Inormation about contacts between lobbyists and decision makers-essentially, diary recordsand minutes o meetings. The aim would be to cover all meetings and conversations betweendecision makers and outside interests.

The then Governments response,7 published in October that year, did not accept the case or astatutory register, preerring more robust sel-regulation instead, but did accept recommendationsin other areas, mostly concerning the publication o meetings and hospitality received by senior civilservants and Ministers when dealing with interest groups.

The lobbying industry responded to the report by establishing the Public Aairs Council Working Party,

chaired by Sir Philip Mawer, which was tasked to produce proposals or a sel-regulatory body. In March2010 the three main lobbying industry bodies the Association o Proessional Political Consultants, theChartered Institute o Public Relations and the Public Relations Consultants Association announced thecreation o the UK Public Aairs Council (UKPAC), an independent not-or-prot body, to carry out ourkey unctions:

To maintain a Register o those engaged in lobbying and o the organisations on whose behalthey lobby;

To hold and review periodically the Guiding Principles covering those who lobby, examining how

a common Code o Conduct enshrining the Principles can be established and keeping underreview any related Codes o member bodies;

To oversee the disciplinary arrangements necessary to enorce the Principles and any commonCode; to allocate complaints against individuals or organisations within member bodies to themost appropriate body; and to review periodically the process through which complaints areconsidered by member bodies; and

To promote with its member bodies high ethical standards in lobbying generally.

UKPAC is overseen by a board comprising three independent members and three industry members.

The three independent members were recruited by a process which complied with the principleso the Nolan rules or public appointments. The board is chaired by Elizabeth France CBE, one o itsindependent members. UKPACs register is operational but is not yet ully populated. It is updated on aquarterly basis. The register can be viewed at www.publicaairscouncil.org.uk.

UKPAC denition o lobbying

Lobbying means, in a proessional capacity, attempting to infuence, or advising those who wish toinfuence, the UK Government, Parliament, devolved legislatures or administrations, regional or localgovernment or other public bodies on any matter within their competence.

7Lobbying: Access and Infuence in Whitehall: Government response to the Committees First Report o Session 2008-09.Available rom: www.publications.parliament.uk/pa/cm200809/cmselect/cmpubadm/1058/1058.pd


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Lobbyists are those who, in a proessional capacity, work to infuence, or advise those who wish toinfuence, the institutions o government in the UK, in respect to:

the ormulation, modication or adoption o any legislative measure (including the developmento proposals or legislation);

the ormulation, modication or adoption o a rule, regulation or any other programme, policyor position;

the administration or execution o a governmental or other public programme or policy withinthe UK (including the negotiation, award or administration o a public contract, grant, loan,permit or licence).

Institutions o government means the UK Government, Parliament, the devolved legislatures or

administrations, regional or local government or other public bodies.

The UKPAC denitions currently have eect in respect o a voluntary register, which is not backed bystatute and which is not open to legal interpretation or challenge in the same way that a denitionenshrined in law would be.

The Government believes this denition is unsuitable or use with a statutory register or a number oreasons:

The concept o attempting to infuence is extremely broad. Canadian experience in respect

o the Lobbyists Registration Act suggests it is dicult to prove the intention behind actions.The more recent Lobbying Act reers more simply to communicating in respect o legislation,policies and the like.

Should a denition o lobbying include people or organisations advising those attempting toinfuence government, as the denition above does? An unintended consequence could be

that, or example, lawyers advising lobbying companies on employment law or a building designexpert helping a campaigning organisation to reduce its energy consumption might be required

to register.

Details o meetings between Ministers and businesses are already made public on

www.data.gov.uk, along with details o other meetings with external organisations. TheGovernment does not believe that there would be any notable increase in transparency byrequiring companies lobbying on their own behal to register.

Following the May 2010 election, the Coalition Government made a commitment to regulate lobbyingthrough introducing a statutory register o lobbyists and ensuring greater transparency.


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2. Examples o other jurisdictions approaches to lobbying regulation

EUROPEAN PARLIAMENT AND COMMISSION

A joint (European Parliament and Commission) European Transparency register, building on earlierseparate registers or the Parliament and Commission, was launched on 23 June 2011 in order toregister and monitor organisations and sel-employed individuals engaged in EU policy-making andpolicy implementation. Registration is ree and is not mandatory, except i seeking a pass to gain access

to the premises o the European Parliament.

Scope

The scope o the register covers all activities carried out with the objective o directly or indirectlyinfuencing the ormulation or implementation o policy and the decision-making processes o the EUinstitutions, irrespective o the channel or medium o communication used. Voluntary contributions andparticipation in ormal consultations on envisaged EU legislative or other legal acts and other openconsultations are also included.

A number o activities are excluded rom the scope o the register, including legal advice, the activitieso social partners (such as trade unions or trade associations) when they are playing an ocial roledesignated under a specic Treaty, activities in response to direct and individual requests rom EUinstitutions or Members o the European Parliament, such as ad hoc or regular requests or actualinormation, data or expertise and/or individualised invitations to attend public hearings or to participatein the workings o consultative committees or in any similar orums.

There are also a number o exclusions or par ticular types o organisation, including churchesand religious communities, political parties, local, regional and municipal authorities, although anyrepresentative oces or legal entities, oces and networks created to represent them, are expected toregister.

Forms o collective activity (or example, networks) which have no legal status or legal personality butwhich constitute a source o organised infuence and which are engaged in activities alling within thescope o the register are expected to register.

Registration is conditional on signing up to a code o conduct that requires transparency over wholobbyists are, who they represent and their aims and objectives. Registrants must keep their register

entry accurate and up-to-date, act honestly and not seek to make others act dishonestly or incontravention o the rules and standards expected o them. They must also not claim any ormalrelationship with the EU or any o its institutions in their dealings with third parties.

Inormation requirements

Inormation must be updated at least annually. In addition to indicating the areas o policy in which theyhave an interest, registrants are required to provide a nancial declaration. The areas it needs to coverdepend on the type o organisation that is registering. Proessional consultancies, law rms and selemployed consultants are expected to disclose the turnover that results rom activities alling within thescope o the register. Registrants must list their clients, presenting them in decreasing order o contractvalue (expressed in ranges). In-house" lobbyists and trade or proessional associations are expected

to provide an estimate o the cost associated with the activities alling within the scope o the register.Other registrants (or example, NGOs and think-tanks) have to publish their overall budget, indicating

their main sources o unding. All registrants must also declare any unding received rom EU institutions.


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Register operator

The Transparency Register Secretariat a joint unit o the European Parliament and EuropeanCommission operates the register.

Sanctions

Sanctions can be imposed or providing or ailing to correct incomplete or inaccurate inormation in theregister or or non-compliance with the code o practice. Sanctions include temporary suspension rom

the register or removal rom it. In the case o removal, a one- or two-year ban on uture registration canbe applied. Removal can lead to the withdrawal o access privileges to the European Parliament.

UNITED STATES

The US has passed a number o laws to regulate lobbying. The central provision in respect o a lobbyingregister is contained in the Lobbying Disclosure Act (LDA) 1995, as amended by the Honest Leadershipand Open Government Act 2007.

Scope

The LDA denes a lobbyist as any individual compensated by a client or services that include more thanone lobbying contact (which guidance explains means more than one communication, and where thereis an attempt to infuence), except any whose lobbying activities constitute less than 20% o their timeover a three-month period. A client is dened as any person or entity who employs and compensatesanother person to conduct lobbying activities on their behal. Groups that carry out lobbying activities

on their own behal must also register.

Any lobbyist whose lobbying expenses exceed or are expected to exceed a specied threshold ($3000over a quarterly period) is required to register once he or she has had a lobbying contact with seniormembers o the legislative or executive branches o the ederal government, or with ocials above aparticular grade.

There are certain exclusions in respect o legal or investigative action.


The law requires lobbyists to le quarterly reports o their activities identiying the name o theregistrant, the lobbyists the registrant employs, the client, the Houses o Congress and ederal agenciescontacted and the issues lobbied over. In addition, the disclosure must include:

A good aith estimate, by broad category (rounded to the nearest $10,000), o the totalamount o lobbying-related income rom the client, or expenditures by an organization lobbyingin its own behal, during the quarterly period;

The specic issues that were the subject o a lobbyists eorts, including to the maximumextent practicable a list o bill numbers;

A statement o the houses o Congress and the ederal agencies contacted by the lobbyist; and


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A list o the employees o the registrant who acted as lobbyists on behal o the client, and adeclaration o any previous employment as a covered executive branch or legislative branchocial in the two years prior to registration.

Register operator

The register is operated by the Secretary o the Senate and the Clerk o the House o Representatives.

Sanctions

Criminal and civil penalties apply to deliberate violations o the Lobby Disclosure Act. In the case o acorrupt ailure to comply, ve years imprisonment can result. For other violations, there can be a ne oup to $200,000

CANADACanadas rst attempt at the regulation o lobbying was the Lobbyists Registration Act, which came intoorce in 1989. The 1989 Act provided or the public registration o individuals paid to lobby public oceholders. However, it contained only basic requirements or lobbyists to register and provide inormation.Changes were made to clariy and strengthen its provisions, and to change the registrars reportinglines, which had originally been to the government, to Parliament. It was comprehensively overhauled,becoming the Lobbying Act, in 2008.

Scope

The Act covers consultant lobbyists (people who are paid to lobby on behal o clients) and two typeso in-house lobbyists, in corporations (commercial businesses) and in organisations (not-or-protorganisations). In-house lobbyists are required to register only where lobbying is a signicant par t o

their work. Guidance on the meaning o a signicant part o a persons duties explains that it is intendedto cover those who spend more than 20% o their time on lobbying and/or the relative importance olobbying in the context o their work.

There are exemptions or a variety o activities, including communications restricted to a straightorwardrequest or publicly available inormation, the preparation and presentation o briengs to parliamentarycommittees, the making o submissions on behal o employers in respect o the application orenorcement o ederal laws and routine dealings with government inspectors and other regulatory

authorities.


Inormation requirements include the names o lobbyists and their clients or organisations, theinstitutions being lobbied, the subjects o the lobbying and the methods used, details o any governmentunding received by the client/employer, inormation on lobbyists who used to hold public oce andinormation on communications with cer tain public oce holders, which includes virtually all thoseoccupying an elected or appointed position in the Government o Canada, Members o Parliament and

their sta, and the ocers and employees o ederal departments and agencies.

In addition to the initial inormation provided on registration, returns are required on a monthly basisin respect o any communications with designated public oce holders, the key decision-makerswithin government. They include Ministers, senior ocial and senior members o the armed orces.


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Returns must cover the name and title o the designated public oce holder and the subject o thecommunication.

Register OperatorThe Lobbying Act places the register under the control o the Oce o the Commissioner o Lobbyingo Canada. The Commissioner is an independent agent o Parliament responsible or educationalprogrammes to improve public awareness o the Acts requirements as well as reviewing compliance.

Sanctions

Knowingly giving alse or misleading statements in returns can result in a ne o up to $200,000 or twoyears imprisonment. Other contraventions are punishable by a ne o up to $50,000.

AUSTRALIAAustralias rst attempt at the regulation o lobbying was the Lobbyists Registration Scheme, which wasintroduced in 1983. The Scheme set up two condential registers: a special one or lobbyists representingoreign clients and a general one or lobbyists representing domestic clients. The Scheme requiredlobbyists to apply to register each time they took on a client and to give a short description o the taskundertaken. As register lobbyists they were then required to produce a letter o acceptance rom theRegistrar whenever contacting minister or ocials about this task. The Scheme was widely acknowledged

to be ineective, with its provisions rarely adhered to or enorced. The Scheme was abolished in 1996.

The Australian Government introduced a Lobbying Code o Conduct and a Register o Lobbyists in

2008. Government representatives are not allowed to engage (knowingly) in lobbying activities withunregistered individuals.

Scope

Lobbying activities means communications with a Government representative in an eort to infuenceGovernment decision-making, including the making or amendment o legislation, the development oramendment o a Government policy or program, the awarding o a Government contract or grant or

the allocation o unding, but does not include:

communications with a committee o the Parliament;

communications with a Minister or Parliamentary Secretary in his or her capacity as a localMember or Senator in relation to non-ministerial responsibilities;

communications in response to a call or submissions;

petitions or communications o a grassroots campaign nature in an attempt to infuence aGovernment policy or decision;

communications in response to a request or tender;

statements made in a public orum; or

responses to requests by Government representatives or inormation.


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Lobbyist means any person, company or organisation who conducts lobbying activities on behal o athird party client or whose employees conduct lobbying activities on behal o a third party client, butdoes not include:

(a) charitable, religious and other organisations or unds that are endorsed as deductible gitrecipients;

(b) non-prot associations or organisations constituted to represent the interests o theirmembers that are not endorsed as deductible git recipients;

(c) individuals making representations on behal o relatives or riends about their personalaairs;

(d) members o trade delegations visiting Australia;

(e) persons who are registered under an Australian Government scheme regulating the activitieso members o that proession, such as registered tax agents, Customs brokers, companyauditors and liquidators, provided that their dealings with Government representatives are par to the normal day to day work o people in that proession; and

() members o proessions, such as doctors, lawyers or accountants, and other serviceproviders, who make occasional representations to Government on behal o others in a way

that is incidental to the provision to them o their proessional or other services. However, i asignicant or regular part o the services oered by a person employed or engaged by a rm o

lawyers, doctors, accountants or other service providers involves lobbying activities on behal oclients o that rm, the rm and the person oering those services must register and identiy theclients or whom they carry out lobbying activities.


The public Register o Lobbyists contains the ollowing inormation about lobbyists who makerepresentations to Government on behal o their third-party clients:

the business registration details and trading names o each lobbying entity including, where thebusiness is not a publicly listed company, the names o owners, partners or major shareholders,

as applicable;

the names and positions o persons employed, contracted or otherwise engaged by the lobbyingentity to carry out lobbying activities; and

the names o clients on whose behal the lobbying entity conducts lobbying activities.

Lobbyists are required to conrm or update their inormation every six months.

Register Operator

The Register is held and maintained by the Department o the Prime Minister and Cabinet, controlled bythe Secretary o the Department o the Prime Minister and Cabinet.


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Sanctions

Deregistration is the only current sanction available. The Australian Government consulted on amendingthe sanctions in 2010 and decided to leave the arrangements as they were.

3. UK Registers For Other Proessions And Activities

A number o proessional bodies, such as the General Dental Council, the General Medical Council,the Solicitors Regulation Authority and the Architects Registration Board carry out similar unctions inrespect o their proessions.

For example, the General Dental Council (GDC) regulates dental proessionals in the United Kingdom.All dentists, dental nurses, dental technicians, clinical dental technicians, dental hygienists, dental therapistsand orthodontic therapists must be registered to work in the UK. The Dentists Act 1984 makes it

a criminal oence, punishable by a ne o up to 5000, or anyone other than a registered dentalproessional to carry out dentistry. The GDCs unctions include registering qualied proessionals, settingstandards o dental practice and conduct, assuring the quality o dental education, ensuring proessionalskeep up-to-date, helping patients with complaints about a dentist or dental care proessional, andworking to strengthen patient protection.

The GDC cost around 24m to run in 2010. It employed around 140 people, 44 o whom wereconcerned with maintaining the register. Initial and annual retention ees are charged or registration. Theyvary according to the type o work perormed. Dentists must pay 576 per annum (pro rata i joiningpart-way through the registration year) and dental health proessionals 120. There are exemptions orsuitably qualied nationals o other European states.

Around 38,000 dentists and 57,000 dental care proessionals were on the register in 2010. Around1400 cases o problems regarding tness to practise were considered during the year. Nearly 60 percent went on or ur ther investigation. Only two cases concerned practising while suspended rom theregister. Penalties ranged rom being stuck o through to having conditions on practising imposed.

Osted has a very broad range o responsibilities, and cost around 180m to run in 2010/11. It regulateschild care in a number o settings, including early years (children aged up to ve) and general (olderchildren) childcare. Both have registers. The general childcare register is split into a compulsory par t orproviders o childcare or children aged ve to seven and a voluntary par t or providers o childcareor children aged eight and over. Registrants must provide a range o inormation about their activities,including about their qualications and state o premises, in order to secure registration. Childmindersand child care providers cannot provide care beore they receive their certicate o registration andonce on the register they are subject to inspection by Osted. They can be deregistered i problems aredetected and ailure to comply with the registration rules can result in a ne o up to 5000.

In 2010/11, there were 83,739 providers on the Early Years Register. Osted inspects the quality o eachprovider at least once every our to ve years, carrying out 17,500 during the year. Where problems areound, Osted re-inspects within a year to make sure improvements are taking place. There were 856inspections o providers on the Childcare Register. These inspections took place on a random basis orwhen parents expressed concerns about the care provided

In 201011, Osted registered 7,503 new childminders and 2,261 childcare providers on domestic andnon-domestic premises. It investigated 8750 complaints about childcare and childrens social care servicesand in around hal was able to secure improvements and compliance with law without using statutory


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enorcement action. Where providers are not able to meet the required standards or children are at risko harm Osted has the power to suspend registration or to ultimately cancel registration. In 201011Osted cancelled the registration o 39 providers and stopped them rom operating. Osted opened

772 cases as a result o concerns received against registered and unregistered social care providers. In470 cases it was able to secure improvements and compliance with the law without using statutoryenorcement action, and set non-statutory actions in 141 cases. It served 13 enorcement notices (orunregistered provision) and welare and statutory enorcement notices to ensure that unsuitable peoplewere not looking ater young people.

The Ofce o the Immigration Services Commissioner (OISC) regulates immigration advisers. Unpaidadvisers are not required to register (they are listed instead) but paid advisers are. As well as maintainingand publishing the register and list o advisers, the OISC regulates immigration advisers in accordancewith its rules and the standards, receives complaints about immigration advisers, promotes good practiceand prosecutes people operating outside the regulatory scheme.

Not all immigration advisers are regulated by OISC. Members o cer tain proessional bodies (such as theBar Council and Law Society) may give immigration advice without registering with OISC.

The OISC employed around 60 people during 2009/10 and cost around 4.2m to run. It chargesregistration ees (which apply only to paid immigration advisers), by reerence to the type o work

they do. Those providing the most basic level o advice are charged 595 or initial registration andsubsequent continued registration. Organisations providing more complex services such as caseworkand advocacy pay ees that relate to the number o advisers employed. Those employing up to ouradvisers pay 1750 or the initial registration and 1290 or continued registration, those with ve to

nine 1960 and 1600 and larger organisations 2370 and 2115 respectively.

The total number o registered organisations in 2009/10 was 1733. 147 investigations were completedduring the year. 26 convictions, with punishments including nes and prison sentences, and 9 cautionsresulted.


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Annex B: Code of Practice on Consultation

This document and the consultation process have been planned to adhere to the Code o Practice onConsultation, and are in line with the consultation criteria, which are:

Formal consultation should take place at a stage when there is scope to infuence policyoutcome.

Consultation should normally last or at least 12 weeks with consideration given to longertimescales where easible and sensible.

Consultation documents should be clear about the consultation process, what is beingproposed, the scope to infuence and the expected costs and benets o the proposals.

Consultation exercise should be designed to be accessible to, and clearly targeted at, thosepeople the exercise is intended to reach.

Keeping the burden o consultation to a minimum is essential i consultations are to be eectiveand i consultees buy-in to the process is to be obtained.

Consultation responses should be analysed careully and clear eedback should be provided to

participants ollowing the consultation.

Ocials running consultations should seek guidance in how to run an eective consultationexercise and share what they have learned rom the experience.


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Documents

Introducing a Statutory Register of Lobbyists