Peers face standards watchdog

Lord Neill is turning his eye to the Lords

An inquiry is being launched into the conduct of the House of Lords with a possible move towards establishing a full register of Peers' interests.

The government's standards watchdog, the Neill Committee, will decide whether peers should be governed by a code of conduct and obliged to register all outside earnings, as MPs must already do.

The investigation comes in the wake of the row over last week's appointment of working peers, including the controversial Tory party Treasurer Michael Ashcroft, and takes place as the government's plans for a fully reformed House of Lords remain unclear.

Lord Neill told the BBC his inquiry would be examining the "marked disparity" between the tough rules in the Commons and the more lenient regulation in the Lords. He is also expected to investigate the effects of lobbying on Peers.

Lords should always act on their personal honour and never accept any financial inducement as an incentive or reward for exercising Parliamentary influence.

Peers' voluntary code

He said that where differences exist between the Commons and the Lords, those differences would have to be a "reasonable and natural" or they would face change.

Lord Neill also said he was keen to examine the possiblity of setting up a new system of regulation while the debate on the Lords' future was still under way.

"The hereditaries were removed and the House is in an interim stage," said Lord Neill.

"That makes it a good time to look at the rules before the new system of election or appointment is decided."

He also pointed out that as the House of Lords is increasingly defying the will of the Commons, it was high time that this key part of the UK's legislative machinery was examined.

The first stage of the inquiry will see the publication of a consultation document, followed by public hearings and the production of a report.

In 1995 Parliament set up a register of peers' interests and it was agreed that peers who accept payment for providing parliamentary advice or services should not speak, vote, lobby or otherwise take advantage of their position as members of the House on behalf of their clients.

This restriction does not extend to matters relating to the outside employment or directorships of peers, where the interest does not arise from membership of the House of Lords.