MPs face second income ban as lobbying scandal returns

The Conservatives have withdrawn the party whip from Sir Malcolm Rifkind amid claims he breached parliamentary rules in a cash-for-access controversy resulting from an undercover sting operation.

Sir Malcolm was removed from the party hours after another former foreign secretary Jack Straw was also suspended from the Labour party after he too was filmed by reporters lobbying on behalf of a fake Chinese company.

Mr Straw boasted of operating “under the radar” to use his influence to change European Union rules on behalf of a commodity firm which paid him £60,000 a year while Sir Malcom, is said to have claimed that he could arrange “useful access” to every British ambassador in the world because of his status.

Both men have denied any wrongdoing and have referred themselves to the Parliamentary Standards Commissioner. Mr Straw has suspended himself from the Labour Party while he fights to clear his name.

Sir Malcolm, who chairs the parliamentary committee which oversees Britain’s intelligence agencies, met reporters at the fictional firm’s office in London’s Mayfair in January, where he is said to have told them he could meet “any ambassador that I wish to see” in the capital.

“They’ll all see me personally,” he said. “That provides access in a way that is, is useful.”

In a second meeting, Sir Malcolm was said to have suggested that he would be willing to write to ministers on behalf of the company without declaring the name of the firm.

During the meetings, Sir Malcolm is said to have described himself as being “self-employed”, saying “nobody pays me a salary”. He is said to have discussed his usual fee for his services as being “somewhere in the region of £5,000 to £8,000” for a half a day’s work.

Mr Cameron declined to say whether he believed Sir Malcolm should stand down from his ISC position during his suspension from the Parliamentary Conservative Party, stressing that the chairman was selected by the committee’s members and not the Prime Minister.

“I can’t interfere with that - it is a matter for the committee and the House of Commons,” said the Prime Minister.

Labour leader Ed Miliband has written to the Prime Minister urging him to follow Labour’s lead by banning his MPs from taking directorships and consultancies, and floating proposals for a cap on outside earnings.

And the Labour leader also revealed he is consulting on legislation to put the ban into law for all MPs and to impose a cap on outside income similar to that in place for members of Congress in the US, who may earn no more than the equivalent of 15% of a minister of state’s salary on top of their pay.

The Prime Minister rebuffed Mr Miliband’s proposals, saying a ban would mean a parliament packed with professional politicians.

“I think we do have very clear rules and they need to be properly enforced.

“I don’t favour a complete ban on all outside jobs or interests. I think Parliament is enriched by the fact that we have, whether it’s a GP doing some time in a practice, a minister who’s actually an obstetrician or people who have small businesses or sit on other businesses and draw some interesting experiences from that that they can bring to the House of Commons.”