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Richard Ritchie: In-house, employee lobbyists are different


Richard Ritchie is Enoch Powell’s archivist and is a former Conservative Parliamentary Candidate. He was BP’s director of UK Political Affairs.

When I looked after BP’s UK Government Affairs team – and I did the job throughout the Blair, Brown and Cameron years – I never liked the word ‘lobbyist’. Though I realise that, to many people, that’s what we were. But while it was our job to advance BP’s interests within Whitehall, we performed this role entirely differently from a paid lobbyist acting for various clients ‘for hire’. Amidst the current controversy, it is a great mistake to assume that by requiring in-house employee lobbyists to register, anything beneficial would be achieved. In-house lobbyists are a different breed.

I always thought we were more akin to civil servants than lobbyists. Often, our most important advice was offered internally, and our main role was to understand the political dimensions of any commercial decision and advise our managers accordingly. Although most businessmen think they understand politics, those at the top very seldom do. They tend to resemble disgruntled and angry members of a golf club who are convinced that, if only they were running the country, all would be well. Such people never liked to be warned that a commercial decision might attract political criticism. Their conviction that the action was rational, and in the shareholders’ interests, was sufficient justification. But the internal lobbyist’s job was to advise senior management that this wasn’t necessarily the case, and this required someone with political rather than commercial instincts.

This could mean telling senior managers they were mistaken, rather like an external lobbyist informing a client that he is wrong and wasting his money. If that means losing the client, an external lobbyist might think twice before giving such advice. Maybe that happens sometimes. But it’s more likely that a lobbyist will go along with what the client wants, even though it may be unrealistic and politically naïve. Proffering such advice could be difficult for the in-house lobbyist too, especially when the budget of the Government Affairs department is seen as an additional cost by those engaged in profit-making activities. Occasionally, one heard of the concept of ‘lobbying-for-profit’ as a means of justifying the commercial existence of a government affairs department to those who were sceptical of its role. But I always felt that the greatest service I might have performed for BP was to help avoid (or mitigate) costly political mistakes, rather than add directly to shareholders’ dividends.

That is why sometimes our best advice was to “do nothing.” Because we weren’t client-driven, it was much easier for us to give internal advice which might be unpopular with our bosses but which was politically realistic. Our jobs did not depend on ‘winning business’ from outside, but rather on retaining the respect of those whom we advised internally. Like civil servants, we were there to point out the dangers, but also to offer suggestions on how best to steer through commercial decisions which might be politically sensitive.

Sometimes, we were required to fulfil an advocacy role. There are always instances when amending legislation or reducing a tax will benefit a company or industry. But when this was required, the manager or director concerned normally had greater credibility with the Government than any lobbyist. Or rather, the director became the lobbyist, which raises another flaw in the requirement for employee lobbyists to be registered. In the case of a company like BP, would the CEO have to sign up to the lobbyist register? Invariably he or she is the person who will convey the important messages, not the ‘lobbyist’ who advises and frames them.

Moreover, it’s a two-way exchange. For example, when I was at BP, North Sea taxation was a contentious issue for any Chancellor and the subject of numerous reviews and consultations. My impression was that the Treasury wanted to speak to oil companies as much as oil companies wished to speak to the Treasury. However much our interests may have diverged, it was never in the Government’s interest to devise complicated legislation without a technical understanding of the effect it would have on commercial decisions to develop, or not to develop, the North Sea. The Treasury and other Government departments were just as likely to seek out BP’s views, as BP was likely to wish to communicate them. My experience was that it was best to acknowledge when our interests didn’t coincide, and simply to explain how a piece of proposed legislation would affect us.

For the oil industry, perhaps the area where most suspicion existed was over climate change and the need for ‘green’ policies. Companies differed in their approach. In those days, Exxon was the most sceptical of the need to curtail fossil fuel development, while BP under John Browne was championing ‘Beyond Petroleum’. This was as much about strategic direction as image, and clearly it had an impact upon how the respective companies advanced their positions to government. But neither company was secretive about its position. And I know that both positions were fully debated within their own companies in which the respective Government Affairs Departments were engaged. But ultimately it was the CEO who decided and advanced the case to government – and no register of interests would have made any difference as it was already public knowledge where the companies stood.

When David Cameron spoke of lobbying as the next big scandal to happen, he was referring rightly to the lack of transparency prevailing at the time. It is easy for the issue of lobbying to become confused with freedom of information, and the extent to which private conversations between the Chairman of a large company and government have a right to be kept confidential. If David Cameron had been required to register as an in-house’ lobbyist, it’s unclear what practical difference this would have made. If a company hires a senior politician or civil servant once they leave the public sector, there is no secret why it does so. It wishes to benefit from that person’s experience both of issues and people. It will probably be more effective if the person in question is simply paid directly for his services, rather than as the recipient of future share options. That, again, is a different issue.

But for the lobbying industry as a whole, away from the famous personalities, there is a distinction between those who do the work openly as an employee of a private company and those who work for a range of clients, sometimes beneath the radar. If it is to become a requirement for any employee of a company who speaks to the Government to register as a lobbyist, it will be hard to escape the reality that “we are all lobbyists now.”





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