Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill
(Limited Text - Ministerial Extracts only)
Read Full debate18:59 - The House divided: - Ayes: 243 / Noes: 313 - Question accordingly negatived.
19:14 - The House divided: - Ayes: 309 / Noes: 247 - Question accordingly agreed to.
19:27 - The House divided: - Ayes: 0 / Noes: 0 - Question accordingly agreed to.
The Leader of the House of Commons (Mr Andrew Lansley)
I beg to move, That the Bill be now read a Second time.
As a coalition Government, we inherited a legacy of a lack of trust and confidence in our political system. [Interruption.] I am surprised that Labour Members would laugh at that thought, as they were responsible for 13 years of it. To tackle this, we have sought to be the most transparent Government in history. We are the first Government to publish details of meetings that Ministers and permanent secretaries have with external organisations, of our gifts and hospitality and of departmental business plans, as well as a wide range of raw data.
The Bill takes practical steps to take those principles forward. It implements our coalition commitment to introduce a statutory register of lobbyists, providing transparency in who lobbies whom, and for whom.
Mr Tom Harris (Glasgow South) (Lab)
Will the Leader of the House place in the House of Commons Library the results of the public consultation that he has carried out on the Bill?
Mr Lansley
I am surprised that the hon. Gentleman is unaware of two things: first, that a consultation took place on the issues relating to a statutory register of lobbyists in January 2012 and, secondly, that the Labour party did not respond to that consultation, so seriously did it take it.
The introduction of a statutory register of lobbyists will fulfil a commitment made in “The Coalition: our programme for government”. There are two key principles reflected in the Bill. The first is that transparency is central to accountability and that the public should be able to see how third parties seek to influence the political system. The second is that third parties should act in an open and accountable way. The Bill will give the public more confidence about the way third parties interact with the political system, including about how much money they spend on political campaigning, especially if they seek to influence elections directly.
Tracey Crouch (Chatham and Aylesford) (Con)
As a proud former lobbyist, both in-house and in consultancy—indeed, I learned my trade in the same firm in which Mr Speaker himself had worked—I fully appreciate the value that the industry brings to inform and educate Members of Parliament, often on very technical issues. Having worked for many charities and voluntary organisations, too, I recognise their concerns about this Bill, so will my right hon. Friend explain how or why the Bill will not, as many fear it will, gag them, but will allow them to continue their excellent work of informing MPs as a healthy part of the democratic process?
Mr Lansley
I am grateful to my hon. Friend. It must have been a fine training ground indeed that she shares with you, Mr Speaker. I will, of course, come on to explain in detail how aspects of the non-party campaigning provisions will work, but let me give this assurance. We are very clear that we are in no sense seeking substantively to change the boundary between campaigning on policies and issues, which charities and other third parties do to a substantial extent, and being required to register spending for electoral purposes—[Interruption.] We are not proposing to change the boundary, so charities, think-tanks, non-governmental organisations and campaign organisations should not be alarmed that this Bill will impact in any sense on their ability to campaign on policy issues.
Mr Lansley
All right, all right. I have given way before and will do so again. The hon. Member for Hampstead and Kilburn (Glenda Jackson) was the first to rise, so I give way to her.
Glenda Jackson (Hampstead and Kilburn) (Lab)
I am grateful to the Leader of the House, and I am quite delighted to have the opportunity to burst his bubble of confidence, because his Bill has created almost a fire-storm in my constituency. My constituents are appalled at what they regard as a gagging Bill. They wish to see a list of lobbyists that is transparent to ensure that Government cannot be bought—even though that is a debatable issue. They know that the Bill as it stands would prevent democratic voices from being heard.
Mr Lansley
I look forward to the hon. Lady having an opportunity after today’s debate to go back to her constituents to tell them that the things they are alarmed about will not happen. I am very clear and the Bill is very clear. [Interruption.] I will come on to deal with this in more detail later, but let me explain to hon. Members that election law already has a clear provision that determines that if third parties wish to engage in expenditure, the intention or effect of which is to procure electoral success, they are required, beyond a certain point, to register with the Electoral Commission in respect of that expenditure—and there are limits on it: that expenditure is controlled.
At the last election, I think that only a couple of charities registered for this purpose and the levels of expenditure were relatively modest. Other third parties—a larger number of them—that were not charities engaged in such third-party expenditure, but charities by and large did not. That does not mean that they cannot campaign during an election period, because they campaign on policies and issues and they interact with political parties on those issues, and they will continue to be completely free to do so. All the Bill does—it is the right thing to do—is, first, to make sure that the limit is more appropriate for the future so that it does not allow those third parties to engage in distorting activity during elections; and, secondly, to extend the definition of controlled expenditure so that it includes advertising, rallies and such like, as well as electoral material, and to disaggregate the total into parliamentary constituencies so that third parties cannot disproportionately concentrate their spending in individual constituencies. I think that all of that is perfectly rational.
James Duddridge (Rochford and Southend East) (Con)
Is not my right hon. Friend missing the elephant in the room, which is the fact that only two organisations spent over the £377,000 cap? The first, by quite a long way, was Unison. The reason why there is agitation on the Opposition Benches is that they do not like having political expenditure limits on political parties on account of their own parent organisations, the trade unions?
Mr Lansley
As ever, my hon. Friend makes a very good point. It is accurate because at the last election, relatively few organisations—only two, I think—spent a sum of money that was above the proposed limit. It is conceivable that a whole range of organisations might try to spend large amounts of money to influence directly votes for candidates and political parties rather than campaigning on policies and issues. It is important—election law already provides for this—that elections are fought essentially between political parties, and the expenditure undertaken to support candidates of political parties should be authorised by them. That is why many people donate to political parties to support the campaign at a constituency level.
Mr Lansley
If Members will forgive me, I am at risk of dealing with part 2 before I have dealt with part 1. I am going to talk simply about part 1—[Interruption.] I give way to the hon. Member for Wallasey (Ms Eagle).
Ms Angela Eagle (Wallasey) (Lab)
I thank the right hon. Gentleman. Many people would want him to reassure third parties and charities, but he seems to me to be complacent about the issue. The Electoral Commission briefing for today’s debate states that,
“the Bill creates significant regulatory uncertainty for large and small organisations that campaign on, or even discuss, public policy issues in the year before the…general election, and imposes significant new burdens on such organisations”.
Surely, the right hon. Gentleman’s complacent attitude is completely at odds with what the Electoral Commission—his own regulator—has written to all of us.
Mr Lansley
I had conversations yesterday with the National Council for Voluntary Organisations, which helpfully supplied us with a copy of its legal advice, which of course illustrates that, technically, the uncertainties that are being talked about could in large part be construed to relate to existing legislation rather than the Bill that we are bringing forward. In truth, it is the responsibility of the Charity Commission, where charities are concerned, and the Electoral Commission for all third parties, to work together to ensure the soundness of the definitions in the Bill. Frankly, they are substantively the same definitions for electoral purposes—[Interruption.] The definitions on controlled expenditure and on the appropriate limits are changed, but the definition that relates to spending being for electoral purposes if it is intended or has the effect of procuring or promoting support for candidates of political parties is not changed. The Electoral Commission knows that part of its job is to make sure that that boundary is policed, and the guidance on that is very clear.
Mr Lansley
I want to make some progress before giving way again.
As I say, we need to give confidence to the public about the way in which third parties interact with the political system, including about how much money they spend on political campaigning, especially if they seek to influence elections directly. The Bill will also give the confidence that trade unions know who their members are. These are sensible and reasonable steps: we are not setting out to create a burdensome bureaucracy or to deter legitimate campaigning or representation.
Let me deal with part 1 first.
Mrs Cheryl Gillan (Chesham and Amersham) (Con)
Will my right hon. Friend give way?
Mr Lansley
I will give way in a few moments.
Part 1 relates to the creation of a statutory register of consultant lobbyists. Let me be clear, first, that lobbying is a necessary—indeed an inevitable and often welcome—part of policy making and the parliamentary process. We should not seek to prevent lobbying, but to make it transparent who is lobbying whom and for what.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
On that very point, let me assure the Leader of the House that many Opposition Members, particularly myself, believe that lobbying is at the very heart of our democracy. We should have it, but it should be regulated and should be transparent. What worries us is, first, that many charities believe that the Bill will have deleterious effect, but secondly, we are worried about all the people that are left out—the big law firms, for example. Many of those firms are 50% lobbyists and 50% lawyers, yet they will not be tackled by the Bill. Big accountancy firms that are full of lobbyists are the same, as are the in-house lobbyists of these major companies. Why are they being left out of this register?
Mr Lansley
I think we agree about the intention, although I would add that Parliament is at the heart of our democracy and lobbying is an essential aspect of the way in which Parliament does its job. It is clear that Members on both sides of the House have been lobbied extensively in relation to the Bill, and rightly so.
We are not leaving out a large number of people who engage in consultant lobbying. If people have a substantial business involving such lobbying, they should register, and that will be made clear.
Mr Lansley
I should give way first to my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan).
Mrs Gillan
I think every Member would agree with the Leader of the House that we want lobbying to be transparent. As he knows, however, many people all over the country are fighting a project known as HS2, and they firmly believe that the Bill contains provisions that will inhibit their effectiveness in ensuring that their voice is heard by the Government and by Ministers. Will the Leader of the House undertake to give specific consideration to the effect on anti-HS2 campaigns that is apparent from provisions that are already in the Bill, and to ensure, when examining the Bill further, that the voice of those people will never be inhibited by legislation?
Mr Lansley
Let me give my right hon. Friend this assurance. I believe that absolutely nothing in this legislation would prevent those who campaign on issues relating to the High Speed 2 rail route from making their case as forcefully as they wish. However, if at the time of an election they went further and spent money on trying to procure or prevent the election of particular candidates, and if that expenditure exceeded a certain limit, they would quite properly be required, by existing legislation as well as by this Bill, to register and be accountable for it.
Mr Lansley
I shall carry on for a bit, but I will give way again after that. I intend to be generous and open about this.
We agree that lobbying is necessary, but, as was rightly pointed out by the hon. Member for Huddersfield (Mr Sheerman), transparency is key. We want to know who is lobbying, and for whom. However, there is a gap in the current transparency regime. When Ministers meet consultant lobbyists, it is not always clear on whose behalf they are lobbying. We want to rectify that, and the specific aim of the register is to put the information in the public domain.
I am grateful to the Political and Constitutional Reform Committee for its work in examining part 1 of the Bill last year, and for its subsequent scrutiny of the draft version of the entire Bill.
Mr Lansley
Let me apologise to the hon. Gentleman before I give way to him. I think the Committee was irritated by the long delay that took place before the Government responded to the report that it published in June last year. I reiterate our apology for that, although, as the Committee knows, our response had to wait for our policy conclusions, and that took some time. Let me add, however, that in most instances the Committee, and many who have proffered alternative plans, are seeking to do something different from what the Bill sets out to do. They are seeking to regulate lobbying activity, while we are seeking to create a transparency regime so that we can see who is lobbying, but are not attempting to control the industry.
Mr Allen
I thank the Leader of the House for apologising on the Floor of the House for the way in which the Government have treated the all-party Political and Constitutional Reform Committee. I accept his apology, and hope he will be able to help us create a Bill that is viable for all parties.
The Leader of the House mentioned that my Committee had examined part 1 of the Bill. We did not examine part 1; we examined only the consultation document relating to what has become part 1, the reason being that parts 2 and 3 did not appear until one day before the recess.
Mr Lansley
I am not sure what point the hon. Gentleman is trying to make, but Members—especially those who have had the privilege of being in Government—will be aware that Bills often contain more than one specific measure. What is important, and what this Bill accurately reflects, is the Government’s recognition not only of the necessity—as we saw it—for a statutory register of lobbyists that would enable us to see how third parties seek to influence the political system through consultant lobbying, but of the existence of further issues relating to third-party influence in the political system, and the need for assurances in regard to trade unions and the way in which third parties campaign during elections.
Mr Lansley
I will give way in a moment, but let me first pursue the point about those who are trying to regulate all lobbying activity. Having thought very carefully about whether there was a considered or credible basis for taking that much wider action, we concluded that there was not, and that is therefore not our objective in the Bill. I readily accept that some people would like the Bill to be very different. Indeed, the reasoned amendment indicates that the Opposition have suddenly decided that they want to include all professional lobbyists and everything that they do in a register, although they presented no such proposal to the Government last year.
Mr Lansley
I know that the hon. Gentleman presented a private Member’s Bill. The point is, however, that we are not aiming for the creation of the bureaucratic monster that would result from action of that kind. We are aiming for transparency rather than the control of lobbying, the result of which would be the registration of thousands of lobbyists and a requirement for a draconian system of reporting and enforcement.
Jim Shannon (Strangford) (DUP)
The Leader of the House must be well aware that the Bill will catch grass-roots campaigners in the crossfire. Charitable and Christian groups feel that it will disadvantage them, and have pointed out that big parties can spend millions of pounds when they are picking on a little guy in politics. How would the Leader of the House respond to that?
Mr Lansley
Let me repeat, and add to, what I have already said about charities. Charities know, and have told us, that the Charity Commission guidance is clear about the fact that they should not undertake party political activity. To that extent, there are very limited circumstances in which charities might consider it essential, from their point of view, to register their spending as spending for an electoral purpose. I am at a loss to understand how they think the Bill could have an adverse impact on their ability to campaign on policies and issues for their charitable purposes.
The statutory register of lobbyists will require anyone who is lobbying Ministers or permanent secretaries on behalf of a third party and in return for payment to declare his or her contact details and clients on the register.
John Hemming (Birmingham, Yardley) (LD)
Schedule 1 makes an exception for Members of Parliament who lobby on behalf of people living in their constituencies, but does not refer to Members of the European Parliament, Members of devolved Administrations, city councillors and the like. Do the Government intend to require councillors who write to Ministers on behalf of their electorates to register themselves as consultant lobbyists?
Mr Lansley
No. We believe that the position is the same as that relating to Members of Parliament, and that given the nature of what constitutes the business of consultant lobbying, the Bill would not include those who were not involved in that business.
Sir Gerald Howarth (Aldershot) (Con)
I share a concern that has been expressed by others, including my hon. Friend the Member for Wycombe (Steve Baker), who is not in the Chamber at present. Paragraph 1 of schedule 1 effectively repeats a fundamentally important tenet of the House which is enshrined in the 1688 Bill of Rights, namely that anything said in this House shall not be questioned in any court of the land. Paragraph 2, however, qualifies that by stating:
“A Member of Parliament who makes communications…on behalf of…persons resident in his or her constituency does not, by reason of those communications, carry on the business of consultant lobbying. “
I, for example, have an interest in defence. What will happen if I raise the question of a company that is not in my constituency? Will I then be in the business of lobbying? And what about colleagues who raise questions about wind turbines? What protection is provided by the Bill of Rights?
Mr Lansley
My hon. Friend is right: schedule 1 refers specifically to the principles of exclusive cognisance and parliamentary privilege, and does not seek to impinge on them in any way. However, we consider that the normal activities of Members of Parliament could never be considered to be lobbying, and we have included exclusions in the Bill which we believe make it clear that MPs are not included. I am perfectly willing to reassure colleagues that I will continue the conversations I have had with the House authorities, and that I will continue to maintain discussions with colleagues. If there is any doubt about whether Members of Parliament might, in any form in respect of their activities in the House, be included or compromised in relation to this, we will put a specific provision into the Bill to make sure that does not happen. We will be very clear about that.
Mr John Denham (Southampton, Itchen) (Lab)
May I remind the Leader of the House that the reason the Government decided a few months ago to bring forward the lobbying Bill was that they had dropped their proposals for plain packaging of cigarettes following the employment of a paid lobbyist of the tobacco industry as the head of the Conservative party election campaign? Given that that is the origin of this Bill, can the Leader of the House explain why no provisions in this Bill would shed any light or give any transparency on the involvement of Lynton Crosby in these matters?
Mr Lansley
Since I am here presenting the Bill to the House and I was the Secretary of State who initiated the consultation on plain packaging, I am probably in quite a good position to tell the right hon. Gentleman that what he just said was complete tosh.
To ensure—
Mr Lansley
Let us return to the question of the statutory register of lobbyists. To ensure the independence of the system—
Mr Lansley
Sit down. I am not giving way at the moment.
To ensure the independence of the system, the register will be administered and enforced by an independent registrar of consultant lobbyists who will provide guidance on compliance and publish an online register on a quarterly basis. The registrar will have the power to issue information notices to investigate where he or she believes that consultant lobbying is taking place without registration. Where this is found, the registrar will also have the power to impose civil penalties. Criminal sanctions will be available for those guilty of deliberate non-compliance.
The register will be funded by the lobbying industry via a subscription charge, but to reduce the burden on the smallest businesses, organisations that are not VAT-registered will not be required to pay the charge. There will therefore be no impact on the public purse as a result of these measures.
Sir Tony Baldry (Banbury) (Con)
May I return briefly to the point raised by my hon. Friend the Member for Aldershot (Sir Gerald Howarth) and give an example? Richard III is dead; he is clearly nobody’s constituent, yet the hon. Members for York Central (Hugh Bayley), for Leicester South (Jonathan Ashworth) and for Bassetlaw (John Mann) want his bones in their constituency. In campaigning for that, do they need to register under the provisions of the Bill, and if not, what is the purpose of the reference to Members of Parliament’s constituents in schedule 1? Why not simply rely on the protections to Members of Parliament in the Bill of Rights and the Parliamentary Standards Act 2009?
Mr Lansley
We could not simply rely on the parliamentary privilege provisions because they would not extend to all the activities of Members of Parliament beyond those in this Chamber and our activities directly in relation to the House. That is why in the Bill there is, we believe, both a specific exemption in schedule 1—[Interruption.] If the hon. Member for Rhondda (Chris Bryant) were less insistent, he might listen more.
Mr Speaker
Order. May I just politely suggest to the House that, in terms of the orderly conduct of debate, it is probably as well if the Leader of the House responds to one intervention before being aggressively exhorted to take another?
Mr Lansley
Right as ever, Mr Speaker.
To respond to the question asked by my hon. Friend the Member for Banbury (Sir Tony Baldry), we believe there is both the exemption that Members of Parliament are not caught because they are not engaged in the business of lobbying and also the specific exemption in relation to representing constituents, but I will repeat what I have just said: if there is any doubt about this matter, we will come back to the House and put it beyond doubt. So I do not think colleagues should continue the debate about whether Members of Parliament are caught or not, as we will look at that.
Mr Lansley
I will give way first to the hon. Member for Brighton, Pavilion (Caroline Lucas) and then, of course, the Chairman of the Standards Committee, the right hon. Member for Rother Valley (Mr Barron).
Caroline Lucas
(Brighton Pavilion) (Green): The very fact that the Leader of the House is having to say he will come back to the House to address our concerns shows that this Bill is incredibly badly drafted, but the point I want to make is that recent freedom of information requests reveal that Treasury officials met fracking industry representatives 19 times in the last 10 months about their generous tax breaks, yet the public are denied any further details of that lobbying on the grounds that it could prejudice commercial interests. Is the Leader of the House not ashamed that this Bill will drastically curtail the ability of charities to campaign in the public interest on issues such as fuel poverty and energy but do nothing to curb such secretive corporate influencing?
Mr Lansley
Of course the Bill does not constrain the ability of charities to campaign. Let us look back at 2010. Only two charities registered for expenditure for electoral purposes and they spent very little. The campaigning by third parties at the last election was not in any substantial way undertaken by charities. It was undertaken by other third parties—trade unions, companies, campaign groups and so forth. The idea that charities are in any way constrained is completely wrong.
Mr Lansley
Oh, the hon. Gentleman said “please”! Okay, but I will give way to the Chairman of the Standards Committee.
Mr Kevin Barron (Rother Valley) (Lab)
The Standards Committee met this morning and has agreed a report on the implications of this Bill for Members of Parliament, and we are making strong recommendations that paragraph 2 of schedule 1 should be removed and that there should be a sub-paragraph in paragraph 6 stating that any payments we get from IPSA cannot be interpreted as money for lobbying. I hope the Leader of the House will take this into account and make sure the requisite amendments are made before the Bill leaves this House at the end of next week.
Mr Lansley
My colleagues will, of course, take what the Standards Committee has said very much into account, and I think that illustrates, contrary to what the hon. Member for Brighton, Pavilion said, why the Bill has not been badly drafted. This is not the first time this has happened. It happens with every piece of legislation in my experience. Sometimes we have to have belt, braces and a piece of string to make sure everybody is absolutely convinced that we are doing what we intend to do.
Mr Lansley
I will give way to the hon. Member for Rhondda, but colleagues behind me on the Government Benches have also been patient.
Chris Bryant
I am deeply grateful to the Leader of the House for giving way. He says this is all about transparency, but if I have got it right every single member of the public affairs team in-house at BSkyB will be able to visit as many Ministers as they want and every single lawyer employed by BSkyB to advance its case will be able to do so without any need to register. The only person who would have to register would be an independent consultant in a company that solely lobbies. How does that possibly afford greater transparency?
Mr Lansley
It promotes transparency because if a representative of Sky visits a Minister in order to discuss that business, it is transparent that they are doing so in order to represent the interests of Sky. However, if somebody from “XYZ Corporation”, a consultant lobbying firm, visits a Minister in order to discuss somebody else’s business but it is not transparent through the ministerial diary publication who they are representing, that is not transparent. We propose to remedy that by making it transparent.
Sir Peter Bottomley (Worthing West) (Con)
Following on from my right hon. Friend’s exchange with the Green party member, the hon. Member for Brighton, Pavilion (Caroline Lucas), this morning I received a plea from a constituent to stop bullying charities. I asked which ones she was concerned about and she said, “The Green party.” I said it is already covered. She also mentioned 38 Degrees, to which I replied, “That is not a charity”—even though it has wiped from its Wiki-entry the Labour activism of many of its founders.
Mr Lansley
My hon. Friend makes a very good point. The public might well think that many of the organisations that registered for electoral purposes were charities, but in fact they registered because they were seeking to undertake expenditure which would not have been regarded as charitable and would not have been lawful from the point of view of the Charity Commission’s guidance. It is overwhelmingly the case that charitable activity by charities does not constitute expenditure for electoral purposes and therefore is not in any sense constrained by this legislation. There are, however, other organisations that people might think are charities but which are not charities, or charities that set up campaigning arms that expressly do not have charitable status in order for them to undertake that activity. The law is already clear that where they seek directly to influence electoral outcomes, they should register. The Labour party’s reasoned amendment accepts that that is right and there should be such regulation.
Mr Lansley
I am not giving way now. This is an important debate to which I know that colleagues want to contribute, and I want to commence by giving them the chance to hear precisely what the Bill does.
We have heard repeated calls from the Opposition and others saying that the register should be expanded to include so-called “in-house” lobbyists, but what is not clear is what problem such an expansion would solve. As I said to the hon. Member for Rhondda, when a lobbyist from Shell or the WWF, to give typical examples, comes to meet Ministers it is quite clear whose interest they are representing, and these meetings are already publicly disclosed—the public can see that they happen. That is unlike what happens with any such meetings with shadow Ministers, as the Opposition have not committed to publish their shadow ministerial diaries.
In a debate some 10 weeks ago, I asked the hon. Member for Hemsworth (Jon Trickett), who is on the Opposition Front Bench, to consider whether Opposition Front Benchers might like to agree now to publish their diaries as part of this process of openness, but I am afraid that they have not agreed to do so. While I am referring to the Opposition, I must say that I am bemused by their suggestions that we should create an unworkable bureaucracy with spiralling administrative costs without a policy rationale. There is some confused thinking there, and they are attempting to jump on a bandwagon without having considered the implications of their policies—policies that were so important to them that the Labour party did not even respond to the public consultation on our proposals last year.
I am therefore proud that the coalition has introduced a Bill to put in place this register, which is a practical step in an area that the Labour party simply put in the “too difficult” box when in government; it failed to do anything in its 13 years in office. Our proposal addresses a specific problem. It is designed to capture professional consultant lobbyists, and that will include multidisciplinary firms that run consultant lobbying operations—a point important to the hon. Member for Huddersfield, who is no longer in his place. There are exclusions, however, for those operating in a representative capacity, such as the vast majority of trade associations and charities.
I believe that the great majority of those in our Parliament and our political system behave well. But, human nature being what it is, the minority tempted to do otherwise need to know that they cannot engage in sustained, concealed efforts to peddle influence. Their activity will be brought into the open and they must expect to be held to account for their behaviour. Sunlight is the best disinfectant.
Let me turn now to the second part of the Bill.
Andrew George (St Ives) (LD)
My right hon. Friend said that the previous Government had put this issue in the “too difficult to do” box. A lot of those who, like me, were working in the charitable sector before we came into Parliament understand the distinction between being non-party political as a charity and being able to engage robustly in policy debate. However, if this is in the “too difficult” box—or certainly in the “difficult to do” box—and the Electoral Commission has issued a briefing indicating that it is creating regulatory uncertainty, would the Leader of the House agree that the programme for the Bill’s consideration is far too short? Would he agree that the programme motion needs to be rewritten and that this House needs to be given a great deal more time to consider these difficult things—as he says they are too difficult to do in many senses—and to clarify these issues to reassure the charitable and community sector?
Mr Lansley
I am not sure that I agree with the premise of what my hon. Friend says, which was that this is that difficult. Clearly, as I said before, my conversations with the National Council for Voluntary Organisations show that there are existing uncertainties for third parties as to what constitutes expenditure for electoral purposes. The legislation does not clear up those difficulties because it substantively repeats the existing test, so it is important for the Electoral Commission to provide guidance to support it. However, we intend to allocate substantial time for the Bill to be considered.
Mr Laurence Robertson (Tewkesbury) (Con)
The Leader of the House said that consultant lobbyists will have to register whereas in-house lobbyists will not, and I understand that point. May I return to the point made by the hon. Member for Huddersfield (Mr Sheerman). He asked about large accountancy companies and large firms of solicitors who represent a number of clients and frequently, understandably and rightly come to Members of Parliament and Ministers to put forward their point. Is there not a very fine dividing line between those who will be required to register and those who will not? Is my right hon. Friend happy that the person making the judgment on who should have to register could be very easily compromised?
Mr Lansley
I am not sure that it is that difficult. Either one is lobbying on behalf of one’s own organisation or as a representative of an organisation. For example, when I was Secretary of State for Health and I was meeting the British Medical Association, it was clear on whose behalf it was lobbying. If I was meeting a consultant lobbying organisation, it would not have been clear in that way. Where there is any doubt, people will be in a position to ask the registrar for the statutory register whether it is appropriate to register.
Mr Lansley
Let me deal with the second part of the Bill—time will frustrate us otherwise, but I will give way once more before I conclude. Let me explain the second part of the Bill so that the House is clear about what it does and does not do.
It is good that people are motivated to campaign for what they believe in, whether they do it inside or outside a political party. Campaign groups play an important role in the political process. That will continue and it has never been in doubt. The intention of this Bill is to bring greater transparency when third parties campaign in an election. Relevant expenditure on such campaigns will now be more fully recorded and disclosed. To avoid the situation we see in some other countries, where vast amounts of money are spent without any bar or regulation—
Pete Wishart (Perth and North Perthshire) (SNP)
Will the Leader of the House give way?
Mr Lansley
I said that I would give way a little later on. As I was saying, the Bill strengthens the existing limits on the campaign spending of third parties. We have spending limits on parties at elections. That ensures a degree of equality of arms, and we should not see it undermined by distorting activity of disproportionate expenditure by third parties. The limits we are setting—[Interruption.] If Opposition Members would listen, they might understand better what the Bill does. The limits we are setting will allow organisations that want to campaign still to do so. The expenditure thresholds at which third parties are required to register with the Electoral Commission are being lowered. That will allow members of the public better to identify the great number of organisations that exert influence in political campaigns.
The Government’s clear view is that nothing in the Bill should change the basic way in which third parties campaign and register with the Electoral Commission. Currently, third parties register if they are campaigning to promote the electoral success, or otherwise enhance the standing, of a party or candidates. That will stay the same, so the argument made by the campaign group 38 Degrees that the changes stop campaigning on policy areas is not correct. The requirement to register applies only if the spending is for electoral purposes.
Pete Wishart
The Leader of the House will know that in Scotland we very much welcome the contribution of civic society to our democratic debate. He said that the Bill has implications for Scottish parliamentary elections and other elections. Does he know what those implications are yet?
Mr Lansley
We are very clear that this has an impact on the structure of election law in the way described in the Bill, and we will go through that in detail in Committee.
Jeremy Lefroy (Stafford) (Con)
My right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) has mentioned HS2. What happens when specific constituency issues such as those relating to a hospital—I am thinking of my Support Stafford Hospital campaign—only arise during an election campaign and it is not their fault that they arise in an election period?
Mr Lansley
They will be entirely free to campaign on the issues that concern them. The issue is not whether expenditure is being undertaken during an election period but whether the expenditure is being undertaken in an election period and for electoral purposes. Overwhelmingly, campaigning by third parties in an election period is not done for electoral purposes; it is done in order to convey their views about policies and issues. That is perfectly legitimate, it is outwith the definition of “for electoral purposes” and it will not therefore be constrained.
The Bill does change—
Mr Lansley
I will give way again later.
The Bill does change the activities in respect of which spending may count towards the third parties’ spending limits. Those activities are being more closely aligned with the type of expenditure that is regulated for political parties, a change that the independent regulator, the Electoral Commission, advocated to us in June. I understand that that particular provision has caused concern within the charitable sector. Charity law prohibits charities from engaging in party politics, from party political campaigning, from supporting political candidates and from undertaking political activity unrelated to the charity’s purpose. The Bill does not change that.
Charities will still be able to give support to specific policies that might also be advocated by political parties if it helps to achieve their charitable purposes. The Bill does not seek to regulate charities that simply engage with the policy of a political party. It does not prevent charities from having a view on any aspect of the policy of a party and it does not inhibit charities attempting to influence the policy of a party. Such activity would be captured only if it was carried out in such a way that it could be seen also to promote the election of a political party or candidate or otherwise to enhance their standing at an election. The situation is the same as under the current legislation and remains unchanged by this Bill. That is a key point to allay charities’ concerns.
I recognise that the wording of the clause has caused representative bodies to be concerned, and I am keen to continue the discussions with campaigners in which colleagues and I have already taken part. I can reassure them that we are not proposing a substantive change in the test of whether third party spending is considered to be for electoral purposes.
Mike Thornton (Eastleigh) (LD)
I have genuine concerns about the change to the definition of “charitable use”, and particularly about the use of the word “activity” for electoral purposes rather than “materials”. To enable us to support the Bill and the reform, will the Leader of the House assure me that that can be looked at again, with the involvement of the charitable organisations?
Mr Lansley
I can certainly assure my hon. Friend that I and my colleagues—the Deputy Leader of the House and the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Norwich North (Miss Smith), who is responsible for political and constitutional reform—met the NCVO again yesterday. We will continue to do so. Let me reiterate that I am not looking for a substantive change in the test of what is expenditure for electoral purposes, but we are looking for a change, advocated to us by the Electoral Commission, in what constitutes controlled expenditure so that it is not just about election materials but includes activities such as advertising and election rallies.
Mr Allen
The charitable sector is concerned about the issue, first, because the expenditure limits are tighter and will be policed, enforced and regulated in a different way and, secondly, because included in the normal expenditure envelope is stuff that has not been there before, such as staffing. In effect, that reduces charities’ ability to campaign. That is part of the rich diversity of our political life leading into a general election and it is being reduced. If the Leader of the House feels that that is not his intention, I am sure that everyone in the House would welcome clarification by amendment as the Bill makes progress.
Mr Lansley
As I have explained to the hon. Gentleman in his Committee and as I have said to the House, charities do not overwhelmingly undertake expenditure for electoral purposes, so we are not necessarily principally talking about charities. We are talking about third parties—by and large, they are not charities. The Electoral Commission asked us to include a different and wider definition of controlled expenditure to bring it more appropriately into line with the definition of controlled expenditure for political parties. It is not true that this is the first time that staff costs have been included, because staff costs have been included in activity under controlled expenditure up until now.
The point is that if someone is undertaking expenditure for electoral purposes, they should expect to be regulated and proper account should be taken of it.
Mr Lansley
I am now 46 minutes into my speech and I am not going to give way again, because I am going to explain the remainder of the Bill’s provisions—[Interruption.] I apologise to colleagues, but I have to complete the description of what the Bill will achieve.
The Bill also introduces a provision whereby third parties will be permitted to spend only up to a certain amount of their controlled expenditure in individual constituencies. That is to prevent a third party from directing a large proportion of its national spending limit at only a small part of the UK, thereby focusing the full force of the considerable spending available to it on a small geographical location. That would, and indeed does, allow disproportionately large amounts of money to distort election campaigns and the political process.
A number of third parties campaign in a way that supports a particular political party or its candidates. That is entirely legitimate, but it must not be allowed to become a vehicle for evading party spending rules. We believe that it is right that the political party should be able to oversee which organisations offer it significant campaign support. The Bill introduces a new measure that will require third parties that spend significant sums campaigning in a way that can reasonably be regarded as supporting a particular political party or its candidates to be specifically authorised by the political party to campaign in that manner. That spending will then be counted towards both the third party and the political party’s spending limits.
The transparency of the regulatory regime is enhanced by the Bill. When third parties campaign to support political parties, expenditure will now be more fully recorded and disclosed. Donations to third parties will now have to be published in advance of an election, rather than after it. Third parties will have to provide a statement of accounts. Those measures can only be good for maintaining public trust in our political system.
The Bill also clarifies the importance of the role to be played by the regulator, the Electoral Commission. The commission will now have a clear duty to monitor spending and donation controls and to ensure their compliance with the law. We want to prevent our political system from becoming one in which unaccountable groups spend millions attempting to influence the outcome of an election. The Bill is an important step towards achieving that, without undermining the ability of third parties to engage more broadly in the political process.
Let me now turn to part 3. Trade unions are influential participants in public life. They have an important role representing members’ interests both with specific employers and in wider public debate. The Government support that role. We also believe it is important that the public is confident that, when a union decides how to exercise its influence, all union members may choose to play a part. That is what the third part of the Bill is about. It will require trade unions visibly to demonstrate that they know who their members are and can contact them. The principle that unions must be able to contact their members is well established in legislation. We are building on an existing duty for unions to maintain an accurate and up-to-date register of members’ names and addresses.
Steve Brine
It seems perfectly sensible to ask the unions to keep a register of their members, but will my right hon. Friend assure the House that there will be no undue administrative burden on smaller trade unions as a result of the measures in his Bill?
Mr Lansley
I am confident that the burden on trade unions will be very modest. As far as the certification officer is concerned, we are talking about only three additional members of staff as a consequence of all this. In future, unions will provide a membership audit certificate to the certification officer alongside their annual financial return. Unions with more than 10,000 members—this helps to answer my hon. Friend’s point about the smallest trade unions—will be required to appoint an independent third party, an assurer, to provide the certificate, which will state whether the union’s systems for maintaining the register meet the statutory requirements. That independent assurance will be important to provide confidence in large and complex membership records.
It will be the responsibility of the certification officer to make inquiries and to appoint an inspector to investigate possible discrepancies, if there are circumstances suggesting that a union has not complied with those requirements. That will complement the existing responsibilities for investigating complaints made by individual members. We expect that in most cases the inspector will be a member of the certification officer's staff, but it could be an expert third party.
The Bill sets out how assurers and appointed inspectors will be bound by duties of confidentiality in their handling of member data. Of course, existing safeguards in data protection and human rights legislation will apply in this case as they do elsewhere. Should the certification officer find a union to be non-compliant with these duties, he will make a declaration to that effect specifying where the union has failed to comply and the reasons for the declaration. In addition, he will be able to make a civil enforcement order, requiring the union to take steps to remedy the issue. However, prior to making a formal declaration and order, the certification officer will give the union an opportunity to make representations.
This is not about making it harder for trade unions to operate. We are not requiring unions to collect more data or change the way in which they keep membership registers. Nor are we amending the requirements on industrial action ballots. The requirement to keep a list of member names and addresses is distinct from information that a union must supply to an employer when balloting for industrial action.
Mr Lansley
I really must complete the speech; I am sorry.
Case law is now clear that minor or technical errors in such information are insufficient for a court to grant an injunction against industrial action. Furthermore, a statutory protection means that unions are only required to supply information to the employer that is in their possession at the time.
We will, though, work with both unions and employers to develop comprehensive guidance about their rights and responsibilities as a result of the new regime. Furthermore, although larger unions will be required to appoint an assurer to provide the membership audit certificate, those either in their first year or with fewer than 10,000 members will be able to self-certify.
I have heard the claim that these measures represent an intrusion into trade unions’ right to autonomy. Rules of operation will vary from one union to another. We are not interfering with that. Unions will continue to choose how they define a member, and we are deliberately not prescribing the processes that a union should adopt in their compilation and maintenance of member data. All we are doing is asking unions to provide an annual assurance that they are doing everything that they can to ensure that they know who their members are and how to contact them. I think members would be concerned if their unions felt unable to comply with that.
These measures will provide an assurance that trade unions—increasingly large and diverse membership organisations—know who their members are and can effectively engage with them. These are reasonable requirements. The Bill does not go further and give trade union members the right to exercise a deliberate choice whether to participate in a trade union’s political fund or its subscription to party membership. I wrote to the Leader of the Opposition to offer him the opportunity provided by the Bill to undertake exactly the deliberate choice that he said members of trade unions should enjoy, but 10 weeks after sending him that letter, I have had no response.
The Bill, as I have shown, will do practical things to extend transparency and accountability in relation to third parties. Lobbyists, third parties and trade unions all play an important role in the political process, by helping to inform policy making and ensuring that views are heard by those who are in the Government, Parliament and beyond. That should continue, but we also want to prevent our political system from ending up as we see in other parts of the world, where unaccountable groups spend millions attempting to influence the political system. We want to be open, transparent and clear about who influences the political system, and I commend the Bill to the House.
Sammy Wilson
We have already discussed the importance of lobbying groups in providing the sort of information we require to do our job, but if we are to regulate them, they have to know what they are being regulated for. In closing, let me give a couple of examples.
I can think of many lobbying organisations that, because of the position I previously had in the Northern Ireland Assembly, had to see through many of the expenditure cuts that came as a result of decisions made here. They probably attached a lot of the blame for the consequences to me, and when it comes to the election, I am sure they will make that point. Does that sort of campaigning have to be declared as controlled expenditure, or is it simply what we would generally expect from organisations that have control over welfare changes, capital spending cuts and so forth?
Mr Lansley
Let me intervene to disappoint the hon. Gentleman a little by pointing out that the bit of text he referred to in the Bill relating to what is defined as being for electoral purposes is exactly the same text as currently applies under the Political Parties, Elections and Referendums Act 2000. That is what the current law provides, and it is simply being repeated in the context of this new Bill. The hon. Gentleman is thus attacking the Bill for doing something that already exists in law.
Sammy Wilson
It may well already be in law, but there are now additional penalties attached and additional requirements made on the organisations. For that reason, it does make the situation difficult for these groups.
Let me provide another example. One group that is not affected by the Bill but nevertheless contacted me is the Christian Institute in Northern Ireland, which has taken a very strong view on gay marriage. Over the last six months, it has lobbied heavily on the issue, which might well have influenced how people who support the Christian Institute will vote in future elections. Is that organisation, then, to be subject to all the scrutiny of its expenditure and so forth—not just for this election, but for future ones—and to all the uncertainty attached to that?
The Leader of House says that the provisions are already in place, but there are additional requirements for controlled expenditure to be declared and if it is not declared, it will count as an offence. If an offence has been committed, the organisations will of course find themselves either having to defend themselves in court or simply accept the allegations made against them. Again, that will have a chilling effect on their activities. If they have to defend themselves in court, it will lead to additional expenditure and it might also mean that the organisation will be tarnished. That is one reason why many of these third-party organisations are saying, “This is bad legislation; this is going to damage us; the legislation should be voted against.”
The Bill does not deal properly with the ordinary lobby organisations: it does not include all their lobbying activities. It does include the activities of third-party organisations. Members may or may not approve of those activities, but the fact is that such organisations can currently engage in them, but will be dissuaded from doing so in the future. For those reasons, we will vote against Second Reading.
Stephen Doughty
I entirely agree. That is exactly what happened, and, as I have said, it involved all parties. The campaigners from those other countries who did not benefit from the same open, democratic ways, and from the strengths of civil society, found it particularly striking. They shared with me their experiences of fighting for rights in places such as Zimbabwe. I am sorry to say this, but the Bill has a whiff of Zimbabwe about it. [Interruption.] It appears to be nothing more than a cynical and ill-thought-out attempt to clamp down on the challenge that is presented to all of us when we stand for Parliament.
Mr Lansley
Perhaps the hon. Gentleman will answer this question. In 2005, when he conducted his campaign with World Vision, electoral law required any expenditure for electoral purposes to be registered. Was any part of that expenditure registered for electoral purposes, or did he not seek to promote the electoral success of any party or candidate in his campaign, in which case all the expenditure would have remained outwith the regulatory structure?
Stephen Doughty
The real issue is that many charities will observe the lack of clarity in the Bill, and, unable to gain access to the legal advice and expertise that is needed to deal with it, will effectively be muzzled. That is what is really going on: a clampdown on charities and community organisations. At the same time, the Bill does not deal with the likes of Lynton Crosby—the rich and already powerful members of society.
As I have said, the main issue is that the Bill does nothing to clamp down on the activities of the big lobbying industry and make them more transparent. In fact, it excludes most of the lobbyists and most of the lobbying, which strikes me as completely pointless. We have all heard how the Bill will capture only 1% of the meetings organised with lobbyists. The idea that the only crucial lobbying that goes on is in meetings with Ministers and permanent secretaries is, frankly, ridiculous. Without wanting to be disrespectful, it is often the least experienced and most junior officials and advisers in Government who are the most susceptible to undue influence, whereas, in contrast, most of the Ministers—of all parties—and most of the permanent secretaries whom I have dealt with have taken a critical-thinking approach to the lobbying and approaches they receive, whether from Oxfam, the CBI or other interest groups.
We have heard that Spinwatch has called the Bill “a sham”, and that the Chartered Institute of Public Relations has said that it
“would not even come close to preventing the alleged breaches of parliamentary standards that have seen this legislation rushed through.”
The Bill does nothing to open up this part of the industry, which is the majority of it, or to make it more transparent. That makes it all the more sinister that the latter parts of the Bill could result in shutting down the type of influence and activity—the raising of voices on behalf of ordinary people and causes lacking in money, power and existing relationships—that is needed to balance out those big influences.
We have heard from many colleagues on both sides of the House of the many organisations and causes that are worried about this Bill. I know from personal experience how seriously charities and campaign coalitions take their existing obligations. I believe they already often err on the side of caution, rather than risk being seen to be operating in any way that could open them up to allegations of partisanship or undue influence. I am therefore very worried on a number of fronts about the ill-thought-out and unclear provisions in part 2.
First, staff costs and overheads could be included in what has to be declared, meaning that larger charities might have to pull back to avoid hitting the lower spending limits set out in the Bill. Secondly, I am deeply concerned about the possible impact on smaller charities, a number of whom have commented during the course of this debate about how they will not be able to cope, from a legal perspective, when they are less well resourced. I was lucky to have the support of an excellent and experienced legal department when such questions arose in Oxfam, making sure that we met our legal objectives. That is simply not available to many smaller charities and community organisations and that will result, essentially, in their muzzling.
The Deputy Leader of the House of Commons (Tom Brake)
We have had a lengthy and impassioned debate, and I am grateful to all Members for their contributions. I am afraid that in the nine or so minutes that are left I will not be able to address all the points that have been made.
First, let me remind Members of what this Bill is intended to achieve. It will push this Government’s culture of openness and transparency further by creating a statutory register of lobbyists, which the Government promised to do in the coalition programme. It will ensure that third parties that campaign at elections do so openly and within a fair regulatory framework. It will provide assurance that trade unions, as increasingly large and diverse membership organisations, know who their members are and can engage effectively with them. Those are all reasonable and valuable changes to our political system.
Let me now address some comments, concerns and myths. The Bill is not about closing down charities’ ability to influence policy, as many Members claimed. I want to put on record the following so that it is clear to Labour Members, because I think there is some confusion. At present, a charity can undertake non-party political activity where its trustees can show that it supports the charity’s purposes and will be an effective use of the charity’s resources. Charity law prohibits charities from engaging in party politics, from party political campaigning, from supporting political candidates, or from undertaking political activity unrelated to the charity’s purpose. Charities, and indeed all other organisations, currently need to register as third parties only if they are spending money on campaigning to procure or promote the electoral success of a party or candidates. That test will remain under the Bill.
As under the current provisions, charities can still give support to specific policies advocated by political parties if that would help to achieve their charitable purposes. Provided that charities continue to campaign as they currently do, maintaining their political neutrality and independence, expenditure incurred by them is unlikely to come within the definition of “controlled expenditure”. It does not now and it will not under our proposals. Of course, the Government have on a number of occasions expressed a willingness to work with charities to ensure that this is clear, and if more guidance is needed, we will certainly ensure that it is in place.
Before dealing with the myths, I want to touch on scientific theories. Today we have had a very significant scientific theory proven—that there are parallel universes. Labour Members are debating a Bill that will gag charities and destroy trade unions; we are building on the transparency already created by this Government in relation to Ministers reporting their meetings by establishing a register of consultant lobbyists, by reducing the risk of super-PACs, or political action committees, and by ensuring that trade unions have up-to-date membership lists.
I have never heard as many myths as enthusiastically mouthed and endorsed with so little evidence as I have by Labour Members today. The shadow Leader of the House spoke for 44 minutes during which she made no reference to her own party’s policy. We had high-octane rhetoric that was very low in calorific value. She talked about furious displacement activity—reference, presumably, to what happened in the 13 years of Labour Government, when there was furious displacement activity on lobbying but no lobbying legislation. This Government are now acting on that. I wonder whether the hon. Lady feels any embarrassment about her wildly inaccurate allegations about what the Bill will or will not do. I am not sure whether she is doing that because she has not actually read the Bill or because she has misunderstood it. I will give her a couple of examples.
There were a few interventions, one of which alleged that, under this Bill, Make Poverty History would not have happened. That is simply not true. As the hon. Member for Cardiff South and Penarth (Stephen Doughty) will know, in 2005 that campaign did not register as a third party campaign, because it conducted its campaigning in the appropriate way as a charity. That will continue under this Bill. Another intervention was on whether the Bill would impact on the Scottish referendum. The shadow Leader of the House indicated that she believes it would have had an impact on Make Poverty History and that it will have an impact on the Scottish referendum, but neither of those cases is relevant to the Bill.
Fiona O’Donnell
If the Deputy Leader of the House is right that there is nothing for charities to fear from the Bill, why are they and the Electoral Commission all so concerned? Is it simply a case of the same old Government excuse of bad communication?
Tom Brake
Clearly, the Electoral Commission has expressed concerns and when the Bill goes through its Committee stage, I am absolutely certain that further clarity will be provided and the commission will be in a better position to provide the guidance it is required to give in order to ensure that charities understand the basis on which we are proceeding.
Bob Stewart
As I understand it, on 18 July the Leader of the House gave a timetable for this Bill and there was no objection to it.
Simon Hughes (Bermondsey and Old Southwark) (LD)
Some of us are very pleased that the Government are introducing a Bill to deal with transparency of lobbying, which the previous Government never did. There has been an enormous amount of hype and overstatement, but perhaps some improvements could be and need to be made. May I have a clear undertaking that next week’s Committee stage will be open to amendments from across the House, including from relevant Select Committees with an interest in and knowledge of the subject?
Tom Brake
I thank my right hon. Friend for that intervention. Clearly, the Government have stated on a number of occasions that we are very keen to work with charities, non-governmental organisations and, indeed, Select Committees to ensure that their views are taken into account. That is very much our intention. We also want to ensure that the issue of parliamentarians and the role we play will be clarified very clearly in relation to this Bill.
Mr Allen
A series of scandals led the Prime Minister to say that lobbying would be the next big crisis for the British political system and to the inclusion in the coalition agreement of a provision to regulate lobbying. Would this Bill attack any of those cases? Is it in any way relevant to the public concern about lobbying?
Tom Brake
As the hon. Gentleman will know, the MPs’ code of conduct covers some of the misdemeanours to which he refers. What we are doing in relation to lobbying is specifically about third party lobbyists.
In conclusion, I reiterate that the Bill is about transparency, openness and fairness. I wanted to spend the limited time available allaying unfounded fears and addressing some of the myths that have been brandished across this Chamber in the past few hours. I wanted to be clear about what this Bill is intended to do and why the Government are doing it. It is not an attack on freedoms and democracy. The very opposite is true, and I commend the Bill to the House.
Question put, That the amendment be made.