Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill
(Limited Text - Ministerial Extracts only)
Read Full debate14:38 - The House divided: - Ayes: 311 / Noes: 258 - Question accordingly agreed to.
16:43 - The House divided: - Ayes: 310 / Noes: 278 - Question accordingly agreed to.
16:58 - The House divided: - Ayes: 0 / Noes: 0 - Question accordingly agreed to.
The Deputy Leader of the House of Commons (Tom Brake)
I ask colleagues to disagree with Lords amendment 1, and to support amendments (b) and (c) in lieu. I hope the House will also be persuaded to disagree with amendment (a), which was tabled by the Chair of the Political and Constitutional Reform Committee, the hon. Member for Nottingham North (Mr Allen). I wish to say at the outset that I cannot agree with his comments about the lack of consultation. If he looks at what has happened since this Bill got under way and, for example, at the ministerial quarterly reports, he will see the extent of consultation that has taken place on the Bill. The fact that many of today’s amendments have been the subject of consultation in this place and in the House of Lords, and have reflected to a great extent the concerns expressed by a range of organisations, underlines the fact that substantial consultation has taken place on this subject. Indeed, many of those changes are inspired by his Committee.
I must also say that repeatedly stating that charities will not be able to campaign on policy matters, as we have heard Opposition Members do, does not make it true.
Caroline Lucas (Brighton, Pavilion) (Green)
On the process by which we are having to deal with this Bill, does the right hon. Gentleman agree that Parliament is being made a laughing stock by the fact that we are trying to concertina such a complex issue into such a short time? Does that not undermine any credibility this Government had? They are supposed to be championing the big society, but they are trying to muzzle it, both in the Bill and in the process they are setting out here today.
Tom Brake
First, it is not unusual for things to proceed at this pace. I should also point out that what we are supposed to be focusing on in this debate is a limited number of amendments that have come from the Lords and some amendments in lieu that the Government are proposing—that is today’s subject. I do not want to make too long a speech, because I can see from the requests for interventions that a lot of hon. Members want to speak on this group.
Amendment 1 was moved on Report in the House of Lords by Lord Tyler and was agreed to by a majority of 18 votes. The amendment would extend the scope of the register to those who lobby special advisers, in addition to those who lobby Ministers and permanent secretaries. We debated this issue ourselves when discussing the amendments tabled in Committee by the Opposition, the Chair of the Political and Constitutional Reform Committee and other Members. During that debate, the Government made it clear that the register was designed to complement the existing government transparency regime and to address a specific problem.
It may help if I first remind the House of the context for the part 1 provisions—the unique open government context in which they have been developed. Transparency is at the heart of this Government’s agenda. We are opening up government and the public sector, and by doing so we are enhancing transparency, participation and accountability. [Interruption.] The noises from Opposition Members need to be quiescent for just a couple of seconds because I want to outline the things the Government have done since 2010 to open up transparency. We have published unprecedented amounts of information about decision makers and decision making. Since 2010, we have proactively and regularly published the following details: Ministers’ private interests; Ministers and permanent secretaries’ meetings with external organisations or individuals; Ministers and special advisers’ meetings with media proprietors, editors, and senior executives; all gifts of hospitality received by Ministers, permanent secretaries and special advisers; ministerial overseas travel; all official and charity receptions held at No. 10; and those who have received hospitality at Chequers and Chevening.
Paul Flynn (Newport West) (Lab)
Will the Minister explain when the Government will release the vital information on exchanges between President Bush and the then Prime Minister of this country as it is delaying the Chilcot inquiry and has delayed it for the past three years?
Tom Brake
The hon. Gentleman must be familiar with the Chilcot inquiry website, so he can access that. I am sure that Mr Speaker will not allow me to take this debate on to the subject of Chilcot when it is very much a focused debate on the amendments under consideration.
The list I have just read out is impressive in terms of opening up transparency. In addition, we have published the names, job titles and pay bands of all civil servants earning more than £80,000, and the job titles and pay bands of all other roles. Such initiatives are shining the light of transparency on to the actions of decision makers and are empowering citizens to hold politicians and public bodies to account. Despite being recognised leaders in open government, we are not complacent. We heard from colleagues in both Houses that there is more we can do to extend further transparency in Government and the public sector. We listened carefully to those concerns and, in response to my colleague, Lord Wallace of Tankerness, we made a commitment to improving the accessibility of Government transparency information. Specifically, the Government committed to ensuring better co-ordination of the publication of datasets so that all returns within a quarter can be found on one page.
We will improve the access to and the presentation of that data, including by improving the consistency of presentation and titling. We will also seek to ensure greater consistency in the content of departmental reporting and to include the subject of meetings. Finally we will ensure that the Government.UK transparency pages contain a link to the statutory register of lobbyists so that the data can be easily cross-referenced.
Andrew Gwynne
Surely the Minister recognises that the first port of call for many lobbyists is not the Minister or the permanent secretary but the political adviser in that Department or other civil servants. Is that not the gaping hole in this lobbying Bill? It does nothing to tackle the real lobbying that is taking place.
Tom Brake
The Government are focusing on Ministers and permanent secretaries because of their key decision-making roles. Ultimately, they make the decisions in Government. We will of course come to the issue of special advisers.
The measures will further improve the transparency of decision makers. It is equally important that the actions of those who seek to influence decision makers are also transparent. We have been clear that lobbying plays a vital role in policy making, ensuring that Ministers hear a full range of views from those who will be affected by Government decisions, particularly in the more participative and open policy-making environment that we are promoting. It is crucial that the fluency of this dialogue is protected.
Barbara Keeley
Did the Minister not hear the point I made to my hon. Friend the Member for Nottingham North (Mr Allen) about recent reports based on freedom of information requests of senior civil servants in the Department of Energy and Climate Change meeting lobbyists from the shale gas industry to give them lines to take? I am talking about hospitality, meetings and e-mails. That is not balanced; that is not hearing both sides of the argument. If that is the relationship between DECC civil servants and the shale gas companies, does the Minister not understand that there is no balance in that whatever?
Tom Brake
I am afraid that I am not aware of the details to which the hon. Lady has referred. Again, I restate the fact that this is about ensuring there is transparency around the people who make the decisions in Government, and that is perfectly appropriate.
By publishing details of Ministers’ and permanent secretaries’ meetings with external organisations and individuals, we have enhanced the transparency of that dialogue, without diminishing its vibrancy. There is one element of the dialogue, however, that remains potentially hidden and that is when organisations or individuals make communications to Ministers and permanent secretaries via consultant lobbyists. That is because it is not always clear which third-party interests are being represented by such lobbyists. The provisions for a statutory register of consultant lobbyists provided for by part 1 of the Bill address that specific problem. They will identify the interests represented by consultant lobbyists by requiring them to disclose details of their clients on a publicly available register.
There has been some criticism of the Government’s proposals for a register, but there has been no consensus on what should replace it. I recognise that some in this place have suggested that the scope of the register should be broader to capture all those who communicate with Government and require them to disclose extensive information regarding their activities and finances. There has, however, been no clear articulation of the problem that such proposals would address.
Sheila Gilmore (Edinburgh East) (Lab)
Having chided Opposition Members for complaining about the lack of time, saying that they should concentrate on the actual amendment, perhaps the Minister himself could come to the amendment rather than reprising his Second Reading speech.
Tom Brake
I am happy to confirm to the hon. Lady that that is precisely what I am doing. The failure to make the case for a higher-regulatory model has meant that neither House felt it appropriate to extend the scope of the Government’s provisions. That is not to say, however, that each place has not made very real contributions to ensuring that we deliver robust and effective provisions for a statutory register of lobbyists. Following the recommendations of the Political and Constitutional Reform Committee and the Standards and Privileges Committee, the provisions were amended to ensure absolute clarity regarding the register’s application to parliamentarians. We also amended the Bill to ensure that the register does not impose disproportionate burdens on the smallest businesses. Further amendments were made in the House of Lords and many of those reflected discussion and debate within this Chamber.
Lord Tyler’s, amendment, which was agreed to by just 18 votes, would extend the scope of the register to those who lobby special advisers. I understand why he was seeking to make that change. However, it is the coalition Government’s view that it would dissociate the register from the clearly articulated problem that it is designed to address. The amendment tabled by the Chair of the Political and Constitutional Reform Committee would further detach the register from its objective, by extending the scope of the register to those who lobby senior civil servants.
The register is designed to complement the system by which Ministers and permanent secretaries publish their meetings and to address a specific and discrete problem within that context. Our view is that to extend the scope of the register to other public officials would provide no appreciable benefits because they are not required to publish their diaries.
Yes, we accept that lobbyists make communications to Government other than directly to Ministers and permanent secretaries, but ultimately it is Ministers and permanent secretaries who are responsible for the decisions taken within their Departments. Lord Tyler suggests that the register should apply to those who lobby special advisers. Special advisers may provide advice, but they are not decision makers. It is Ministers, not special advisers, who are ultimately responsible for the actions of their Departments; and it is therefore only right that Ministers, not special advisers, are the main focus of the meeting reporting system and the register.
Luciana Berger
The Minister will know as he has been in this place a while—I am a relatively new MP; I have been here only since May 2010—that when we see a Minister, as we often do in Portcullis House or around this building, they often have, on their right arm, a special adviser. That special adviser is with them morning, noon and night, and also has meetings in the evenings and at weekends. The idea that we can dissociate that special adviser from the Minister is frankly ridiculous. I cannot understand the Minister’s rationale.
Tom Brake
I can reassure the hon. Lady that I have not finished my comments in relation to special advisers. There is an amendment in lieu to which I am about to refer. Ultimately, whether or not there are contacts with the special adviser, it is not the special adviser who signs off the decision; it is the Minister.
Dr Sarah Wollaston (Totnes) (Con)
The description I would use is glued at the hip. Coming to this place as an outsider, my observation is that special advisers are absolutely key to decision making. If our aim is genuinely to improve transparency, we will miss an important opportunity if we do not include special advisers.
Tom Brake
I can reassure my hon. Friend that I have not finished commenting on special advisers, so perhaps I should pursue that. There might be further interventions, but let us wait and see.
Special advisers are defined by the Constitutional Reform and Governance Act 2010, which includes the requirement that they are a person
“appointed to assist a Minister of the Crown after being selected for the appointment by that Minister personally”.
The Act also provides for a statutory code for special advisers that makes it clear that they may not authorise the expenditure of public funds, exercise any power in relation to the management of any part of the civil service of the state or otherwise exercise any statutory or prerogative power.
As the code makes clear, the employment of special advisers adds a political dimension to the advice and assistance available to Ministers. They are an additional resource for the Minister, providing assistance from a standpoint that is more politically committed and politically aware than would be available from the permanent civil service. I must restate this: unlike a Minister or permanent secretary, a special adviser is not a decision maker, even if, as my hon. Friend the Member for Totnes (Dr Wollaston) says, they are attached to the Minister’s hip. We are aware, however, that there are those in this House who agree—[Interruption.] Members need to listen.
We are aware that some Members agree with the conclusion of the House of Lords that communications with special advisers should be captured. Indeed, many Liberal Democrat peers and Members of Parliament agree that they should be captured, but no amendments were tabled to extend the scope of the register in such a way when the issue was discussed in this House. In the House of Lords, Lord Tyler’s amendment was agreed to, but by a small majority.
Lisa Nandy (Wigan) (Lab)
Can the Deputy Leader of the House confirm that Lynton Crosby would be covered both by the code of conduct and the amendment that the Government have tabled today?
Mr Redwood
Will the Deputy Leader of the House explain the position of a senior official who happens to chair a committee or run a quango that has decision-making powers?
Tom Brake
My right hon. Friend will be aware that the third-party register of lobbyists focuses specifically on Ministers or permanent secretaries. That is what is before us today.
We are not persuaded that the calls to capture communications with special advisers are sufficiently strong to justify amending the Bill in the manner that Lord Tyler proposes. We are, however, aware that the discussion about including such communications within the scope of the register is likely to continue. We therefore propose as a contingency an amendment in lieu that would introduce a power for the Minister to amend the definition of consultant lobbying provided for by clause 2 so that it could subsequently, if necessary, include communications with special advisers. Such a power would enable Ministers to extend the scope as suggested if and when they were persuaded of the case for doing so without the need for primary legislation. It should therefore assuage the concerns of those who have asked that we do not eliminate the possibility of expansion of the scope if it is justified in future.
Fiona O'Donnell (East Lothian) (Lab)
Will the Deputy Leader of the House tell us how many groups or organisations have met the permanent secretary at his Department in relation to this Bill, so that we get a flavour of how an effective a route that is?
Tom Brake
I am afraid that I cannot give the hon. Lady an answer to that question immediately. However, if she wants, she can do what a number of newspapers have done when they have produced so-called scoops. They have gone through the quarterly ministerial reports, looked at the meetings registered and added up the number of meetings with the permanent secretary. That information is there if she wants to pursue the question.
Mark Durkan
On the question of the definition of “special adviser”, will the definition the Deputy Leader of the House has cited include the new class of policy advisers who, we are told, will be “specialist” rather than “special” advisers and will be appointed by Ministers to move policy along in significant areas?
Sammy Wilson (East Antrim) (DUP)
The argument so far has concentrated on any lobbying of the final decision maker, but does the Deputy Leader of the House not agree that the process of eventually making the decision is equally important? That starts with senior civil servants and goes through special advisers, and is as important as any lobbying of the final decision maker.
Tom Brake
I think the hon. Gentleman is asking me to require the Government to publish all the internal workings of government, but that is not done by any Government. My view is that the Government’s proposed amendments in lieu will be a pragmatic response to the Lords’ concerns.
Let me turn to the amendment tabled by the Chair of the Political and Constitutional Reform Committee. I should remind the House that we have discussed the matter and that no relevant amendments were moved. Similar amendments were moved in the House of Lords, and the extension of the register to public officials such as civil servants was rejected by a substantial majority of 51. As I have outlined, the register is intended to complement the existing Government transparency regime. Both systems are intended to enhance the transparency of key decision makers—Ministers and permanent secretaries—and those who communicate with them.
Mark Durkan
It is somewhat unfair of the Minister to rely on the fact that no amendments to expand the scope of the register to include special advisers were moved in this House. Many amendments were tabled that would have extended the scope to include special advisers and senior civil servants, and it was only the exigencies of time that meant that Members did not move them, as they would have lost time for debate by calling a Division.
Tom Brake
Had we had the opportunity to discuss amendments on civil servants, for instance, we could have considered the impact, the scale—that is, how many thousands of civil servants it would have included—and the potential costs associated with such an extension. In some ways, I would have welcomed that.
As we have previously outlined, there is little value in extending the scope of the register to those who are not required to publish their meeting details. We are not persuaded that the introduction of meeting reporting obligations for senior civil servants is appropriate. Such a system would result in an unnecessary, disproportionate and unhelpful administrative burden and the cost to the public purse could not be justified in the light of the limited transparency benefits that would be achieved.
Angela Smith (Penistone and Stocksbridge) (Lab)
Given that amendments (b) and (c) were made available only at 11 o'clock this morning, it would be really helpful if the House could understand the differences between the proposals of the amendments in lieu and those in Lords amendment 1. The House deserves a clear explanation.
Tom Brake
I thank the hon. Lady for that intervention. The clear explanation is that our amendments in lieu provide an opportunity for such a change at a point in the future, if the debate leads to a consensus on proceeding with the reporting of special advisers’ meetings. That is what we are facilitating. Who knows? A future Labour Government might well have to make that decision, and it would be interesting to know whether they would want to take it.
There are about 5,000 senior civil servants in the UK. Is there really public interest in seeing the details of all their meetings with external organisations? [Interruption.] Surely the huge costs that that would involve are hardly justified. I heard a number of Members saying “Yes” from a sedentary position, but I wonder if any of them have costed the possible impact and the effect that such a change would have on the activities of those 5,000 senior civil servants. I am waiting—
Stephen Doughty
No, it will not be. The Deputy Leader of the House spoke earlier about the decision being made “if and when” Ministers were persuaded. What criteria would he use to decide “if and when” he was persuaded?
Tom Brake
We would need consensus within the coalition Government that we wanted to proceed in such a way. As I stated, a number of Liberal Democrat Members of Parliament and peers would like to see us proceed in such a way, but we are not in a position to do that and that is why, if the position changes, we are facilitating either this Government or a future Government in taking such a decision without primary legislation. I am disappointed that the hon. Gentleman did not use his intervention to outline the cost of extending the provision to 5,000 civil servants, which now seems to be the official policy position of the Opposition.
Mr Allen
May I again commiserate with the right hon. Gentleman, a sensible and capable Front Bencher, on being lumbered with the Bill? I am sincerely sorry that he has been landed with this—I hope that it does not influence his long-term career prospects.
Making legislation on the hoof may allow us to repent at leisure. I would like the House to understand what was added to the amendment paper last night, because I do not understand it as much as I would like. Is the crux of amendment (b) on special advisers the word “may”—regulations may be made some time in future—which does not need to be included in the Bill, as the Government can introduce new legislation to do that, or is it a commitment that, with some certainty, that provision will be introduced in the near future? If it is the former, many of us would find it difficult to support. If it is the latter, some of us would be sympathetic towards what the Deputy Leader of the House is saying.
Tom Brake
I thank the hon. Gentleman for his intervention. I am not sure that I can add much to what I said earlier, other than that this is about providing an order-making power to a Minister to enable the inclusion of special advisers in the terms of the third-party register at some point in the future, which could be the day after Royal Assent, if that was desired. We should streamline public services, not impose additional burdens on them.
Mr Speaker
I thank the hon. Gentleman for his point, but my initial suspicion was nevertheless valid. It was a point of great interest and it is on the record, but it was not a point of order. Never mind—he has made it.
Tom Brake
I need to make some progress, as we do not have much time for the debate.
We should streamline public services, not impose additional burdens on them. We should provide the public with relevant and useful information, not overwhelm them with huge volumes of unhelpful and extraneous data. The House accepted these arguments in our debates on part 1, and did not seek to extend the scope of the measure in the manner proposed by hon. Members. We should respond to the Lords amendments constructively by proposing an amendment in lieu in respect of the proposed extension to capture special advisers, but we should not seek further to extend the scope in a manner that the Lords have specifically rejected.
Briefly, Lords amendments 2 and 3 deal with recipients of communications. They are minor amendments and improve drafting to clarify and provide greater consistency in the terminology used in relation both to the recipients of the lobbying communications and to the communications themselves. Lords amendment 4 is a minor amendment that clarifies the fact that the term, “Minister of the Crown” does not, in the context of the Bill, capture the two bodies of persons, the Defence Council and the Board of Trade. As clause 2 makes clear, the communications that the register is intended to capture are those that are
“made personally to a Minister of the Crown or permanent secretary”.
The definition in the Ministers of the Crown Act 1975 includes the Defence Council and the Board of Trade. Both those entities, however, are bodies of persons with which it is not possible to make personal communications. As such, the Lords amendments remove those bodies from the definition, and in doing so provide further clarity regarding the communications that fall within the scope of consultant lobbying.
Lords amendments 5, 6 and 7 deal with the code of conduct. In Committee in both Houses, the Opposition tabled amendments that required lobbyists to sign up to a statutory code of conduct and face sanctions for any breaches. As we exposed during the debates in both Houses, the Opposition’s amendments were based on a miscomprehension of the role of codes, both statutory and voluntary, in the regulation of lobbying. While the Opposition suggested that such codes are in existence and operate successfully in other jurisdictions, we have not been able to identify any international precedent for the type of code that has been proposed. Furthermore, the Opposition could propose just one provision for inclusion in that code: a prohibition on inappropriate financial relationships between lobbyists and parliamentarians, which is unnecessary, given the fact that there are parliamentary codes, as well as laws, on bribery and corruption. Once the shortcomings of the Opposition’s amendments were demonstrated, both Houses were able confidently to reject them.
My Lords—not my Lords—the objective of the part 1 provisions is to enhance transparency.
Tom Brake
Thank you, Mr Speaker. I do not anticipate a sudden transformation of the House into the other place.
The objective of the part 1 provisions is to enhance transparency and scrutiny. We are not seeking to regulate behaviour. During the debates, however, the Government heard calls from both Houses on the importance of ensuring that the statutory register complemented the existing self-regulatory regime. That reiterated the message of inquiries by the Political and Constitutional Reform Committee. The self-regulatory regime is the mechanism by which the industry promotes the ethical behaviour that is essential to the integrity and reputation of the lobbying industry. We are grateful to Members in both Houses for their thoughtful suggestions as to how we can best ensure that the register complements the regime and, after careful consideration and discussion with the industry and transparency groups, we have concluded that the most effective option is to provide for a statutory link between the statutory register and the industry-hosted voluntary codes of conduct.
Lisa Nandy
My hon. Friend, who has long been a champion of that sector, is absolutely correct. She shares my bewilderment at the Government’s target in the Bill.
As Lord Tyler made clear when the Bill was considered in another place,
“two of the big lobbying scandals in this Parliament… would probably never have got to this stage had encounters between close ministerial advisers and outside groups been a matter of public record.”—[Official Report, House of Lords, 13 January 2014; Vol. 751, c. 29.]
There are 98 special advisers across Whitehall but, as we have learnt through the dialogue with the Deputy Leader of the House today, there are many others who are considered to be advisers and are, like special advisers, the first, if not the only, port of call for lobbyists. As was said earlier, the process of arriving at decision making matters as much as the decision itself.
Tom Brake
The hon. Lady is obviously a strong advocate of transparency. One of the things that the Government have asked the Opposition to do, in the interests of transparency, is make available information on meetings that shadow Ministers have. Is that something they will do?
Lisa Nandy
I am grateful to the right hon. Gentleman for that question, because it gives me an opportunity to say that, unlike the Liberal Democrats and the Conservatives when they were in opposition, we publish details of meetings on a regular basis. In fact, we are the most transparent Opposition ever. I find it absolutely astonishing that, three and a half years after the Prime Minister, then Leader of the Opposition, made a commitment to shine a spotlight on the shadowy world of lobbying, the Government have climbed down on all the measures that we have been urging them to accept and the only thing that they can do is challenge us on our shadow ministerial diaries. The Deputy Leader of the House’s own argument was that the Government are responsible for making decisions. My point to him is that the Government are responsible for making decisions, and for the process by which they are made. We would like the measures that we have proposed to be put into the Bill. We can still see no good reason why the Government are resisting those calls.
The issue of special advisers is so important to the House because of the decision that we are being asked to make in less than an hour. I would like to ask the Deputy Leader of the House a series of questions that I have come up with in the last two hours, since the Government decided to table their somewhat bizarre and obscure amendments. First—I echo my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith)—what is the difference between what they have tabled and the amendment proposed in the other place? The answer to my hon. Friend appeared to be that the Government are simply kicking it into the long grass. Will the Deputy Leader of the House confirm that that is the case? Is this a guarantee that it will happen? The Government amendment states that the Government “may amend regulations”. Why use “may”?
The Deputy Leader of the House said that there was a need to reach consensus. I can tell him, because, unlike the Government, I have been listening to the clamour outside this place, that there is consensus. In fact, the only people who do not appear to have reached consensus on the issue are sitting on the Government Front Bench. If he looks behind him, I think he will find that many Government Members are as concerned as we are. Are Ministers planning to introduce the proposed measure in regulation? Do they have a time frame for doing so? Why is it not being introduced now? What are the Government worried about? We urgently need to clear up the lack of understanding about the definition of special adviser.
The Government’s amendments refer to the definition in the Constitutional Reform and Governance Act 2010. I asked the Deputy Leader of the House whether Lynton Crosby would be covered by that. Would it cover Adam Smith, Adam Werritty or any other Government adviser who has been involved in the plethora of scandals in recent years? [Interruption.] The Leader of the House is shaking his head and muttering under his breath. I can tell him that this matters not only to Members of the House, but to people outside this place. He will know that because he will have received hundreds of e-mails about the Bill from constituents, as we all have.
My reading of the amendment is that Lynton Crosby would not be covered, because he does not adhere to the special advisers code of conduct. If that is correct, it is a disgrace. The Deputy Leader of the House, in answer to an earlier question, did not seem at all clear about who was covered by his own amendment. I am not surprised, because it was made available to us only at 11 o’clock this morning, and he expects us to vote on it shortly.
The Chair of the Political and Constitutional Reform Committee asked about senior civil servants. If Ministers are conceding—I am still not sure if they are—that the requirements in the clause can be extended to special advisers, they can also be extended to senior civil servants. It is fairly obvious that permanent secretaries are rarely lobbied, whereas senior civil servants and special advisers are. Ministers do not have to believe me; they can listen to the deputy chair of the Association of Professional Political Consultants, Iain Anderson, who said:
“The vast majority of lobbying is not about meeting Ministers or permanent secretaries”.
The TUC, Spinwatch and other lobbyist groups have made the same point. The truth is that there is no reason at all not to support the sensible amendment tabled by the Chair of the Select Committee.
The Prime Minister used to be fond of quoting US Supreme Court Justice Louis Brandeis, who said that sunlight is the best disinfectant. Perhaps he ought to reflect on something else Mr Justice Brandeis said:
“People who feel uncomfortable under the bright light of scrutiny and criticism often have something to hide.”
Are the Government afraid of challenge? Let us consider the evidence: the right to challenge cut back through legal aid restrictions, employment tribunal fees and restrictions on migrant appeal rights; an Education Secretary who is fighting the Information Commissioner tooth and nail to block information from the public domain; and a scandal involving the use of private e-mail accounts at the heart of the Department for Education. Only this week Downing street refused to reveal how many guests were hosted at Chequers. The Prime Minister released a partial list that excluded special advisers, officials and, it seems, Conservative party donors. Without the amendment tabled by the Chair of the Select Committee and the important change on special advisers made in the other place, the Bill will do absolutely nothing to increase the transparency of lobbying.
During the 47 minutes of the Deputy Leader of the House’s speech, the only reason that I could understand for why he objects to that sensible measure is his claim that it would impose additional costs and bureaucracy. I simply do not understand how the Government have the nerve to talk about costs and bureaucracy when they are placing unnecessarily restrictive, expensive and onerous burdens on charities, grass-roots campaigners and trade unions, who are the lifeblood of democratic debate in this country.
Tom Brake
I have received clarification on that point. The new type of adviser to which the hon. Gentleman is referring exists only as a recommendation in a report on civil service reform. Such advisers do not currently exist, so it is impossible definitively to confirm or deny whether they would be covered by the proposals. If the new advisers are employed on the same basis as special advisers and are therefore covered by the Constitutional Reform and Governance Act 2010, they would be covered. If they are not employed on that basis, but are employed as civil servants, they would not be covered.
Mark Durkan
In what I have read, Government officials have said that the new advisers will not be special advisers—they might be specialist advisers, but they will not be special advisers. They will advise on policy. We are told by the Ministers who back the idea that it is about trying to break the logjam in Government and move policy along decisively. They will therefore have a key role in moving public policy along. It is Ministers, not Opposition Members, who are planning to have this new breed of advisers—this addition to the ecosystem of government and the networks of advice—so if the Government have not worked out what class of beast they will be, they cannot condemn the rest of us for asking and wondering. As legislators, we are meant to think forward to things that are planned and that are likely to happen.
The Chair of the Political and Constitutional Reform Committee has said that the reason he will not press amendment (a) to a Division is purely to afford the House time to discuss the issues in part 2 of the Bill that need to be discussed. However, I want to stress the merits of amendment (a). I hope that in future Ministers will not abuse the fact that a proposal is not being pressed to a Division out of courtesy to the Chamber because it has other serious concerns to discuss to make out that Members do not care about the issues or that the issues are not serious, as they have done today. These issues are serious. In my view, the Government have deliberately used the audacity of their proposals in part 2 as a human shield to cover the paucity and weakness of their proposals in part 1, which will apply only to those who present themselves in the Yellow Pages under the heading “Consultant Lobbyists”. People can engage in the business of professional lobbying on any other paid basis, whether it is in-house or for any of the big accountancy or legal firms, which provide all sorts of services.
The Leader of the House of Commons (Mr Andrew Lansley)
I beg to move, That this House agrees with Lords amendment 16.
Madam Deputy Speaker (Dawn Primarolo)
With this it will be convenient to take the following:
Lords amendments 17 and 104 to 107.
Lords amendment 108, and Government motion to disagree.
Lords amendment 19.
Lords amendment 20, and amendment (a) thereto.
Lords amendments 21 to 25.
Lords amendment 26, and Government motion to disagree.
Lords amendment 27, and Government motion to disagree.
Lords amendments 28 to 54.
Lords amendment 55, and amendment (a) thereto.
Lords amendments 56 to 58.
Lords amendment 59, and amendment (a) thereto.
Lords amendments 60 to 74, 109 to 116 and 18.
Lords amendment 75, and amendment (a) thereto.
Lords amendments 76 to 98.
Lords amendment 99, and amendment (a) thereto.
Lords amendment 100.
Mr Lansley
Lords amendments 26, 27 and 108, with which the Government disagree, relate to constituency limits and staff costs. I ask the House not to support amendments tabled by hon. Members to Lords amendments 20, 55, 59, 75 and 99.
After the Bill was last seen by the House, during consideration in the House of Lords, the Government undertook a further six-week consultation with interested parties—on part 2 of the Bill—that built upon the Government’s already considerable engagement with many campaigning groups. During the consultation, which took place between Second Reading and the Committee stage of part 2 of the Bill in the Lords, the Government held detailed, important and exhaustive—and sometimes exhausting—talks with some 50 organisations. Those discussions informed the Government amendments, with which the Lords agreed. As the House will have discerned from my opening remarks, many amendments—100 in total, encompassing 20 substantive issues—to part 2 have returned from their lordships, and we propose to accept all but three of them. The amendments, agreed in consequence of our discussions in the Lords, represent a considerable body of work undertaken in that House, and we are grateful to their lordships for that work.
The changes are designed to address the practical concerns raised by third parties, while preserving the important principles of transparency that underpin part 2. The amendments reduce the burden on smaller third parties who campaign at elections, ease the transition to the new regime and clarify the regulatory rules. That last point is important, because it became clear during the consultation that concerns often stemmed from a lack of awareness of the existing rules in the Political Parties, Elections and Referendums Act 2000.
As the House will recall, the PPERA established a framework for the regulation of non-party campaigning at elections, and many of the representations derived from an objection not to the Bill, but to how the PPERA rules, in the view of those making the representations, would have worked. This debate has enabled us to introduce amendments that meet many of the concerns raised, to clarify how charities and campaigners can legitimately campaign on policies and issues without falling subject to the election law regulatory regime and, where they may fall to be regulated, to reduce the burdens of compliance and ensure that small-scale campaigns are exempt from that regime.
The House will recall that before the Bill was sent to the Lords, we made significant changes to it here. In particular, we returned to the definition of “controlled expenditure” in the PPERA—in other words, expenditure
“reasonably regarded as intended to…promote or procure the electoral success”
of a party or candidate—but narrowed it slightly so as not to include the additional limb about enhancing the standing of parties or candidates. We had, therefore, already made some clarifications to the Bill before we sent it to their lordships.
Of those changes, the National Council for Voluntary Organisations, one of the largest and most prominent umbrella bodies representing charities and the voluntary sector, said:
“The government’s commitment to abandon the change to the test of what constitutes non-party campaigning is a significant step in the right direction.”
Pete Wishart
The Leader of the House knows, because we have told him often enough, that on these issues we actively encourage the participation of the third sector in Scotland. In the light of that, why have the Scottish Government not received one reply from this Government regarding the Bill, particularly concerning its effect on our referendum and on Scottish charities?
Mr Lansley
The Bill, of course, will have no effect on the referendum in September. I do not recall receiving a letter from Ministers in the Scottish Government, although I do recall receiving letters from the First Minister of Wales, which I replied to. If Ministers have received any such letters, I shall gladly take advice on what the reply has been.
Mr Redwood
Will my right hon. Friend confirm that charities have never been able to use tax-privileged money to campaign for parties and individuals in elections, which is what he wishes to continue to be the case?
Mr Lansley
That is absolutely right. I am sure my right hon. Friend will recall—it has been interesting to have these conversations—that if charities comply with the guidance, called CC9, issued by the Charity Commission, we can be pretty confident, except in very limited circumstances, that they will not fall to be regulated under election law. It could happen if, for example, a charity pursued its purpose in a run-up to an election, received various pledges from various candidates or parties in relation to its objectives and then chose to issue details to the public. That could be held to be seeking to influence electoral outcomes. Frankly, however, our discussions have increasingly demonstrated a mature approach on the part of the charities, many of which have recognised that the Bill was not really about exempting charities and that only in very limited circumstances would charities fall to be regulated. Many charities completely understood and agreed that it was right for those who wished to influence election outcomes to do so openly and transparently. That is what the Bill is all about.
Andrew George
The Leader of the House implies that, in accepting all but three of the amendments to part 2, the Government are being generous, yet many of the amendments are, of course, Government amendments. Does the right hon. Gentleman not think that, as well as the charitable sector demonstrating its maturity, the Government might have learned some lessons from this particular process? What are those lessons, and does he not accept that he could have done things better?
Mr Lansley
I am sorry, but I think that, in this respect, my hon. Friend has not understood how these issues have often worked. I shall not go through all the amendments in detail, but many of those that he says are coming back to us as Government amendments were tabled as Government amendments on Report in recognition of the character of the preceding debate and consultation in Committee. Members of the House of Lords often raised issues in Committee. My noble Friends Lord Wallace of Tankerness, Lord Wallace of Saltaire and Lord Gardiner did magnificent work in determining where it was appropriate for the Government to make amendments in recognition of the concerns expressed. [Interruption.] I do not think that Opposition Members should sneer at the idea of the Government tabling amendments in the other place in order to bring them back here to meet the concerns, which is nothing other than a proper process of scrutiny.
There are a lot of amendments in the group, so let me set out the Government view of the main ones, starting with those with which we disagree. It is important for Members to understand where the burden of the debate lies.
Lords amendment 108 seeks to exclude staff costs associated with any member of staff of a third party from the calculation of controlled expenditure for transport, press conferences, organised media events, public rallies and public events. When Parliament passed the Political Parties, Elections and Referendums Act 2000, it believed that the inclusion of staff costs was an important element of ensuring a transparent regulatory regime. As Labour Members will recall from their time in government, that Act included staff costs in the calculation of controlled expenditure for non-party campaigners. The decision was taken on the basis that where a third party undertakes other activities besides political campaigning and enters into political campaigning, its spending for those purposes should be fully transparent.
Charlie Elphicke (Dover) (Con)
My understanding is that our election agents would count as part of our costs when we stand for election, as would hiring a phone bank, so why should there not be full transparency in connection with the staffing costs in this case?
Mr Lansley
There is a distinction between the handling of staff costs for political parties and their handling for non-party campaigning. That was the point I was making: in so far as political parties have permanent staffing costs, they are not necessarily included, but it was determined in the 2000 Act that we should aim to identify the additional costs. [Interruption.] They are included in individual constituency calculations, but not in the total spending limits for political parties, as applied under PPERA on a national basis. Otherwise, if a political party had more staff, it would automatically have less money available to spend at the time of the election. It is essentially about parity of arms. Where third parties are concerned, except in relation to the election period, almost by definition they do not have permanent expenditure on party political campaigning, so what they spend at election time needs to be calculated.
Mr Lansley
I will give way, but I must make some progress; otherwise the Opposition Front-Bench team will start chuntering again, complaining that I have taken up all the time.
Mr Allen
I shall avoid drawing the parallel that the hon. Member for Dover (Charlie Elphicke) drew between political parties on the one hand and charities and voluntary organisations on the other, which rather gave the game away. Let me refer more helpfully to the fact that my Select Committee supports the view that staffing costs should be included. However, we also support the second Chamber in its view that, for practical reasons, that should not apply this time round. The Electoral Commission and their lordships argued on practical grounds that because of the extra bureaucracy and the shortness of time, staffing costs should be exempt on this occasion, whereas they should normally be included.
Mr Lansley
I am grateful to the hon. Gentleman for clarifying that point at this stage. He was a member of the Government who included staff costs for non-party campaigning in the 2000 Act, and I think it would have been consistent for him to have stayed with that position.
On the concerns of third parties about the difficulties associated with calculating staff time, that is an existing element of the regulatory regime. Its operation in the last two general elections, alongside Electoral Commission guidance, shows that such costs can be accounted for without it being overly burdensome. In its current guidance, the Electoral Commission takes a proportionate approach to the calculation of controlled expenditure, including staff costs, by stating that third parties should make an honest assessment of the costs, which need to be reported.
It should also be noted—Lords amendment 19 is relevant—that with the proposed increases in the registration threshold, smaller organisations, whether they be charities or other campaigning organisations, will not be subject to any regulation. The need to calculate staff costs will not apply in that case, and it is the same for any larger organisation that spends only relatively small sums. Volunteer costs will, of course, continue to be excluded from the calculation of controlled expenditure.
As such, the Government believe that the inclusion of staff costs is an important element of the regime. We have none the less agreed to a review of the operation of the Bill during the 2015 general election. The inclusion of staffing costs will be an aspect of that review. Lords amendment 108 would, however, create a significant gap in the operation of an effective regulatory regime at the next general election, so I ask the House to reject it.
The next Lords amendments with which the Government disagree are Lords amendments 26 and 27—adding up to the total of three. These amendments provide that only limited activities should be considered as part of controlled expenditure for constituency limit purposes. The amendments would require that only the costs of election materials—whether they are addressed to households or otherwise distributed—and unsolicited telephone calls to households should count towards those constituency limits. They therefore fail to take into account the principle that lay behind the introduction of constituency limits, namely the principle of transparency. It is essential for members of the public to know when third parties are campaigning in the constituencies in which they live, and to know how much money they are spending in doing so if it rises above any significant level.
As Members know very well, campaigning does not revolve around leafleting and cold calls. There are events such as press conferences and rallies; there is transport to bus supporters to an area, and there are the payments made to campaigners. All those are significant aspects of campaigning, and excluding the costs of such activities would undermine the effectiveness of the constituency limits. The constituency limits applying to third parties were introduced to prevent candidates and political parties—they are, of course, the main actors in any election, and rightly so—from being outspent and overwhelmed by the activities of third parties, so that parties do not put their own candidates forward in an election. The Bill does not prevent third parties from campaigning, but it does require them to be open and up front about their spending, and not to overwhelm and outspend the candidates and parties.
Caroline Lucas
I wonder whether the Leader of the House has listened to all the non-governmental organisations that have tried to explain to him that, by and large, they do not organise on a constituency basis, and that trying to allocate the costs in that way is incredibly complex and time consuming. Is he ignoring those organisations because he does not understand how they work, or because he does understand how they work and wants to shut them down?
Mr Lansley
I have listened very carefully to what has been said to me. I think that campaigning organisations often object to constituency limits because they erroneously assume that when they are undertaking a national activity there will be disaggregation to individual constituency limits, because of, as it were, the coincidence of where that activity takes place. It will form part of a constituency activity in circumstances in which there is a significant effect in that constituency; otherwise, it will form part of a national activity. [Interruption.] The guidance will make clear that a constituency limit will apply when there is a significant effect in a specific geographical area or individual constituency, but that when the activity concerned forms part of a national activity, national limits will apply.
We need constituency limits. I do not know whether the hon. Lady is proposing that we should not have them, but when we sent the Bill to the House of Lords, a clear decision made by Members of the House of Commons expressed their belief that it was right to have them. Without them, the national limit could all be spent in individual constituencies: it could be targeted on a small number of constituencies in a way that would completely distort elections that are meant to be between political parties. That is the basis on which the Bill is structured.
Mr Lansley
No. I need to make progress now.
Amendment (a) to Lords amendment 20, tabled by the hon. Member for Nottingham North (Mr Allen), would return the spending limits to a higher level than that for which the Bill provides—effectively, to the current level in the Political Parties, Elections and Referendums Act. It proposes a spending limit of £793,000 for England, £108,000 for Scotland and £60,000 for Wales. The limit for Northern Ireland, as provided for in the Bill, would continue to be £30,800.
During our debate on the last group of amendments, the hon. Gentleman spent half an hour lecturing us about the procedures of the House. He is the Chair of a Select Committee that, on Report, proposed amendment 102, which would have deleted clause 27 and left the spending limits as they were in PPERA. He argued for that, and the House rejected it by a majority of 51. Now he has presented a report to the House—from a Select Committee of the House—which completely ignores the House’s decision. The House has a view on this matter, but the Committee has ignored that view. The hon. Gentleman is simply re-presenting the same argument to the House, ignoring—on behalf of his Select Committee—the fact that the House has already rejected it. If the Select Committee does nothing else, it should take account of the view of the House before submitting a report to the House.
Mr Allen
I wanted to intervene so that the right hon. Gentleman could calm down for a moment and stop wagging his finger at Members.
Had my Select Committee—the majority of which consists of coalition Members—had more than two working hours in which to produce a report, we would have done an even better job; and I can tell the right hon. Gentleman that if we had had the time that he has had in which to produce a Bill, we would have done a damn sight better job than he has managed to do.
Mr Lansley
I shall not wag my finger at the hon. Gentleman, but he has made a ridiculous point. If the members of his Select Committee wanted to produce an additional report, they should have directed themselves to the Lords amendments. [Interruption.] They have not done that. What they have done is reintroduce, by way of an amendment to a Lords amendment, a subject—[Interruption.] Amendments were agreed in the House of Lords. The hon. Gentleman has tabled an amendment whose purpose is not to address the Lords amendment, but to reinsert a provision that was previously rejected, and was not even pressed in the House of Lords.
Both this House and the House of Lords agreed that a reduction in spending limits was sensible. The £450,000 overall spending limit that the Bill now proposes is at a level that few political parties exceed, accounting for the same range of activities. For instance, at the last general election only four political parties—ourselves, the Liberal Democrats, Labour and the UK Independence Party—spent more than that.
Mr Lansley
We have equality of arms under the legislation, although I think I remember that, technically speaking, the Labour party spent more. But we will return to that.
There are about 100 other political parties, campaigning on a national basis, which managed to do so without exceeding that overall spending limit. Surely, if third parties wish to campaign on the basis of involving themselves directly in the influencing of elections, they should be able to do so without spending more than the great majority of the small political parties in the country have chosen to spend.
Mark Durkan
As a member of the Select Committee, I think it a bit rich for us to be lectured on proposing amendments to Lords amendments by someone who is proposing that we reject a number of significant Lords amendments. If the right hon. Gentleman is satisfied that the Bill, as it broadly stands—with the Government’s suggested response to the Lords amendments—is so perfect, why did the Government table Lords amendment 99. which gives Henry VIII powers to Ministers enabling them to change the very law that he says is so perfect?
Mr Lansley
I shall deal with Lords amendment 99 later. What I will say now is that the amendment that we are discussing would leave the spending limit in Northern Ireland as it is under existing legislation, not least because my right hon. Friend the Deputy Leader of the House went to Northern Ireland to meet organisations there and discuss these matters.
The third party spending limit allows for a great deal of activity. That is partly because much electioneering activity can be now conducted by means of new technology at a much lower cost than used to be the case, but in any event a third party could print 40 million leaflets, it could take out a dozen front-page advertisements in a national newspaper, or it could make 780,000 telephone calls from a professional phone bank. That, I think, demonstrates that the limits proposed by Lords amendment 20 are proportionate.
Charlie Elphicke
I note that the hon. Member for Nottingham North (Mr Allen) wants to increase the amounts. Given that elections are meant to take place between political parties, why are the limits so extensive, and why have the Government allowed them to be so high?
Mr Lansley
I am not sure whether my hon. Friend is referring to the spending limits for political parties, or—
Charlie Elphicke
My point is this. Should not the third-party interventions be lower, given that elections are meant to take place between political parties?
Mr Lansley
I understand my hon. Friend’s point. We have set out to strike a balance, and, in Lords amendment 20, we have changed the limits applying to Scotland, Wales and Northern Ireland. On the basis of all those arguments, I ask the House to resist amendment (a) if it is pursued by the hon. Member for Nottingham North.
Turning to amendment (a) to Lords amendment 55, the Government have worked closely with the Electoral Commission to ensure reporting requirements are not overly burdensome. The Government removed the need for nil reporting and have also reduced the regulated period. The regulated period for third parties will commence in September this year, not May, and this will allow additional time for the Electoral Commission to provide guidance and for campaigners to be fully aware of the regulatory regime. Owing to the reduced regulated period, this will impact on the quarterly reporting cycles for the 2015 general election, with the final “quarterly cycle” being compacted from September—three months is a short period running up to the general election.
The hon. Member for Nottingham North has tabled an amendment intending to deal with this situation. However, the Government believe that as this is late in the cycle and only reports of donations over £7,500 are required, third parties will have systems in place to cope with this reduced period. As there is no requirement for nil reports, a period—short or otherwise—will require nothing at all unless a large donation is accepted during that period. It should be noted that third parties will have to provide weekly reports after the Dissolution of Parliament, so the compacted final quarterly cycle will not result in an overly burdensome reporting requirement, particularly in the light of the Lords amendments, which we will come on to, relating to reporting requirements.
On the hon. Gentlemen’s amendment (a) to Lords amendment 59, third parties will have to submit a donations return to the Electoral Commission only where they have received a reportable donation of £7,500 or more. Where they have not received a donation of this value, no report needs to be submitted. This underpins the aim of part 2, which is to increase transparency without placing overly burdensome reporting requirements upon a third party. As is the current practice, under section 96 of PPERA a third party will have to provide a full report of reportable donations three months after polling day. This return is submitted to the Electoral Commission. The Government believe that the section 96 return provides an important safeguard where a full record of reportable donations is provided and visible. This will allow both the Electoral Commission and the general public to ascertain the amount and source of all reportable donations received by a third party during the regulated period. The Government do not believe that this requirement is overly burdensome, as the information will have already been prepared by the third party. It also allows the opportunity for the third party to declare any reportable donations which it has failed to declare previously. This underpins the regulatory regime. We therefore do not agree with the hon. Gentleman’s amendment, which requires the same donation to be reported only once as that would risk a lack of transparency through this section 96 return coming after the election.
Dame Angela Watkinson (Hornchurch and Upminster) (Con)
Most of the correspondence I have received from concerned members of the public is in support of charities, some very small, whose normal activities are not related to the electoral success of a political party or individual. Will the Leader of the House take this opportunity to set their minds at rest that this Bill will not be detrimental to them in any way?
Mr Lansley
Yes, I can, for two reasons. First, only expenditure which would reasonably be regarded as intended to promote or procure the success of a party or candidate might fall to be regulated as election expenditure, and it is demonstrable at previous elections under this regulatory regime that large amounts of policy-related campaigning has been undertaken by charities and that has not required to be regulated. The second reassurance, as we will come on to see with other amendments, is that we are proposing to lift the registration threshold up from the current level of £10,000 to £20,000. That will allow small-scale campaigning by organisations not to be part of the regulatory regime.
Turning to the hon. Gentleman’s amendment (a) to Lords amendment 75, a statement of accounts has to be provided only if the third party has incurred controlled expenditure over the registration threshold. In addition, an individual is excluded from the provisions. Those third parties who prepare accounts under another enactment need not prepare additional accounts if the commission is satisfied they include equivalent information. When a third party registers with the Electoral Commission it must state, using a simple tick box, whether it is an individual or one of the bodies that can register as a third party. From this information, the Electoral Commission can ascertain whether the body provides accounts under another enactment. As a result it would add unnecessary additional bureaucracy to ask the third party to submit a subsequent declaration that it is exempt from the provisions, as the amendment requires. I therefore hope the hon. Gentleman will not persist with that.
Turning to amendment (a) to Lords amendment 99 in the name of my hon. Friend the Member for Christchurch (Mr Chope) and the hon. Members for Foyle (Mark Durkan) and for Newport West (Paul Flynn), the order-making power, to which the hon. Member for Foyle just referred, would allow for the Government only to make consequential amendments. It would not allow the Government to amend the fundamental principles and provisions included in part 2 of the Bill. Any changes to primary legislation would be subject to affirmative resolution in any case. The power is also time limited, so that it could be used only until the date of the next general election. I should emphasise that I hope this power will not be needed, but I consider it prudent to insert it into the Bill, to ensure it is possible to make changes should unforeseen or unintended effects be identified after the Bill receives Royal Assent which could be put right by consequential provision.
The Government have introduced—the Lords is introducing—a number of amendments of significant benefit to campaigners, and we would not want to risk them being ineffective for any technical reason. We agree that it is important to consult the commission and I can assure the House that we will consult it before making an order under this power. The commission in its briefing agrees with this approach. Should the commission make a recommendation to us to use this power, we will consider such a recommendation extremely carefully. Because of the limited scope of the power and this assurance, the Government do not believe it is necessary to accept this amendment.
Baroness Thomas, the Chair of the Delegated Powers and Regulatory Reform Committee in the House of Lords, described the power yesterday as
“well precedented and here it is very narrowly drawn. The House need not worry that the Government are in some way exceeding their powers or doing something they should not on this occasion.”—[Official Report, House of Lords, 21 January 2014; Vol. 751, c. 615.]
Consequently, we cannot support the amendment of my hon. Friend the Member for Christchurch.
Let me turn to the Lords amendments with which we agree. Lords amendments 106 to 107 set out in schedule 8A a consolidated and extensive list of the types of expenses which are excluded from counting as controlled expenditure. Further to the current exclusions provided for in PPERA, the Lords in these amendments extend them to include: expenses related to translating materials from English to Welsh or from Welsh to English; costs associated with providing protection of persons or property in relation to a public rally or event; and reasonable expenses incurred that are reasonably attributable to an individual’s disability. The exclusion of translation costs reflects the position of the Welsh language, which is governed by the Welsh Language Act 1993. Under that Act, the English and Welsh languages have equal status in Wales. This differs from other languages spoken in the UK, where the UK Parliament has not legislated to give them the same status as Welsh.
Lords amendment 19 increases the registration thresholds in the Bill, as I was discussing in response to my hon. Friend the Member for Hornchurch and Upminster (Dame Angela Watkinson). Those were set in the Bill at £5,000 for England and £2,000 for Scotland, Wales and Northern Ireland. The amendment however raises these amounts substantially, from £5,000 to £20,000 for England and from £2,000 to £10,000 in Scotland, Wales and Northern Ireland. This change is in response to the many representations this Government have received from campaigners who spend only small amounts of money and were concerned that the Bill’s transparency provisions, though essential, would in fact impose unduly onerous compliance requirements. It is important to recognise, as many organisations did, that election expenditure should in principle be disclosed and regulated, but there were concerns that smaller organisations would be caught by the provisions. By raising the thresholds to levels that also take into account the extended range of activities proposed by the Bill, small campaigners can be assured that they will not suddenly be subject to administrative controls that they are not resourced or equipped to comply with.
Mr Lansley
Yes. The registration threshold is the threshold of expenditure at which one is required to register, and all the limits for the registration threshold and the total spending limits are in relation to the definition of controlled expenditure which includes staffing costs for third parties.
Lords amendment 20 increases the spending limits—not the registration thresholds—for Scotland, Wales and Northern Ireland by £20,000 each. This is an increase from the levels set in the Bill when it went to the Lords. The new limits will be £55,400 for Scotland, £44,000 for Wales and £30,800 for Northern Ireland. Campaigners have argued that the spending limits for those parts of the United Kingdom were disproportionately low—so low in fact, that they might force campaigners to step aside and not participate in elections. It has never been our intention to prevent third parties from campaigning altogether. They are a key aspect of the democratic process and, to ensure they remain so, the spending limits have been raised to more suitable amounts.
Lords amendment 18 relates to coalitions. It is important to recognise that the Bill did not change the regulatory regime for coalitions, but the debate on the Bill has enabled us to identify a change that will help campaigners that do incur small amounts of expenditure. The Government received many representations on the existing PPERA regime on coalitions. The concern was that the Bill’s provisions would put onerous reporting burdens on them. This fear was particularly pronounced in relation to those who often campaign as part of a coalition.
This new procedure introduces a new framework. A third party may participate in as many coalitions as it wishes. When it takes part in this procedure, it will not have to report for its expenditure, provided it does not incur total spend above the registration threshold—the numbers to which I just referred. The third party would take on the status of a “minor campaigner”. Another third party who agrees to act as a “lead campaigner” in the coalition’s common plan would instead report the expenditure it and the minor campaigner had both incurred. As with the registration thresholds, this provision is also intended to reassure small spending campaigners that new burdens will not be imposed upon them. Indeed, it will reduce the burden compared with the regime in the 2000 Act.
Lords amendment 28 removes the post-dissolution constituency limit of £5,850. Campaigners may now spend the entire constituency limit of £9,750 at any time during the regulated period, or just in the last few weeks before the election if they so wish. That makes it less restrictive and easier to comply with.
Lords amendments 91, 94 and 96 shorten the length of the regulated period for third parties. The regulated period is the time before an election within which only limited expenditure can be incurred, and certain campaigning rules must be observed. Reports must be submitted to the regulator. The regulator, the Electoral Commission and campaigners have argued that they need more time than the Bill would otherwise allow to understand fully the new rules and their responsibilities under them. The Government agree about the need to ensure suitable guidance is in place for campaigners. If the Electoral Commission needs further time to produce this guidance, and ensure it is relevant, clear and useful, the regulated period can be shortened to facilitate that. That is why the regulated period for third parties, for the purposes of the 2015 parliamentary general election only, will be reduced to seven and a half months—starting immediately after the Scottish referendum—instead of the usual twelve months.
Let me stress that the regulated period for political parties is not being similarly reduced.
The Lords have also introduced amendments to allow royal chartered bodies, charitable incorporated organisations, Scottish charitable incorporated organisations and Scottish partnerships to register as a recognised third party. This reflects the fact that the list of bodies that can register as a third party has not been updated since 2000.
The Lords have made further amendments that seek to reduce unnecessary burdens on recognised third parties. As a result, recognised third parties will have to provide a donations report to the Electoral Commission only when they receive a reportable donation of £7,500 or more. There will no longer be a requirement to provide nil reports. In addition, a recognised third party will no longer have to provide a spending return or statement of accounts if it only incurs controlled expenditure below the necessary registration threshold. When a recognised third party has to provide a statement of accounts, this can be sent to the Electoral Commission in a longer time frame—within nine months of the end of the regulated period, if they do not have to be audited, or 12 months, if they do have to be audited.
On non-party campaigning, in order to ensure that the provisions of this Bill are subject to review, Lords amendment 88 stipulates that the Government must, within twelve months of Royal Assent, appoint a person to review the operation of the PPERA provisions, as amended by this Bill, at the next general election. The findings of that review must be laid before Parliament within 18 months of the next general election—that is, by November 2016. The review will provide a unique real-time opportunity to assess how the new regulatory regime is operating, in good time for the 2020 general election.
Lords amendment 87 is not about non-party campaigning. It introduces a new measure to ensure that candidates’ personal expenses will be excluded from counting towards their election expenses limits at local elections in England and Wales. This change will harmonise those arrangements with the existing situation for parliamentary elections, police and crime commissioner elections and Greater London authority elections, at which personal expenses are already excluded from candidates’ expenses limits.
This change has been brought about principally so that disabled candidates are not unfairly penalised for incurring disability-related costs, which can often be quite high. The need for the change became apparent following the creation of the access to elected office for disabled people fund. The fund was established by this Government to provide grants to disabled people who are, or who go on to become, candidates at elections. The fund provides grants to help candidates to overcome any barriers to elected office that might arise as a result of their disability. However, electoral law considered those grants to be personal expenses and therefore deductable from candidates’ election expenses limits at local elections—the one poll where personal expenses counted towards a candidate’s expenses limit.
Lords amendment 87 therefore brings the treatment of personal expenses at local elections into line with the arrangements for other polls where they are already exempt. It would be particularly unfair to penalise disabled candidates standing at local elections for accepting fund grants or even incurring their own disability-related costs. The amendment does not as yet extend to local elections in Northern Ireland or Scotland, as those polls are devolved. However, we will work with the respective Governments to ensure that there is consistency.
Much work has been done in this House, in the Lords and with external stakeholders to ensure that the Bill meets the principle of enhanced transparency for third parties who want to influence the outcome of elections, while preserving the essential freedom to speak out on issues. I should like to thank those who have contributed to the debates, and I reiterate my thanks to my noble Friends in the House of Lords. As has been said many times before, the purpose of the Bill is to bring greater awareness and clarity to campaigning activity. I believe that, through these amendments, that is what we can achieve.
Madam Deputy Speaker (Dawn Primarolo)
I now have to announce the result of the deferred Division on the question relating to the draft civil legal aid regulations. The Ayes were 304 and the Noes were 231, so the Question was agreed to.
[The Division list is published at the end of today’s debates.]
Stephen Twigg
There are many other examples that I could quote. I chose to quote Sir Stephen, but I could have quoted many other figures. I am sure that the hon. Gentleman is as aware as I am that there is pretty much unanimity among civil society, left to right, on this question. I will come back to that very point in a moment.
In an attempt to improve what we see as a flawed Bill, we support Lords amendment 45. It is an amendment of incredible importance to campaigning groups and charities. It is clear and simple, and calls for the removal of background staffing costs from activities such as press conferences, media events, transport costs and public rallies. We absolutely support the aim of transparency and accountability. The amendment is not designed to take these activities out of the parameters of the regulation. It is about removing the background staff costs from the activities set out in new schedule 8A.
Stephen Twigg
I will take the Leader of the House at his word. Let me say “the relevant amendment”. I believe this relevant amendment is modest. It is primarily about not the costs themselves but the additional bureaucracy that this would involve. For many smaller charities, it would be incredibly difficult to differentiate the amount of time that the staff member spends on these activities from the time they spend on other activities. My hon. Friend the Member for Denton and Reddish (Andrew Gwynne) mentioned Lord Harries of Pentregarth. What he said in the other place is worth considering. It is easy to assess the amount of money that one will spend on hiring the hall for a public rally, because there is an invoice. However, there is no invoice for a member of staff or for the 10% of the time spent over four weeks carrying out the work.
Stephen Twigg
We are talking about 4%. I do not have the information to hand—that is the honest answer to that question.
Mr Lansley
The answer to the question from my hon. Friend the Member for Dover (Charlie Elphicke) is Unison, which did not include staff costs.
Stephen Twigg
So this is what it is all about. Unison, on behalf of its members, spent 4%. The Conservative party spent 25 times as much as the biggest third-party spender, which suggests that this is a solution in search of a problem.