Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Baroness Primarolo Excerpts

Wednesday 22nd January 2014 Commons Chamber

[Several hon. Members]

rose—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. May I inform the House that we have just 30 minutes left for this part of a timed debate? A lot of Members are indicating that they would like to speak. May I ask each of you to help each other out so that we can try to get everybody in before the 30 minutes are up?

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[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.”

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[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]

A total of 1 hour and 50 minutes has been allocated for this important debate on part 2 of the Bill, and the Leader of the House has just spoken for almost three quarters of an hour. That leaves the rest of us just over an hour to address an issue on which Members on both sides of the House have received dozens of items of correspondence in the past few days.

Let us remind ourselves that the Bill started out as a lobbying measure. It was meant to be the Government’s response to what the Prime Minister called

“the next big scandal waiting to happen”.

However, the Bill has been a disaster from the very beginning. It was meant to address the next big scandal; instead, it has turned into an attack on civil society, on campaigners and on trade unions. It was meant to fix our broken politics; instead, it risks stifling free and open democratic debate. It was supposedly about stopping big money coming into our politics; instead, it creates the risk that civil society will face unnecessary and burdensome regulations.

It was noted in our earlier discussions on part 1 that the process by which the Bill has been conducted through Parliament is entirely in line with the draconian nature of the Bill itself. There has been a distinct lack of scrutiny at every stage. It has been a shambles. Deliberations on the Bill in the other place finished yesterday—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I am listening carefully to what the hon. Gentleman is saying. It is very interesting, but I must remind him that this is not a Third Reading debate. His remarks should refer specifically to the amendments before us, and I presume that he was about to speak to them before I interrupted him.

[Stephen Twigg]

I am grateful to you for that, Madam Deputy Speaker. I will deal with the amendments in a moment, but it is important that we consider the context, because the speed with which the Bill has been considered, particularly in the past few days, has affected the ability of Members in this House to propose amendments in lieu of the Lords amendments. As my hon. Friend the Member for Wigan (Lisa Nandy) said in the debate on the previous group, Baroness Williams of Crosby said yesterday that the timings, whereby the Lords finished yesterday and the Commons resumed consideration today, are “ludicrous”.

In moving on to deal with the amendments, I wish to praise one of the proponents of the amendments in the Lords, the former Bishop of Oxford, Lord Harries. He has worked diligently to propose sensible amendments on behalf of his Commission on Civil Society and Democratic Engagement in an attempt to improve a deeply flawed Bill. Weeks of engagement, careful drafting of amendments, debate and consultation led to a position where, as has been said, the Government were defeated on three amendments, one in part 1 and two in part 2. As the hon. Member for St Ives (Andrew George) said, there are lessons to be learned by this Government from this process. Some of these issues might not have arisen had the Government published this legislation and enabled pre-legislative scrutiny to take place.

I congratulate my hon. Friend the Member for Nottingham North (Mr Allen), the Chair of the Political and Constitutional Reform Committee, and all the other members of the Committee. As my hon. Friend reminded us, the Government parties have a majority on the Committee yet it offered a damning indictment of the way in which the Bill has been handled. The Committee stated:

“The haste with which Lords amendments are returning to the Commons is yet another example of the way in which this Bill has been rushed through Parliament. The timetable that the Government has imposed for this Bill indicates a contempt for Parliament and a lack of belief in the value of parliamentary scrutiny.”

I remind the House that last September we asked the Government to think again.

[Madam Deputy Speaker]

Order. Context we have got, time we have not. Therefore, the hon. Gentleman should now move on from the context—we are not on Third Reading—to the specifics. Other hon. Members are waiting to speak.

[Stephen Twigg]

Thank you, Madam Deputy Speaker, and let me move on to address some of the specific Lords amendments. First, may I welcome changes that have been made which respond to concerns that have been raised by civil society, but I urge the Government today, notwithstanding what the Leader of the House has just said, to go further and accept the Lords amendments on staffing costs and on constituency limits? Raising registration thresholds is a sensible move that will stop many small and local campaigners becoming entangled in complicated and burdensome regulations. Allowing large campaigners to provide a single expenditure report on behalf of a coalition of smaller campaigners will incentivise and help collaborative working by organisations of different sizes. Simplifying the reporting regime is also a sensible reform.