(8 years, 11 months ago)
Lords ChamberI am most grateful to the noble Baroness, who, with her great experience in the European Parliament, knows all about gaming the system. I am coming on to the point about gaming the system because we have already had examples. My friend and former colleague from the other place, Sir Eric Pickles, has already written to the Electoral Commission saying that the leave campaign should not be designated because it had upset the CBI at its conference and sought to expose that it was one-sided.
If we have those sorts of games being played, where people try to knock out one campaign in order to allow another campaign an advantage, that is gaming the system. This amendment makes it effective because it means that if people were able to persuade the Electoral Commission not to designate a campaign on one side, the other side would have considerable advantage, including even more expenses to spend on the campaign than are already provided in the Bill.
I am disappointed that my noble friend is not seeking to press his amendment. It is of course a matter for the House but I look forward to hearing from my noble friend the Minister how she believes it will be possible to deal with complaints if those who wish to stay win by a very narrow margin and people argue that it was an unfair campaign because one side was allowed to spend far more than the other.
My Lords, I, too, welcome the government amendment. It addresses the specific issue of gaming in the unlikely event that a group of people tried to disadvantage one side or the other, by addressing the facilities that are given to designated lead campaigns. Under PPERA, those lead campaigns are given certain opportunities to communicate to the electorate. What the amendment does not do, quite rightly, is stop other voices.
I get the impression from the debates we have had on the Bill that somehow we are all going to be corralled into one campaign or the other. I think it very unlikely that the leave campaign will stop UKIP—or any other political, campaign or community group—expressing its opinions. I hope the referendum will result in a multiplicity of voices that cannot be legislated for or corralled. I welcome the amendment and the way in which the Government have addressed this particular risk, which is now minimised.
(9 years ago)
Lords ChamberI am going to repeat some of the arguments I made in Committee because I think that this amendment is basically doing the same thing.
There is an assumption behind the contributions we have heard so far that we are dealing with a pot of money. We are not. We are dealing with a spending limit. We are not dealing with an allocation of funds that should be distributed fairly. Perhaps we could do that. I have not heard many noble Lords opposite support state funding of political parties, but that is the only way to guarantee fairness.
I am really surprised by the noble Lord, Lord Willoughby de Broke. Let us say the leave campaign got all the money in, spent the upper limit and then it was discovered that UKIP spent more than the limit. UKIP would then have to give all its money back. That is the reality. You are trying to set a limit when you do not even know who is going to be participating in the campaign.
First, it is not a pot of money to be spent. Secondly, this referendum is not going to be fought by just two sides. Political parties, civil society, trade unions, churches and other groups that have an opinion will not keep their mouths shut simply because the Conservative Party is unsure of what position it will take as a whole. Perhaps the noble Lord, Lord Lawson, is correct that this whole thing about registration and the Conservative Party not registering is more to do with the state of the Conservative Party than the rights and wrongs of how the referendum campaign should be conducted.
I do not know whether the noble Lord has had a chance to read my amendment, which is completely different from that which he made a speech about in Committee. But I am following his argument so would I be right in deducing that he would be quite happy to have no limits at all?
No, I would not because the Electoral Commission is trying to address quite a complex situation. A referendum is not a usual situation. Political activity in this country is predominantly, although not wholly, through political parties, and PPERA sets out all kinds of constraints and limitations on donations. It has created an environment of transparency, and spending limits.
My view is that spending limits are not particularly effective in establishing a level playing field, particularly when they are set so high and no one can ever reach them. That is why we have quite big imbalances in general elections. That is why the Conservative Party regularly outspends the Labour Party: it has at least 300 people who can give more than £50,000 a year to the party, which I suspect is why the party has in the past supported a cap of £50,000 on donations. Personally, I think the smaller the cap the fairer it becomes. You would then have to look at how to replace that money and what mechanisms to use to ensure that there is an allocation of public funds on a fair basis—hence, I suspect, why the Electoral Commission is using that methodology.
The fact is that spending limits are not the whole picture. What the Electoral Commission is trying to say to us is that the “remain” and “leave” campaigns are not the only participants. We are not going to silence everyone else in this referendum. We are not going to say to civil society, “You have no right to speak”, and we are certainly not going to say to UKIP, “By the way, you will have no right to spend money in this campaign unless it is through the official ‘leave’ campaign”. I do not think that it would tolerate that or accept it—I would not—but that would be the effect of the noble Lord’s amendment. We cannot be certain of what other people will be spending and we do not know the number of participants.
The rules should not be used to reduce the number of participants. That would be unfair and not democratic. I do not want to bang on too much about this, as I have given sufficient reasons why we will not be supporting this amendment, but it is clear that the amount of money available will not be determined by rules set out in the Bill. It will be determined by people donating and raising money. I do not think that even the Conservative Party, if it said that it would register, could put its hands on £20 million that easily. I certainly know that the Labour Party cannot put its hands on £9 million that easily. We have to understand that these are mechanisms to ensure transparency and accountability but they will not necessarily deliver fairness because the campaign is not designed that way.
But my noble friend is the Government. It is not necessary to rely on the provisions in the PPERA legislation. It would be perfectly possible to put in place arrangements with regard to expenditure that ensured fairness. Once this legislation is in place, if it remains as it is, throughout the whole campaign I certainly will be arguing that it has been rigged in a way that gives an advantage to people who wish to stay in the European Union. I can understand why the Labour Party may feel at the moment that it may not be able to get lots of funding from people, but there will be people who will see this as an opportunity to provide more resource for what they believe to be an appropriate decision for the country. If we end up with limits that have the perverse effect of giving one side more funds than the other, it will be a source of grievance throughout the campaign—and if we end up with a close result, as has already been pointed out, people will argue that the result was bought and that it was unfair.
I understand the difficulties from the Government’s point of view, but to argue that legislation that was passed in 2000, which was thinking of referenda where, by their very nature, political parties would be divided, as opposed to this European issue where the first referendum was about sorting out the problems in a divided Labour Party—
I do not think the noble Lord is in a very good position to talk about divided political parties at the moment. If I were him, I would keep my head down on that subject.
It is very disappointing that my noble friend is not able to respond, and I hope that she may give further thought to this and that the vastly expensive Electoral Commission with its vast resources may be able to be a little more constructive than saying that it is all a political problem for which it has no responsibility. I will reluctantly withdraw the amendment because I do not think that if I divided the House at present it would be much appreciated by my noble friends or anyone else, but the response is very unsatisfactory and I think it will be a source of grievance unless it is addressed before this Bill reaches the statute book. I beg leave to withdraw the amendment.
Because it seems to me that if it did not include the European Union and the European Commission, it would make something of a nonsense of the argument that he put forward. Perhaps my noble friend could indicate what the position is.
I have one brief question relating to Gibraltar. Political parties currently are not permitted to accept donations from Gibraltar, but when the Bill becomes enforceable they will be if it is for the purposes of the referendum. I want to understand how the amendment will impact in particular on the changes relating to Gibraltar.
(9 years ago)
Lords ChamberMy Lords, I will speak to Amendment 37 in my name and that of the noble Lord, Lord Blencathra, and also to say how much I support the amendment just proposed by the noble Lord. I think that this might be a first in consideration of this Bill, but I think that it is a very sensible proposal.
Amendment 37 is following the same theme, which is ensuring that there is fairness in the conduct of the campaign. I was rather shocked this morning to read Hansard from the other place, where Mr Chope asked the Deputy Leader of the House of Commons to,
“confirm that the real reason why three independently minded former Ministers are being purged”,
from the Parliamentary Assembly of the Council of Europe,
“is because we voted in favour of a free and fair EU referendum with a strict 28-day purdah period, as recommended by the Council of Europe’s Venice Commission and our Electoral Commission?”.—[Official Report, Commons, 3/11/15; col. 887.]
I do not want to get involved in that particular row, except to say that Christopher Chope, Sir Edward Leigh and Cheryl Gillan are three very distinguished former Ministers, and I am very shocked that they should be removed from the Council of Europe, and even more shocked that it should be suggested that that is the reason for their removal.
I emphasise this point because, whatever the outcome of the referendum, it is important that at the end of it people feel that the Government did not abuse their position—whatever their position turns out to be—and that the campaign was conducted in a fair and balanced way. This, presumably, is why we have the Political Parties, Elections and Referendums Act 2000.
My amendment seeks to remove from political parties their ability, which arises from the 2000 Act, to spend money on the campaign itself. I thought that the whole point of having an Electoral Commission—which, incidentally, costs half the cost of the entire Royal Family—was to ensure that we had fair and balanced conduct of elections and referenda. That is what I thought it was about. I thought the whole purpose in having a designated campaign on each side with limitations on their expenses was to ensure fairness. But what do I find? I find that the Government have brought into the Bill the ability of the political parties to spend money in addition to the designated campaigns. In the case of the designated “in” campaign, it can spend £7 million; in the case of the “out” campaign, it can spend £7 million. That is fair enough; but then on the inside, the Labour Party can spend £7 million; the Liberal Democrats can spend £3 million; the Greens can spend £700,000 and the CBI and other organisations can spend £700,000.
The Conservatives have said that they will remain neutral—and it is very considerably to the credit of the Conservative board that it took that decision.
Did I not hear the noble Lord say that he thinks the amendment proposed by the noble Lord, Lord Hannay, is fair and reasonable because it is not right that people game certain situations? Political parties have a right to campaign on issues that they feel united about and on which they have had support from the electorate. If there is a problem with the Conservative Party, I do not see why the noble Lord should take that view and extend it to other political parties.
The noble Lord should not assert something that is not true.
What is not true: that Jeremy Corbyn is not leader of the Labour Party or that Jeremy Corbyn was not in favour of leaving the European Union? I will give way to the noble Lord if he tells me which statement is not true.
The Labour Party’s policy is perfectly clear. The problem we have in this debate is that the Conservative Party does not have a clear policy. I do not see why the noble Lord should impose, through his amendment, his problems on to other political parties, including the Scottish nationalists and other major parties.
The noble Lord is suffering from the disadvantage of not having listened to what I am going to say. Perhaps when I have said it, he might want to come back on that point. I am simply pointing out that all these political parties have the ability to spend money in addition to the designated campaigns. If you add that up as it is set out in the Bill, those who wish us to remain inside the European Union will be able to spend £25.5 million and those who wish us to leave, together with the political parties—because UKIP will be able to spend £4 million—will be able to spend £11 million. That seems to me to be a tad unbalanced.
As the noble Lord knows, all political parties have people with different views on this matter. That is why we need to have a designated campaign, so that people of all political parties and persuasions can join together and make their case, whatever it is. This Bill, which raises the limits, makes the position even more unfair. Before the Bill, under the rules set out under the 2000 Act, the “in” campaign could have spent £20 million and the “out” campaign £10 million: twice as much for those who wish to maintain the status quo. As a result of this Bill, the figures are £25.4 million and £11 million —2.3 times as much. That simply is not fair. At the end of the day, as we know from American elections and elsewhere, the ability to spend money can have a marked effect on the result. If the campaign to stay in is successful, the last thing we want is people arguing that the referendum result was bought, that it was unfair and that it was led by big business and big money. I am surprised that the Labour Party, of all parties, is seeking to defend this position.
It is tempting to come back by asking what happened in the 2015 general election. Who had the most money? Do we call that into question? Who paid for it? I know exactly how much the unions gave the Labour Party, and I know how that money was collected. The corporate hedge funds gave money to the Conservative Party and enabled it to outspend every other party. Does the noble Lord not feel that that was unfair?
My Lords, I know the noble Lord has never stood for election, so perhaps he is unfamiliar with this, but we have strict rules governing how much the parties can spend in general election campaigns. They are designed to ensure that we have fairness. What I am complaining about is that the rules in the Bill give an unfair and disproportionate advantage, and that the amendment to the Political Parties, Elections and Referendums Act makes that even worse. That seems completely unfair, which is why I suggest that we reduce the figures that can be spent by the various political parties. In the 2000 Act, that is done as a percentage of the vote. Originally, it was £5 million if a party exceeded 30% of the vote, £4 million if it exceeded 20% but not 30%, £3 million if it got 10%, £2 million if it got 5% but not more than 10%, and £500,000 if it got not more than 5%. If we reduce all these numbers to zero, we will have a fair and balanced campaign, which is what my amendment seeks to do. I would have thought that everyone in this House would be in favour of that.
The point is that the Conservative Party, under the PPERA, is able to spend up to £7 million on the referendum if it chooses to, as a registered participant. If it decides not to register, why should its decision impact on other parties which have policies and desires to campaign for in this referendum? That sounds undemocratic.
I agree with the noble Lord, which is why I want to make sure that all parties cannot spend any money at all, and that the people who can spend the money are the designated campaigners, so that there is a fair basis. I beg to move.
My Lords, it has been an interesting debate. One of the problems with referenda is that they assume there are simply two sides to an argument, when actually there are often lots of different opinions and reasons why people may wish, in the case of the European Union, to stay in or to leave. The interesting thing in this debate is that we have heard that UKIP will wish to argue its case strongly as a political party. We have heard the Conservative Party saying no, we are not going to do that. In effect, the amendment from the noble Lord, Lord Forsyth, will limit UKIP to £10,000—it will not be able to spend more than that—while if, for example, Unite registered as a participant, it could spend £700,000, as could any other organisation or individual if they registered properly as a participant.
The real issue here is how we have a fair political debate: how we ensure that all the different views in favour of remaining or leaving are properly expressed. It is clear, as we have heard, that there is a problem among those who want to leave. They do not appear able to reconcile their differences and come together as one—perhaps because they have absolutely different views about why Britain should leave. The Conservative Party has clearly not been very keen to sit on platforms with UKIP to argue its case, and certainly individuals within the party have not been keen to join in. The idea that political parties should absent themselves from this campaign is purely ridiculous.
The noble Lord keeps repeating this. Nobody is suggesting that political parties absent themselves. I am listening carefully to his argument. If you decide to have a cap on expenditure, it has to be fair to both sides. If the noble Lord is arguing that there should be no cap, that is an entirely different position. The Government’s position—arising from the 2000 Act—is that there should be a cap. Therefore, it is not that the political parties cannot participate, but that the vehicle through which they participate consists of the two campaigns. If the noble Lord is arguing that there should be no cap, I can see where he is coming from, but he seems to be arguing that there should be a cap and that the available expenditure should be unbalanced. That is ridiculous.
Actually, I am arguing that all participants in the referendum should properly account for what they raise and what they spend, and that that be recorded and sent to the Electoral Commission. That is what I am arguing for. We have heard in the debate that somehow you can create a level playing field by setting a cap on the total amount spent. What, then, is the noble Lord saying: that the “remain” campaign and the “leave” campaign agree beforehand exactly what they are going to spend and then say that is what they are going to do?
I know what caps do. I, too, have had a debate about political funding, and some dialogue with the Conservative Party about funding election campaigns. The caps on spending were important in trying to stop this continual outbidding of each other, but no political party has ever reached the cap that has been set in general elections. The Conservative Party has consistently outspent the Labour Party in general elections. There certainly has not been a level playing field. There is only one way to achieve a level playing field: by saying that £20 million from the government purse will be provided for this campaign and that it should be divided equally and then spent.
I do not, however, think that that is what noble Lords want. What noble Lords want is a fair and open debate. Political parties have an important role in that and the idea that you can cap the Labour Party’s spending to £10,000 on arguing its policy—and it does and will have a policy—is absolutely ridiculous. It is not right or fair to the democratic process. My opinion is not simply that of my party; it is also that of the Electoral Commission. The commission says, first, that, irrespective of the cap, there can be no certainty that there will be equal resources. This is a bit like a general election, where we have had caps on spending but there has been no level playing field in respect of the money that can be spent.
The other aspect of this is that everybody’s talking as if £7 million, and £5 million, is going to be available. Political parties, however, will have to raise the money. They will have to account for it. This is what all the amendments in the first group were about: transparency. The public will be more interested in transparency than the notional caps that the noble Lords opposite are talking about. People will certainly want to know who is funding the yes campaign, but they will also want to know who is funding the no campaign—who is behind it: perhaps the hedge funds or the businesses that simply see an interest in being outside.
All these things are important, but, as the Electoral Commission has said, the number of participants on each side should not be artificially limited by rules. We have seen that UKIP will want to play its part in the referendum campaign and to put its case, irrespective of whether it participates in a joint campaign. I know that the Labour Party will want to put its case strongly in respect of the social dimension to Europe and how Europe has defended workers’ rights. I do not think that the Prime Minister will necessarily wish to be part of that campaign. We will put our case, and the idea that you simply limit the Labour Party’s spending to £10,000 is not acceptable.
I strongly support the amendment from the noble Lord, Lord Hannay, not least because—this is the strongest case for it—when this was considered previously it was thought appropriate to put it in the Scottish referendum. If it was appropriate for Scotland, why is it unnecessary for this referendum? Clearly, it is.
Regarding my noble friend’s amendment—we raised this issue in Committee on Monday—the Government will come to a decision. They will need to report that decision to the people of this country. It is important that the Government’s decision is not mediated solely through these campaigns, which noble Lords opposite seem to think will have a clear view about the reasons for leaving or staying. It is really important that the Government communicate with the electorate, so they understand what the Government have negotiated and can come to a conclusion. The argument that it can be mediated only through a yes campaign or a no campaign is not acceptable. The Minister may not accept my noble friend’s amendment but I hope the Government will think seriously about how the conclusions of the negotiations are communicated properly to the electorate without being mediated through a third party.
Can the noble Lord explain where he gets this £10,000 figure from?
If you are not a permitted participant in the referendum, under PPERA you are limited to £10,000. That amount is also recorded in the Electoral Commission’s briefing, and I know that the noble Lord is very keen to support the role of the Electoral Commission.
I would have thought that,
“£500,000 in the case of a person or body falling within section 105(1)(b) but not designated under section 108”,
might apply.
Political parties are treated differently, as the Minister indicated at the outset. The fact is, they are different. They are covered, as she said, by separate elements of PPERA. If political parties do not register as participants in the referendum, they will be limited to spending £10,000. I do not have to answer for the Conservative Party but, in effect, by advocating this amendment noble Lords are saying to local Conservative associations, “You cannot use your office, your staff or your resources in this referendum campaign because if you exceed £10,000, the Conservative Party will be acting illegally”.
Of course, in the other place the Opposition resisted strongly the disapplication of purdah provisions and the other place agreed with that. Therefore, our position is quite clear. Obviously, however, Clause 6 was agreed to in the other place. I hear what the noble Lord, Lord Forsyth, is saying, but I am not sure that I quite understood his interpretation of the noble Baroness’s remarks. There is clear indication that there is no intention to lay regulations. There may be a risk, but we do not know: there are unforeseen circumstances. I am assuming that Clause 6 will be retained, and we would support that if it enables the Government to respond to something unforeseen. I assume that is what the noble Baroness is saying, and that is why we would support that. I am certainly sympathetic to the views expressed by the noble Lord, Lord Kerr.
Before the noble Lord leaves that point, could he give one example of something that might justify making the regulations?
I fear I might sound like Donald Rumsfeld if I did—talking about the unknown unknowns and the known unknowns—and I will resist the temptation. I will leave it in the capable hands of the Minister to give those examples.
However, this group of amendments gives rise to some issues, including how we define the actions of Ministers and special advisers, and the question of acting in a personal capacity. I fear that all these things are incredibly difficult to prescribe, not least: when is a Minister not a Minister; when is a spad not a spad? What about when they are working at home at weekends? The situation is clear with matters such as having no government transport, or no paid facilities when campaigning.
(9 years ago)
Lords ChamberI was not implying in any way that health and safety is not important. Indeed, I was a Health and Safety Minister in the Department of Employment for at least a year. The point I was making was that employment rights, when we signed up to them, were subject to unanimity and we had a veto. They were then presented as health and safety in order to get round that and make it possible to change them by qualified majority.
I hear what the noble Lord says but I think these issues will be part of the general debate and I do not want to use these amendments for a broader discussion. The only point I will make, in relation to the debate we had on Amendment 2, is that there is a point in the process of negotiations where people put forward demands that they know full well cannot be achieved. In the Labour movement, we used to call people who made those sorts of propositions Trotskyists. I do not know whether the noble Lord, Lord Forsyth, would be offended, or would think that it was unparliamentary for me to use those terms, but sometimes, I have to confess, he does sound like a little bit of a Trot.
In view of the person who now leads the Labour Party, I suppose I should take that as a compliment.
My Lords, I am tempted to stray on to the next group, which the noble Lord, Lord Green, has mentioned, because there are obviously a lot of issues here about what is citizenship and what is entitlement to vote. Of course, for historical reasons, entitlement to vote in this country is very complex and has developed over a long time. The link between the right to abode in this country and a British passport has been broken. We are changing that situation gradually, but it is very complex.
I have some sympathy with the comments of my noble friends Lord Liddle and Lord Foulkes because I must declare an interest: I am married to a Spanish citizen who came here to work and has been here for 20 years, and who does participate in civic life in this country. He regularly votes for his local councillor and considers himself an EU citizen. He considers himself part of a European Union and I think the problem we have in terms of this referendum is that it will undoubtedly cause him concern if Britain votes to leave the EU. No longer will he have that common bond; he will be told that he is simply a visitor here.
The noble Lord may raise a question here about residents having the opportunity to apply for citizenship and I will return to that, but I want noble Lords to address a number of questions which I would like the Minister to answer. Whatever conclusion we make, there are nearly 2 million people who have been living in this country and participated in civic society who deserve some clear answers.
When we came to a question about the future of the United Kingdom and a referendum was held in part of the United Kingdom, in Scotland, the decision was taken that the appropriate electorate for that decision was the franchise for the Scottish parliamentary elections—the local government franchise. No one disputed that at the time, as my noble friend Lord Foulkes said. Now I think citizens of the European Union—because that is what they are—who work here and have lived here for some time will ask if they vote for British representation—
On the point that no one disputed the franchise, I certainly received many, many letters from people who were Scots living in England complaining that they did not have a vote in the Scottish referendum and that people who had come here from other European countries on a short-term basis—shorter than the noble Lord’s partner—perhaps to work for only one or two years did have a vote. It was by no means uncontroversial.
I know it was not uncontroversial because the previous Government conceded a referendum on the future of the United Kingdom where all parts of that United Kingdom would have said that they wanted a say in the future of this United Kingdom. That did not happen. I think that is a legitimate point to make. My husband is not my partner any longer—we have now been able to change that—but he and the 2 million people who came to this country and are here on a certain understanding are going to be faced with the prospect of radical changes in their circumstances without having any say.
I raised the point of Scotland, as did my noble friend Lord Foulkes, but when we come to British representation in the European Parliament, European citizens are entitled to vote for British representation in the European Parliament, not French or Spanish or whatever. My husband does not cast his vote in the European elections in Spain; he casts them here for British representation. They deserve an answer to that question and they deserve to know why you are choosing the Westminster franchise when maybe—as in Scotland or in Wales—the appropriate franchise would be the people who are most affected.
Of course as we come into the other debate on the next group, there is an issue about people who have resided here who can obtain the right to vote and get the Westminster franchise if they become British citizens. In the media last week, there were clear signs that people are concerned about their status changing and are therefore willing to fork out nearly £1,000 to obtain British citizenship. Maybe my husband will make that same decision—partly because he does not have to break his ties with Spain but can obtain dual nationality. That is not the case for everyone.