(10 years, 7 months ago)
Lords ChamberMy Lords, I am in a cleft stick; I have indeed got 15 minutes on the Clock, but my noble friend will accept that I have been interrupted five times now, which takes a wee bit out of one’s available argument time. I will keep this as short as I can. It is unfortunate—let us put it that way—that we have a letter at the 59th minute of the 11th hour which is, at best, unclear.
I know that a number of my colleagues have different points to make. It has been said, time and again, that there should be a level playing field between non-charitable NGOs and charitable NGOs. Well, yes and no. First, we have a whole lot of improvements for the non-charity NGOs. Secondly, however, the reason we persist in seeking this important change is precisely because charities are basically different in kind, not just because they have a separate branch of law and a separate regulator.
The bureaucratic consequences for charities having to meet the demands of two regulators will be significant. Although the thresholds have been raised, which is important, the number of charities that will still be swept up by this legislation is far greater than many Members of this House may think. It will be many thousands. It does not take a great deal to rack up £20,000 if you are a charity with a few branches around the country.
Secondly, given that the vast majority of charities have no paid staff, the people who will have to implement this complex bureaucratic stuff are not professionals but volunteers. Simply tooling up a charity that is wholly run by volunteers to cope with this new regime and all that it means will be a massive and demoralising task for so many of them. Frankly, volunteers do not want to spend their precious hours getting to understand the legislation that we are in the process of putting on the statute book and then trying to get to grips with it in practical terms, filling in the forms and all the rest of it. The consequences, I put it to the House, will still be huge, despite the number of charities that are, on the face of it, taken out of the purview of these provisions by the raising of thresholds and the rest of it. I cannot emphasise that too strongly.
Let us suppose that you are a trustee of a charity. You will not have a paid chief executive, so it may be a senior volunteer who comes to you and says, “Look, Mr Phillips, we have this new legislation. We do not think we are touched by it because we do not think we will reach the threshold, but what do you want us to do?”. I am afraid an awful lot of trustees will say—
Not only the Charity Commission opposes this amendment; the Electoral Commission does, too. Also, we have a situation where the Government have given way on the review period. We argue there is going to be a review of this piece of legislation, so if the matters that the noble Lord is so concerned about come to pass, the review will pick them up. We are now in supposition territory. I hope that the noble Lord will reflect on that before deciding what to do with his amendment.
I certainly will. I am grateful for that point, because I was going to say that a review of this will be essential in light of what happens at the next general election. Indeed, the noble Lord, Lord Hodgson, tabled an amendment that I think—
It is now a government amendment, so we are going to get it—and that is vital because we will learn a great deal after that. I will just finish the point that volunteer trustees, perfectly understandably, are going to be cautious about this new legislation. The last thing in the world they will take a risk with is the prospect that things may get a bit out of hand or may not be perfectly understood, and that they, the trustees, will end up being personally liable. As I am sure everybody hearing this debate knows, they are personally liable. It does not matter if they are a limited-liability charity.
All in all, therefore, these are some of the reasons—I think other contributors to the debate will add others—that we should avoid the huge confusion that will follow if we subject charities to both charity law and electoral law. For good reason, I will not detain the House now beyond saying that this is still a very important issue that touches a hugely important part of our civic society—the very part of our civic society that does so much to uphold and vivify election campaigns. I beg to move.
My Lords, I intervene very briefly. I tabled an amendment on coalition working and I am very grateful to the Government for adopting this way forward.
The other issue that charities raised frequently was the question of nil returns. I know that we shall come to nil returns later under government Amendments 81 and 89, but that, I hope, will cross-ruff into this amendment. In other words, we will make sure that when the new rules for coalition working come in charities will be able to take advantage of the nil return provisions, which the Government properly propose in Amendments 81 and 89. I should be grateful for the Minister’s clarification on that.
I, too, welcome the government amendments and repeat something that I have said on earlier occasions about the importance of getting the issues about coalitions right in relation to the criminal justice system. If you look at the transforming rehabilitation revolution, you will find that the Government are trying to encourage coalitions to take on the supervision of offenders. They consist of a large number of different organisations, private and voluntary, and it is important that they are crystal clear on anything to do with coalitions before they are formed to take on that very important public work.
My Lords, I will detain the House only for a moment to thank my noble friend and the Government very much for having listened to the persuasive arguments put forward by the Law Society and others and for providing a way forward for CIOs, a new corporate form that has emerged since PPERA was passed. There are more than 1,000 royal charter bodies. This is a very helpful and beneficial result and I thank the Government for it.
My Lords, I welcome this group of amendments. I said at Second Reading that the Government and, indeed, the House, have a very difficult task in getting exactly the right balance between improving transparency and accountability on one hand and the inevitable potential for more bureaucracy. These amendments are a real improvement on where we were and I commend my noble and learned friend for them. The irony is, however, that we have the complexity of the number of amendments—I have not counted them—that have been necessary to remove complexity. It is a bit alarming, but I particularly welcome the amendment concerning the nil return, which is Amendment 98 if I have got it right.
It is particularly helpful because there really was rather an absurd situation when the organisations with which Members on all sides of your Lordships’ House have been in contact thought that they might be caught up in some elaborate new accountancy exercise when they did not anticipate that they would be engaged in the kind of activities that are caught by the Bill. This is a good balance and we are achieving the right threshold for transparency and accountability, but I just forewarn my noble and learned friend that it will take some time for the organisations that we have all been in contact with to understand the full significance of this battery of complex amendments.
My Lords, I add my thanks to those of my noble friend Lord Tyler, particularly for Amendments 81 and 89, which concern nil returns. It was extraordinarily difficult to justify to people why nil returns should be made. I am also very grateful to my noble and learned friend on the Front Bench for his reassurance about the interaction with the coalition working returns that we discussed earlier.
My Lords, while I welcome the government amendments, I draw the attention of the House to the report of the Electoral Commission on Amendments 74 to 81, 83 to 97 and 99 to 106. It says that it supports the amendments,
“which go some way to simplify the donation reporting requirements”,
but it goes on to say:
“We regret that the Government has not adopted other recommendations we have made to reduce burdens on registered campaigners further without affecting transparency”.
It indicates what these are and ends:
“We continue to recommend these changes … we now recommend two further changes to reduce burdens further”.
Will the Minister, even in the short time between now and Third Reading, have further conversations with the Electoral Commission to see whether some of its recommendations could be accepted by the Government? From the point of view of the charities and campaigning groups there is still a huge amount of regulation to be carried with the Bill.
My Lords, government Amendment 118 requires that within 12 months of the Bill receiving Royal Assent, the Minister must appoint a person to review the operation of Part 6 of PPERA as it is amended by Part 2 of the Bill. Noble Lords will recall that in Committee there was some debate about the need for a post-legislative review of the provisions of Part 2.
I am most grateful to the noble and right reverend Lord, Lord Harries, and my noble friend Lord Hodgson of Astley Abbotts, who tabled amendments in Committee to ensure that this important matter was discussed. As was explained during Committee, it is right that an assessment should be made of the entire system of rules governing third-party campaign expenditure. That assessment should of course extend to the changes made by the Bill. The entire range of existing and newly introduced rules should be carefully reviewed after their first operation, which is expected to be at the 2015 UK parliamentary general election. A commitment was given by my noble and learned friend that an amendment would therefore be brought forward at Report to require a review of the operation of Part 6 of PPERA as it is amended by Part 2 of this Bill. That is indeed what the Government have now done. The next scheduled general election presents the first opportunity at which all the third-party campaigning rules will be in operation, and it is a timely opportunity to review the effectiveness of those rules.
The Minister must appoint a person within 12 months of Royal Assent to allow the reviewer to start work during the general election campaign. The Government believe that it is particularly important that a reviewer should be appointed sufficiently ahead of the general election to allow him or her to fully assess the operation of the rules. The amendment requires that on completion, the person carrying out the review must produce a written report. That report must then be laid before Parliament by the Minister. I am sure that noble Lords will agree that it is only right that Parliament should have the opportunity to consider how to respond to the findings in the report. Noble Lords will also have noted that in its most recent parliamentary briefing, the Electoral Commission gave its support to the amendment.
Government Amendment 135 is a related but minor amendment, which clarifies that government Amendment 118 extends to the United Kingdom only. I beg to move.
I congratulate the Government on having brought this forward. It is really important, because so much of what we have been discussing is supposition. We are peering into the fog of the future concerning how things will work out. This will be a chance to see what the reality is. I have just one question. The amendment talks about the person—the lucky person—who will presumably be imposed for about a year, if they start in March 2015. There will be the aftermath of the general election, and the returns required after that will be six to nine months later, so they will have to be in post for a year.
The amendment refers to remuneration and expenses. One issue when people undertake such reviews is access to skilled manpower and a team who can help them. No matter what he or she is paid, if they are trying to do it on their own, they will undoubtedly be in a much weakened position. I assume, but I want to have it confirmed, that the amendment implies that adequate manpower resources will be available to the reviewer to ensure that he or she can carry out their work and appropriate investigations. I think it is an excellent proposal.
My reason for having supported the noble Lord in Committee and again tonight is that if, like me, noble Lords participate in the Lord Speaker’s outreach programme, they will know that when you go to schools up and down the country the issue that comes up again and again and again is that of money. We have a generation of schoolchildren about to go to university who have grown up with the idea that this is a dishonourable place where rich men and influential groups have a power because of their ability to fund.
The noble Lord, Lord Campbell-Savours, has put forward some incremental steps, which I support. I can only believe that the Front Benches cannot support them because they believe somehow, or they fear, that the comparative advantage, or competitive advantage, will be lost forever. They cannot think what it is, but something might come out of the woodwork that leaves one party at a disadvantage forever.
Sometimes, somewhere, we have to be brave, because against the £2 million to £3 million that the noble Lord, Lord Campbell-Savours, has said that it was going to cost, is the drip, drip, drip of damaging information about the behaviour and performance of this Parliament. That cannot be right for our country, whatever your political beliefs. Someone, sometime, somewhere has to be brave, and we need to give them a nod tonight to get on and be brave as soon as possible.
My Lords, I rise very briefly to support the amendment in the name of my noble friend Lord Campbell-Savours. It takes me back 40 years to the Houghton committee on state aid for political parties. Both political parties ran away from the idea at the time—and there were only two major parties at that time, it has to be said. The campaign itself for the Houghton committee was under the slogan of “A penny from the workers to support our politics”. It was said that we had our politics on the cheap. The amount of money that is now required to mount a political campaign or to support a political party in a constituency is eye-watering compared with what was considered to be normal in 1974. Now, we are all more and more dependent on very large donations from a very small pool of people. Whether or not those people seek personal advantage from it, the public think that that is what will happen.
The noble Lord, Lord Hodgson, is entirely right about the attitude of young people towards politics. We find a great deal of apathy and disgust, as well as a decline in participation in politics and certainly a decline in turnout in local and general elections. It is never the right time to introduce a measure such as this. I have been active as an organiser and a parliamentarian for well over 40 years and I have never, ever heard anybody from a Front Bench say, “Perhaps this is the time”; it is always, “Well, this is a really good idea, but not yet”.
The person whom I think of as my noble friend, the noble Lord, Lord Elystan-Morgan, has just referred to President Obama. He was wise enough and smart enough to see that this issue was poisoning politics in the United States. What did he do? He had a deliberate strategy of asking for $20 from millions of people. Can any of us remember—I certainly can—what Washington looked like on the day of his inauguration? Washington had never seen so many people turning up for an inauguration, and I do not think that that was an accident.
My Lords, after the fireworks, we return to the meat and potatoes. This amendment returns us to an issue we discussed in Committee: how to ensure that the work of the two relevant regulators—the Electoral Commission and the Charity Commission—is truly joined up.
As I explained in Committee, both commissions have produced guidance. Both sets are clearly written and well signposted but they are not yet joined up. As I also explained, CC9—the Charity Commission guidance—is 35 pages long. There is a section titled “Campaigning: getting it right”, in which the Electoral Commission’s role and purpose are not mentioned at all, although the Advertising Standards Authority is. Meanwhile, in the Electoral Commission’s guidance, no reference is made to charity law; it confines itself to the two tests of the purpose test and the publicity test.
Of course, as both commissions have pointed out to me—and, indeed, in guidance to Members of your Lordships’ House—both have their individual, separate procedures for updating their guidance from time to time as the months go by. Therefore, any and all joining up has to be done by the individual charity and this is quite a challenge for a charity, especially smaller ones with limited financial and operational resources. Indeed, there must be, as some noble Lords have said, a real danger that many smaller charities will merely throw up their hands in horror and give up.
I explained to my noble and learned friend that without some ministerial pressure I was convinced that the two organisations would likely continue to plough their own individual furrows. My noble and learned friend gave the Committee some pretty honeyed words, I thought, when he said:
“I have no doubt that today’s debate, and the amendments tabled by the noble and learned Lord, Lord Hardie, and by my noble friend will have reinforced that message … I hope that the fact that the Electoral Commission and the Charity Commission have indicated an awareness of the need for clear and comprehensive guidance is of some reassurance to the Committee. However, the Government are also keen to reassure campaigners and charities that the provisions of the Bill and the PPERA rules will, and should, be clearly communicated to them. It is our view that the Electoral Commission should produce guidance in consultation with the Charity Commission, and provide specific consideration of charities”.—[Official Report, 18/12/13; cols. 1348-9.]
However, he could not quite bring himself to commit specifically to joining up the two sets of guidance. I have retabled this amendment tonight because I remain convinced that without this statutory pressure the two regulatory silos will remain intact.
The two commissions were very kind and courteous and they agreed to meet to discuss how to address this issue. Following that meeting, I have retabled my Committee stage amendments, but I have made two significant wording changes. I have replaced the phrase that I originally used, “joint guidance”, with the phrase, “co-ordinated guidance” and replaced “Commission” with “Commissions”. It was explained to me, of course, that the Charity Commission does not regulate charities in Scotland and Northern Ireland. OSCR, the Office of the Scottish Charity Regulator, and a new body recently set up in Northern Ireland will do that. By contrast, of course, the Electoral Commission regulates the whole of the United Kingdom.
So the vision I have and the vision I shared with them of co-ordinated guidance, which we discussed and they felt was a possibility, was for a homepage, prepared and signed up by the commissions, with links to policy issues or subjects that might be of more specific and important concern. This will offer two great advantages. The first is simplicity. Any charity of any size has just one place to go to look for guidance on this quite complex topic. We know it is complex because of the discussions we have been having over these past few hours. The second advantage is consistency. No regulator can introduce new policies or approaches without the other regulatory bodies knowing about it and being able to have their own specialist input. This avoids charities being caught in the crossfire of the regulators acting independently and quickly—maybe too hastily—in the heat of an election campaign.
To conclude, this amendment has, at least in principle, the support of the Electoral Commission and the Charity Commission. It certainly has the support of the NCVO and the commission of the noble and right reverend Lord, Lord Harries. I believe that it will be warmly welcomed by the sector as it grapples with the undoubted challenges of the Bill, so I hope that on this occasion my noble and learned friend can go further than honeyed words and accept this amendment. I beg to move.
My Lords, the noble Lord, Lord Hodgson, certainly raises a very important point, which I am glad we are discussing, even though it is rather a late hour to do so. We should have some reassurance from the horse’s mouth: he mentioned that the Government have made various points, he has made various points and he has talked to the Charity Commission—presumably the Charity Commission for England and Wales—and the Electoral Commission. However, I remind the House and read into the record that our briefing from the Electoral Commission says specifically, under the heading, “A joint introductory guide for charities”:
“We are committed to working with the UK’s three charity regulators”—
that is, the one for England and Wales, the one for Scotland and the one for Northern Ireland—
“to ensure that charities have clear and reliable guidance about how to comply with the rules. The Electoral Commission and Charity Commission for England and Wales will produce a joint introductory guide for charities that need to understand if their activities are covered by non-party campaigning rules”.
It goes on to make various sensible points about testing its guidance, about taking campaigners’ views into account and about supporting and advising campaigners. That is all part of a process of being available in a sensible and practical way to charities and to campaigners who are not charities—which is equally important.
Given that the Electoral Commission and the Charity Commission are, I believe, working along the same lines and intend to produce joint guidance for charities and non-charity campaigners, and given the clear commitments being made, I think that it would be unnecessary to put this provision in the Bill. Neither the Charity Commission nor the Electoral Commission has the slightest doubt that it has to produce something sensible in this area. As a result of the amendments that have now been made by my noble and learned friend, there is time to do that before September, before the new arrangements kick in. While I support the spirit of my noble friend’s amendment, I think that it is unnecessary in the light of the clear commitments which have been made.
My Lords, my noble friend Lord Hodgson tabled a similar amendment in Committee and brings forward this amendment to require the Electoral Commission to produce guidance for third parties and for that guidance to be co-ordinated with the Charity Commission, particularly to consider the impact of Part 2. As has been said, the issue was discussed at length in Committee, and it is clear to the Government that there is a lack of understanding among third parties and charities as to exactly what are their responsibilities under existing PPERA provisions—the point made by my noble friend Lord Tyler. That the Bill amends those provisions reinforces the need for clarity. The Government made clear in Committee that the issue of guidance and whether a duty should be imposed on the Electoral Commission would be revisited at Report.
Those are not just honeyed words, because since our debates in Committee, the Government have discussed with the Electoral Commission the importance of its producing clear guidance. It is essential that such guidance take into account the impact on charities in particular. Although charities do not campaign in support of political parties at elections and only two have ever registered as third parties to date, there is still an obvious need to ensure that they fully understand the workings of the new regime—that has been made very apparent during our many debates today—and whether they might be held to account by the new provisions as a result of their activities.
As the independent regulator, it is of course for the commission to provide this guidance, but the Government agree that the views of the charities regulator, the Charity Commission, must also be taken into account. Indeed, this involves not just the Charity Commission but its equivalent in Scotland, OSCR, and the Charity Commission for Northern Ireland. Suitable guidance, particularly aimed at charities, can come only if it is jointly produced.
I am pleased to note what the Electoral Commission stated in its briefing to Parliament. If your Lordships will allow me, I shall repeat the words already cited by my noble friend Lord Horam, because they are important. That is why this is substance, not just words. The commission’s precise words are:
“We are committed to working with the UK’s three charity regulators to ensure that charities have clear and reliable guidance about how to comply with the rules. The Electoral Commission and Charity Commission for England and Wales will produce a joint introductory guide for charities that need to understand if their activities are covered by non-party campaigning rules ... Our guidance will explain key areas of the rules such as deciding what counts as regulated spending, how to manage regulated spending, and how the rules cover co-ordinated campaigning in coalitions”.
The Government welcome that clear commitment. At the big risk of quoting again from the e-mail from the Charity Commission, sent at 18.08 yesterday evening, in that e-mail, under the heading, “Co-ordinated guidance for charities that need to understand if they are covered by the rules”, Mr Rowley states:
“The Charity Commission and the Electoral Commission have committed to producing co-ordinated guidance along with a joint introductory guide for charities ahead of the regulated period for the 2015 General Election should charities not be exempted. We are sensitive to the particular help that some charities may need to comply with both electoral and charity law. In the past we have worked closely with the Electoral Commission to ensure their advice for charities on complying with electoral law and our guidance on charities and political campaigning in an election period is aligned and have continued to work closely together throughout the passage of this Bill”.
The Government will continue in our discussions with the Electoral Commission. We will follow them up, and I am sure that our brief debate this evening will have further reinforced to the Electoral Commission the need for it to provide clarity to campaigners. It is the Government’s view that the Electoral Commission must produce guidance in consultation or co-ordination with the Charity Commission and the other charity regulators in the United Kingdom, particularly with regard to how charities might be required to comply with the regime.
I can see why noble Lords say that there is nothing to be lost by having the provision in the Bill, but when a clear and unequivocal commitment has been made by the Electoral Commission, and by the Charity Commission in the quote I have just read, as my noble friend Lord Horam said, it is unnecessary to put this in the Bill. In the light of these commitments, which I think go further than honeyed words, I ask my noble friend to withdraw his amendment.
My Lords, as it is 10.05 pm I shall be brief. I am very grateful to all those who have spoken in support of this amendment—the noble and right reverend Lord, Lord Harries, my noble friends Lord Cormack, Lord Horam and Lord Tyler, and the noble Baroness, Lady Hayter of Kentish Town.
I tabled the amendment with the Hippocratic oath in mind—first, do no harm. I could not see that this could do any harm. It could only do good, because it is either superfluous—in which case, it does not matter—or, if things started slipping, it could be brought into play. Therefore, I cannot say that I am pleased with the outcome. The “too difficult” tray, in which I always thought this would end up, probably has been pushed a bit further round the desk by the words that we managed to extricate from the two commissions. However, it is late. I hope that my noble and learned friend will continue to look at this.
Another amendment that I was keen on, which the Government have accepted—namely, the review—will be an issue for the reviewer to look at. I think that there will be issues, unless we really join this up tight; charities will find things complex and difficult. However, given that it is 10.05 pm, I beg leave to withdraw the amendment.
(10 years, 8 months ago)
Lords ChamberMy Lords, the noble and learned Lord, Lord Hardie, and my noble friend Lord Tyler have fought this issue pretty well. I will make a short contribution to the debate on this important topic. Amendments 167 and 168 accept that there need to be limits, but seek to change as little as possible. As was pointed out by the noble and learned Lord, Lord Hardie, the reason for this is that there is not evidence that the limits so far have caused great difficulties or given rise to many problems. The amendments therefore seek not to reduce the amounts from £10,000 to £5,000 and from £5,000 to £2,000, but merely to restore the purchasing power of those figures. I must say to my noble and learned friend on the Front Bench that I think £2,000 for a single constituency is a very low sum indeed. Hiring a hall and some audio equipment would make a very sizeable dent in that sum.
The Bank of England’s inflation indicator, a wonderful thing to play with of an afternoon, enables you to check purchasing power on any day from 1750 to 2012. The purchasing power of £1 in 1750 is equivalent to £187.76 in 2012, just as an aside. The relevant figures are from 2000 to 2012. The purchasing power of £1 in 2000 was equivalent to £1.42 in 2012. In other words, inflation has averaged 2.9% per annum, and therefore the purchasing power of £1 is now only 70p. On that basis, applying that across the piece, you come out with a figure of £14,200 from £10,000, or £7,100 from £5,000. I have merely rounded it to the nearest £1,000.
The reason for my contribution to this debate is that I think we want as few changes as possible. This matter was debated at great length during the PPERA proceedings, and all we seek to do is restore the status quo ante in terms of purchasing power. I hope that the Government will look with favour on this contribution to the debate on an important topic.
My Lords, I shall speak to Amendments 167A and 167B. The Government have indicated quite clearly that they will raise the registration threshold, so the question at issue is what the sum should be. We have had various alternatives put before us already today. The recommendation of the commission that I have the privilege of chairing is £20,000 for England and £10,000 for the other three nations.
The noble and learned Lord, Lord Hardie, reminded us of the Neill committee’s recommendation in 1998 that the limit should be £25,000 and that that should be the figure also for Scotland, Northern Ireland and Wales. He posed a very sharp question: why should the registration thresholds be lower for those nations? Although our commission eventually plumped for the figure of £10,000 for those three nations, we were very tempted to put it higher, particularly because of all the difficulties in Northern Ireland, the key role that charities are playing there and their great desire not to be identified with any particular political party at this time of emergence from conflict to democracy. There is therefore a very strong case for Northern Ireland’s registration threshold to be higher.
The reasons for the raising the thresholds are obvious. The Electoral Commission says that they should be raised to at least the present PPERA levels. The argument for raising them higher than that is, first, the increased range of activities—even if you take out staff time, as we hope the Government will, there is still an increased range of activities which will cost more money. The second is inflation. Perhaps most important of all is the stated aim of the Government to give smaller charities in particular more freedom of manoeuvre without the fear that they might overstep the line.
In our report, we summed up what all smaller charities were saying. They had said that,
“they limited or stopped altogether some campaigning activity in order to ensure they did not get close to the registration threshold. For many organisations, the perceived issue of reputational risk associated with registering as a third party was important in addition to the administrative burden. The reputational risk was a particular concern to some NGOs”.
This was the case with Oxfam. Evidence gathered for the report stated that:
“Oxfam deliberately chose to ensure their spending was capped under £10,000 so they didn’t have to register, because for charities, they see it as a real brand reputational risk, they have to register as a third party because we are meant to be really apolitical NGOs. But yes they do have large budgets but have chosen not to spend them on election campaigns”.
That question of reputational risk for charities in particular is an important consideration.
So much of this legislation, and the lowering of the thresholds in particular that we are talking about now, represents an attempt to escape the influence of the super-PACs in this country. It is as though a huge net has been thrown in order to catch some great fish which might swim across the Atlantic, but the only effect of which is to trap smaller fish quite legitimately swimming freely in the waters of democracy. I hope that the Government will raise the threshold very high indeed in order that their stated aim might be achieved; that is, that smaller charities can get on with their legitimate business of campaigning on policies without fear of being caught.
On Monday, the noble Lord, Lord Gardiner, referred to his 15 years working with the Countryside Alliance. He said that,
“we were punctilious about not promoting or procuring the electoral advantage of a party or candidate”.
I am sure that they were. He continued:
“We were punctilious about these matters”.—[Official Report, 16/12/13; col. 1097.]
In fact, we understand that the Countryside Alliance had specific legal advice that its activities would be subject to PPERA regulations if it spent enough on materials to breach the registration threshold. It did not register, but that is only because it did not spend enough on printed materials. As the case study in the second commission report shows, it would clearly have needed to register under the Bill because of the new activities subject to registration. Its activities were not just to become transparent through regulation but would have been restricted because of the lower spending cap and the very low constituency limits.
In our report we set out the particular case of the Countryside Alliance and the difficulties that it would find itself in as a result of the Bill, and I wonder whether the Minister was aware of that legal advice at the time. The Government have given lots of reassurances to charities that they are not in the business of promoting or procuring the electoral advantages of a particular party, but that reassurance does not work because the sting is in not that sentence but the qualifications. A charity campaigning on policy can suddenly find that inadvertently, even if it has not mentioned a political party, and even if its primary purpose is something else altogether, it is coming up to the line where it might be caught by this regulation. It is this in particular that the commission wishes to draw to the attention of the Minister as we debate this amendment on thresholds; they need to be as high as possible in order to allow the maximum freedom that should properly be allowed in a democratic society.
(10 years, 8 months ago)
Lords ChamberMy Lords, there is little wonder that there is so much concern in the charitable and voluntary sectors about the idea of collaborative working being detrimentally affected by the Bill. That is because collaborative working coalitions are the most effective way of campaigning and bringing about policy change. They bring together large and small organisations, single-issue and multiple-issue organisations, service providers and self-help organisations, and charities and other types of organisation. As well as enabling a powerful voice, collaborative working moderates the kinds of demand that are made and makes them more realistic. You have to achieve some kind of consensus, if, for example, you are putting together a manifesto, as many coalitions do in the run-up to an election. This may mean moderating the demands of the more extreme and pushing along the demands of the more cautious. These coalitions are very effective and this is why it is important that we get this right. This issue requires much more detailed consideration. In the mean time, the amendment proposed by the noble and right reverend Lord, Lord Harries, gets us some way along that road. I very much support it.
My Lords, I should like to emphasise the challenge posed to coalition working by the present PPERA rules. I have an amendment in a later group about the practical reporting requirements that flow from it.
My noble friend Lord Tyler laid out the challenges, but the noble and right reverend Lord, Lord Harries of Pentregarth, put his finger on the issue. Our big challenge is to come up with the answer. Charities, particularly smaller ones, will always work in coalitions and therefore we must find a way to facilitate that, for the reasons given by several previous speakers. The noble Baroness, Lady Tyler of Enfield, explained this clearly from her personal experience. I can see that we are not there yet, but I hope that the round-table conference taking place early in January, to which the noble and right reverend Lord, Lord Harries, referred, will produce something that will address the weaknesses of the present system. I also hope that my noble and learned friend on the Front Bench will be able to approach that with an open mind so that we can tease out the right solution to this undoubtedly difficult but fundamental challenge.
My Lords, I have already expressed my concerns about the smaller charities and the noble Lord, Lord Tyler, has articulated this so much better than me. I think that the Minister has been waiting for this amendment to reply to me and to others.
I back up what my noble and right reverend friend Lord Harries has said about encouraging charities to work together. Let us look at the example of slavery, which is in the minds of the Conservatives at the moment. We are rather surprised about that because that campaign comes from the voluntary sector and the Liberal party and not the Conservatives. Why is that? It is because the ecumenical coalition against trafficking and Anti-Slavery International came up with legislation. They have been working on this subject for 20 years, not five or 10 years, and the Prime Minister has embraced it at the forefront of present legislation. I am delighted about that but the Government have a lot of difficulty in the voluntary sector at the moment. If they are proceeding along these lines, they are going to have to think of something else soon.
My Lords, it is a pleasure to follow the noble and learned Lord, Lord Hardie. Amendment 175 picks up the early part of Amendment 170J and seeks, as a probing amendment, to require the production of joint guidance between the Electoral Commission and the Charity Commission. During all the debates on Part 2 of the Bill, the underlying theme has been the practical implications for individual charities, especially smaller ones, many of which—as has been pointed out on several occasions—were not yet aware of their responsibilities. As the noble Lord, Lord Phillips, pointed out on Monday, the overwhelming proportion are run by people of the utmost integrity. The challenge is how to do this so they can discharge their responsibilities at minimum commensurate cost and disruption.
As we have discussed, there is guidance. The oft referred to CC9 from the Charity Commission is 35 pages long but is commendably clearly written and laid out. There are two parts to the Electoral Commission’s guidance: one is entitled Overview of non-party campaign material and the other is on non-party campaigners. That runs to another 15 or 20 pages, so we are talking about something north of 50 pages in total. That is what it looks like for a small charity. I suspect my noble friend Lord Tyler would call it a very good aid to sleeping.
These are two separate sets of guidance which are not easy to integrate. For example, in section G of CC9, entitled, “Campaigning: getting it right”, it says:
“This section is aimed at charities that have already decided to campaign or work in the political arena. There are a range of detailed questions and issues that may arise, along with the need to comply with charity law, and other laws and regulations.”
Strangely, the Electoral Commission is not mentioned at all in the text that follows. What is mentioned is the Advertising Standards Authority, a body which has not hitherto featured large in our discussions. In the Electoral Commission guidance on non-party campaign material, the focus is on two tests: the purpose test and the publicity test. These form no part at all of the CC9 guidance and the overall impression is of two ships passing in the night. This will pose considerable challenges, especially to smaller charities, so the amendment is intended to require—force is perhaps an unattractive word—the Electoral Commission and the Charity Commission to produce an integrated set of guidance laying out how to comply with the new Act.
This is a challenge but not an insuperable one. It will, of course, be opposed by both commissions. Members of your Lordships’ House will already have had an opening salvo from the Electoral Commission:
“We think that a legal requirement for us and the charity regulators to produce joint documents is unnecessary and likely to be inflexible. It may also be counterproductive because it could hinder our ability to respond quickly to the needs of charities whose activities fall within our regulatory remit, especially as new questions will arise during the regulated period.”
I do not find these arguments persuasive at all. I see nothing in them that will be made more difficult by requiring a joint approach. Indeed, if the Electoral Commission is proposing to introduce new guidance during an election campaign without the agreement of or consultation with the Charity Commission, this has the potential to put charities in an extremely difficult position.
I do not underestimate the challenge this will pose to my noble and learned friend on the Front Bench. I have been trying for some three years to encourage greater co-operation between Companies House and the Charity Commission to save 30,000 charitable companies making two returns where one could and should suffice. That has never seemed an insuperable objective but progress to date has been glacial. The same applies to collaboration between HMRC and the Charity Commission. However, that issue of collaboration between the Charity Commission and the Electoral Commission is altogether more pressing because of the short timescales and the imperatives created by a general election campaign.
If the requirement to produce joint guidance is not made a statutory one, I confidently forecast that none will be produced. The two commissions will keep to their own separate turfs, and the affected charities will be left in no man’s land in the middle. I therefore hope that my noble friend will appreciate the importance of tackling this matter.
My Lords, I am grateful to the noble and learned Lord, Lord Hardie, for his amendments and I welcome the amendment tabled by the noble Lord, Lord Hodgson, who just pointed out the ghastly complexity and challenges that will be faced by charities as a result of the Bill. It is eminently sensible to have an integrated set of guidance, and I very much hope that the Minister will accept this amendment so that it will be clear that this House and the Government want there to be a requirement for an integrated set of guidance.
On Monday the Government made a great deal of how the guidance that would be issued after the Bill becomes law would clear up many of the apparent difficulties contained within it. The Minister—I do not know if it was the noble and learned Lord—said:
“The Government believe that it is essential that campaigners have clarity on how they are to comply with the third-party regulatory regime. The Electoral Commission has a power to produce guidance for third parties campaigning in elections, and indeed has exercised that power in previous elections”.—[Official Report, 16/12/13; col. 1040.]
Indeed, the Minister placed such a heavy emphasis on the guidance that would be given that the noble and right reverend Lord, Lord Harries of Pentregarth, was moved to say while speaking to his amendments:
“However, perhaps I may anticipate, rather too boldly, the response that the Government are likely to make: that these kinds of issues can be dealt with in guidance”.—[Official Report, 16/12/13; col. 1057.]
Charities and NGOs need to understand how the Bill will affect them as the Bill passes through the House. To place the amount of weight that the Government place on guidance is effectively another way of avoiding proper consultation.
The first amendment from the noble and learned Lord, Lord Hardie, would ensure that the Electoral Commission is able to give charities and NGOs guidance in good time before they are subject to the regulated period, and would reduce the spending limits in line with the reduced regulated period that would result. The second would ensure that the Electoral Commission is resourced to apply these changes. As the Electoral Commission has said itself,
“The current PPERA rules on non-party campaigning are relatively narrow in scope … and the definition of what is covered is relatively clear, so we are able to produce guidance that builds on the legislation”.
However, it goes on to say with regards to the Bill before us:
“This will be particularly challenging for campaigners because of the need to apply the definition of ‘election purposes’, which is new and untested in the context of non-party campaigning. In the limited time available we will aim to produce guidance to assist with this, and will offer advice on particular queries where possible, but our experience strongly suggests that it will not be straightforward to apply the new rules to many specific types of activities”.
I know that the Electoral Commission will do all in its power to produce the guidance, but it will need time because of the complexities.
I say to the Minister that of course the best way of ensuring that the Electoral Commission is able to issue clear guidance in time is to draft clear law—to draft a very clear Bill. These sensible amendments would therefore assist in that. However, notwithstanding the desired clarity, this is a complex Bill, and time will be needed to ensure the best possible guidance so that the voluntary and charitable sectors understand their new obligations and do not unintentionally fall foul of the law. Like the noble and learned Lord, Lord Hardie, I think that small charities and voluntary organisations that do not employ lawyers as a matter of course could well find themselves unintentionally in breach of the law. As in so many things we do in this House, the lawyers will gain the most, and we cannot allow that to happen. I therefore very much hope that the Minister will signal that the Government will accept these or similar amendments in due course.
My Lords, Amendment 170J, tabled by the noble and learned Lord, Lord Hardie, would require the Electoral Commission to produce guidance for third parties, so that they are clear what actions they must take to comply with the provisions of the Bill. The Bill, should it have received Royal Assent by the time that guidance is produced, would not be permitted to take effect for a further three months. The noble and learned Lord further proposes that the Electoral Commission be given the extra resources it might need to produce this guidance and to comply with its other obligations under this Bill.
My noble friend Lord Hodgson has tabled Amendment 175, which, similarly, would require the Electoral Commission to produce guidance, but jointly with the Charity Commission. This would be designed to address specifically the impact upon charities.
The debate surrounding this Bill has made clear just what a lack of awareness there was, not only among third parties but among the public at large, of the existing provisions of the Political Parties, Elections and Referendums Act 2000—PPERA. I have certainly heard from more than one of the organisations that I have spoken to that they had not been aware that they might just have been edging towards a registration threshold back in 2010. They had not appreciated that fact. This lack of awareness has highlighted the crucial importance of comprehensive and clear guidance for all third parties, not just charities, so that they understand whether they could be affected by the provisions of this Bill as it amends PPERA.
As I said in at least one of the debates on Monday, when the original Committee on Standards in Public Life was considering the architecture and proposing the idea of an Electoral Commission it accepted that in some ways we could never achieve an absolute definition, and that, as the noble and learned Lord, Lord Hardie, predicted, some cases may have to go to the courts. However, much of that uncertainty could be avoided through guidance. That was one of the functions and roles that the Committee on Standards in Public Life saw for the Electoral Commission that it proposed should be set up.
The Electoral Commission already has the power, under PPERA, to produce guidance for third parties. As I said on Monday,
“The Electoral Commission has a power to produce guidance for third parties campaigning in elections, and indeed has exercised that power in previous elections. Campaigners require clear guidance to support them and help them understand the revised regime, and I am reassured that the commission recognises this too”.—[Official Report, 16/12/13; col. 1040.]
I think that I went on to say that the sooner the guidance can be produced in draft, the better.
Although there is existing guidance on third parties and the PPERA rules, noble Lords will be aware that the commission has already indicated that it will indeed produce fresh and enhanced guidance in time for the 2015 UK general election. It did so in its briefing to members in the other place, as recently as 29 August. Both the Electoral Commission and the Charity Commission will be aware of the demand from campaigners for clear and detailed guidance of this sort. I have no doubt that today’s debate, and the amendments tabled by the noble and learned Lord, Lord Hardie, and by my noble friend will have reinforced that message.
As in previous elections, the Electoral Commission and the Charity Commission will work closely together to develop guidance that will assist campaigners and charities to have a clear understanding of how the provisions in Part 2 relate to them. Again, the Electoral Commission made this clear in its briefing of 4 November. The Government stand ready to support this work.
I hope that the fact that the Electoral Commission and the Charity Commission have indicated an awareness of the need for clear and comprehensive guidance is of some reassurance to the Committee. However, the Government are also keen to reassure campaigners and charities that the provisions of the Bill and the PPERA rules will, and should, be clearly communicated to them. It is our view that the Electoral Commission should produce guidance in consultation with the Charity Commission, and provide specific consideration of charities. I am not sure whether a particular statutory provision is needed, but the benefit of that is very evident.
The other point made by the noble and learned Lord, Lord Hardie, in his amendment, which was also spoken to and supported by the noble Baroness, Lady Royall, was about the funding of the Electoral Commission. It is important to be aware—
Before my noble and learned friend moves on, may I ask him a question? When he was speaking so encouragingly about the joint guidance, I was not quite clear whether, in his mind’s eye—I know that he will not wish to commit himself yet—this will be one document produced by the two commissions? I ask this because once the two bodies are able to produce two documents they will do just that and leave the charities to connect them. They should be doing the connecting. They are the regulators, and they really need to do that. Is that how my noble and learned friend sees it?
I am not sure that that is entirely how I see it; my point was that whatever is produced should be produced in collaboration. I certainly am wary of saying anything that might be seen as a direction to two independent bodies, which must act independently of Government. That is why I hesitate, as I am sure my noble friend will understand. Ministerial colleagues have had meetings with the Electoral Commission—I have not done so personally—and, I think I am right in saying, with the Charity Commission, and I am sure that the message conveyed by noble Lords here will also be conveyed by Ministers.
My Lords, this amendment is about reporting requirements, and I shall speak also about the two clauses included in the grouping. I think that the Government are sympathetic to the idea that the regulatory burden, particularly on charities, should be reduced if at all possible. The Electoral Commission has noted that the current provision in the Bill appears to be onerous as far as reporting procedures are concerned. At the moment, charities and campaigning groups have to report every month, and every week during the post-Dissolution period. Amendment 170N provides that those organisations which register because they think that they will be above the registration threshold, but do not in fact go above it, will simply have to report that they have not spent above the limit. They would not have to submit detailed accounts, they would just note the fact that they had not spent above the limit. It is a simple way in which the regulatory burden on them could be lessened.
I have called for a debate on whether Clauses 32 and 33 should stand part of the Bill because we need to go way beyond that. Surely it must be possible for smaller organisations in particular, but even slightly larger ones, to make a single report of expenditure after the election period rather than having to submit monthly reports and, in the post-Dissolution period, weekly reports. I hope that the Government will be sympathetic to doing all they can to minimise the regulatory burden, particularly on charities. I beg to move.
My Lords, I have tabled a couple of amendments in this group. They follow the line of attack of the noble and right reverend Lord, Lord Harries of Pentregarth, and they deal with reporting requirements. They are quite simple and entirely deregulatory. As regards Amendment 173, if at present a body makes a donation which has to be reported under PPERA rules as part of the quarterly reporting procedure, that triggers a requirement to make returns in subsequent quarters even though the body may not have made any further donations; that is, the body has to make a nil return.
This situation becomes rather more pressing during an election campaign, where a single report of a donation may require a series of weekly nil returns during the rest of that campaign. That arrangement will apply to all charities and all non-party campaigners under the new regime. I have argued quite strongly that nil returns are superfluous—indeed, they may be worse than superfluous, in that a blizzard of nil returns may distract the Electoral Commission from its regulatory role. Amendment 178 seeks to achieve a position where, if a reportable donation is made, it must be reported, but if no further donations are made, then no further reports are required—we dispense with the requirements to make nil returns.
Amendment 174 takes us back to the challenge from a couple of groups ago about the reporting of coalition working, where groups and charities collaborate to work on a particular issue. I referred a moment or two ago to the quarterly and then weekly reporting requirements. Extraordinary though it may seem, as we heard in the earlier debate, every member of a coalition has to report the record of all the members, even of expenditure for which they have no responsibility. That of course is immensely time-consuming and duplicative.
I will give the Committee a quick example. A group of charities may wish to raise the issue, say, of the export of live animals. They establish an agreement and a budget of £200,000. One large charity puts up £150,000 and five smaller charities put up £10,000 each—all are therefore above the reporting requirement. The consequence is quarterly reporting, and weekly reporting during the general election, for all six organisations, which have to make the return to the Electoral Commission. This surely cannot be a sensible use of resources for any of the parties involved, not least the Electoral Commission itself.
Amendment 174 would permit a coalition of charities to nominate a lead charity, which will make the return on behalf of the group. My noble and learned friend may fear a loophole being created. Indeed, in his remarks when we were discussing coalition working an hour ago, he hinted at this particular concern and fear. However, I am not sure that he needs to be concerned, because the lead charity will have to take the responsibility —and all that implies under electoral law—for all the activities of all the members of the syndicate. It is unlikely to take on the leadership role unless it is satisfied that its fellow coalition members will behave properly and legally. Amendments 173 and 174 are supported by the NCVO and have the support, in principle, of the Electoral Commission. They are of course also in tune with the Government’s general deregulatory approach and policy. I hope the Government will study the amendments, which are in a purely probing form at the moment, and perhaps come back with some reaction on Report.
My Lords, I shall speak also to Amendment 172. It is with some relief that I reassure the Committee that this is not, for the moment, about charities. It is about the position of royal chartered bodies. At present, royal chartered bodies cannot register with the Electoral Commission, but nor are they charities. They are floating in the electoral ether, so to speak. These amendments attempt to regularise their position.
Amendment 171 amends Section 88 of PPERA, which is concerned with recognised third parties, by adding royal chartered bodies to the list in subsection (2) of those who may make returns to the Electoral Commission. Amendment 172, which is consequential, adds the officers of the relevant chartered body to the list of relevant participators at the end of Clause 31(3). I have tabled these amendments on behalf of the Law Society. Sections 94(3) and 94(4) of PPERA set out that where a third party is not a recognised third party and exceeds the limit of expenditure, which under the Bill will be £5,000, it will be guilty of an offence if it knew or ought reasonably to have known that the expenditure would be incurred in excess of that limit.
The fact that the Law Society cannot register as a third party, together with the Electoral Commission’s clear guidance that campaigning on policy issues could be deemed to be controlled expenditure, leave the society vulnerable to possible criminal sanctions for any campaigning it does on issues which arguably have a political dimension. Without the ability to register, the Law Society may have to cease such activity to avoid such sanctions.
There is inevitably a human rights argument that the position of chartered corporations breaches Article 10 of the ECHR, which is on freedom of expression, combined with Article 14, which covers discrimination. As these bodies do not have the options available to other bodies to come under the Act’s system of proportionate control subject to transparency, their freedom of expression is stifled. This is nothing to do with party political activity. Chartered corporations such as charities must not be party political. The exclusion of chartered corporations from being donors in Part 4 of PPERA is right, and is not touched by the amendment.
Until now, the Law Society has been able to live with the low level of uncertainty as to its precise legal position. Two developments have altered this. The first is the provisions and implications of the Bill we are discussing today. The Electoral Commission noted in its briefing of 22 October 2013 that:
“The combination of lower registration thresholds and spending limits, new constituency limits, and the wider scope of regulated activity, is likely to create a much higher level of allegations of breaches of the rules by non-party campaigners than at previous elections”.
Further, the detailed guidance on the width of controlled expenditure given by the Electoral Commission at a 22 October briefing is new. Whether it is right or wrong, it represents the regulatory enforcement approach it proposes to take. The second issue is developments in public policy—for example, the already referred to European Convention on Human Rights—which have an increasingly political dimension. They bring organisations such as the Law Society, which represents a substantial body of membership, increasingly close to the complex line between policy research and campaigning.
The Electoral Commission is sympathetic to this. Its briefing states:
“We support the principle of this amendment and agree that this is an issue that should be considered and note that any organisation that does not fall within one of the categories listed in PPERA as having appropriate links to the UK will not be able to register. This effectively means that their spending on matters covered by this Bill is capped at the registration threshold”.
It goes on to make a further point, which I had not focused on and which is an issue the Government will have to consider:
“There are other organisations that are currently ineligible to register, including Charitable Incorporated Organisations (CIOs)”.
Of course, that came into force only in the past 18 months and was not in existence in a corporate form at the time when PPERA was passed. It will be an increasingly important corporate form, because of course it offers the trustees of charitable trusts limited liability. We will therefore need to address this issue at some point during the passage of the Bill, but I had not come across it until this moment.
I have tabled these amendments on behalf of the Law Society, but it will not just be the Law Society that is affected. Other relevant bodies which may or may not be aware of the fate that awaits them include the Chartered Institute of Taxation, the Institution of Civil Engineers, the Institute of Chartered Accountants in England and Wales and the Royal College of Surgeons. The full list of royal chartered bodies contains no fewer than 1,002 corporate bodies—whose names I shall not read out—but it may interest the Committee to know that the list of establishment, which is set out in date order, begins at No. 1 with the University of Cambridge, established in 1231, and ends with No. 1,002, the Marylebone Cricket Club, or MCC, established by royal charter on 12 December 2012. That is not a bad pair of bookends for this amendment, so I hope that the Government can be persuaded to look sympathetically at the plight of this important and widespread set of bodies. I beg to move.
I tried to explain what would be the case with unincorporated associations but, given what the noble and right reverend Lord has said, I will certainly look into that.
It is the fate of those of us who scrutinise legislation to spend most of our time pushing against a door that remains firmly shut. When the door suddenly opens, one is inclined to stagger into the room slightly off balance. I am extremely grateful to my noble friend on the Front Bench for that very constructive reply. I invite him to confirm that charitable incorporated organisations will be on the list that is being considered. If he cannot tell us that now, perhaps he can write and let us know. For the charity sector, that is going to be an increasingly important corporate form because of the limited liability that it affords to trustees, who otherwise have unlimited liability. As the noble Lord, Lord Forsyth, would say, it will apply to Scottish CIOs as well. Can he give us any further reassurance?
I have a note that includes the CIOs. We will be looking into this issue, including the Scottish incorporated organisations, so I can give my noble friend as positive a reply as I am able.
It is therefore with great pleasure that I beg leave to withdraw the amendment.
It is hardly to my surprise that I discover that in a group of people who are involved in politics, everybody thinks that political activity is very special and ought to be granted privileges not granted to other activities. It should not come as a surprise to any of us that we are all very keen on it and understand its importance. My question is whether we think that because we have an interest in politics and believe it to be a noble and important activity, we have a right to expect the electorate to grant us that privilege—an exemption from our other duties as taxpayers. I would argue that we do not.
My Lords, I wish to add a few words. This discussion shows that in the area of political funding, for every solution there is a problem. I take a more sympathetic view of the issue than my noble friend Lord Finkelstein because I think that it is dangerous for parties to depend for their existence on a few major donors, wherever those donors may come from. We therefore have to find a way to replace those donors either with the state or by encouraging more people to make their donations worth more: for example, by means of gift aid, thereby taking them into the charity arena.
At the moment, there is a disconnect between the general public and Parliament. There are a number of reasons for that but the noble Lord, Lord Campbell-Savours, put his finger on it: a large proportion of that disconnect is due to difficulties in the area of funding. Some reports are blown up by the newspapers but the public is left with the impression that everybody has their nose in the trough. Even when people are found not guilty of offences in this regard or libel suits are successful, that impression is nevertheless left behind.
I offer a personal view on this. I am on the Lord Speaker’s outreach panel, the members of which give talks in schools, mostly to sixth forms, but sometimes to members of luncheon clubs and so on. It is interesting to see the reaction of 17 and 18 year-olds to talks about Parliament. After you have told them a bit about what we do, you ask them what they think about Parliament and the subject of money always comes up. It is not a question of one party or the other but of a general “smell”. At the moment, we are not passing the “smell” test as far as 17 and 18 year-olds are concerned. I am not suggesting that this amendment is perfect, but it provides a way for us to begin to address the “smell” test and start to deal with some of the issues that so far we have failed to grasp. If we do not grasp them, I fear that the reputation of Parliament will continue to decline because the newspapers and the media will continue to make hay with our reputation.
Although my noble friend is absolutely right about his narrow point, he has to decide where the balance of advantage and disadvantage lies. We should tell our fellow citizens that this process should mean a lot to them as it is the means by which irreconcilable policy issues are reconciled, and that if we do not reconcile them inside this place, we literally fight it out in the streets; and that is not very attractive either. Although I do not think that the amendment is the answer to this problem, I am sympathetic to it because it is the beginning of the answer and deserves to be explored further.
My Lords, I have always been an agnostic about this issue and it is rare that I agree with the noble Lord, Lord Campbell-Savours, but I thought that his speech was remarkably informed. However, the important point is that those who do not want this measure have to find an alternative; and that is the trouble. Every time you talk about party political funding, people do not like whatever you suggest, so you end up with a system which is clearly not acceptable.
This measure is the best solution I can think of for the very reason that the noble Lord who has just spoken put forward: that is, whenever you give a talk in schools, money is the universal and everlasting concern that is always raised. I am not sure that it is easy to answer it because I know perfectly well that, in all the cases I have ever known, donors to the Conservative Party did not get what the newspapers thought they got. I think of a specific occasion when I was a Minister when, because somebody dared to tell me that a particular person was a donor, I am afraid that the opposite happened to what would otherwise have happened. I am sure that the noble Baroness on the Front Bench opposite would agree that such things happen on the opposite side of the House as well. That is what decent people do but it is not what indecent newspapers pretend those people do.
If our whole body politic is being poisoned by the present system, it is incumbent on those who object to the measure being put forward to suggest a different, better solution. I hear none, so, although I do not particularly like this measure, I do not know of a better one. We need to think about this issue much more seriously. The political parties should not wander on saying, “Well, we cannot think of anything better so we will go on with this”, because it is damaging the whole system.
My Lords, as we approach this last group for debate I shall be as brief as I can. This amendment inserts a new clause into the Bill and provides for the operation of the Act to be subject to a review. Whatever one’s views on the purpose of the Bill and whether it is sufficiently necessary, proportionate and effective, whatever one’s views are on the process of the Bill and whether it is too quick or perfectly adequate or whatever one’s views are on the implications of the Bill, one thing is certain: it has proved controversial. If this were not so, I am sure that the Government would not have agreed to the pause during the past few weeks. As the NCVO said in its briefing on this particular part of the Bill, three senior parliamentary committees have raised their concerns about it: the Political and Constitutional Reform Committee, the House of Lords Constitution Committee and the Joint Committee on Human Rights.
Yet at this stage, all our views and opinions are so far merely supposition. We have yet to meet my noble friend Lord Tyler’s unintended consequences. This probing amendment is designed to ensure that the operation of the Act, in particular Part 2, is reviewed once we have had some real-life experience on its operation. My amendment suggests a review within two years of it coming into force. This will, I presume, mean a review commencing in the spring of 2016—that is to say, about nine months after the next general election, close enough that the lessons learnt in that election will remain fresh, but not so close that those lessons are distorted by the passions inevitably aroused during the campaign itself.
This approach, which is supported by the NCVO, offers the Government the opportunity to say to the doubters, “Let us see what happens in the run-up to and during the general election in 2015, let us then have a formal review and then Government, Parliament and the parties affected, including the charity sector, can decide and lobby for whatever changes need to be made”. I beg to move.
My Lords, I wish to speak to Amendments 181A, 181B and 181C, which all move in the same direction as the noble Lord, Lord Hodgson, on reviewing the Act. We made it clear from the standpoint of the commission, from the word go, that our recommendations, as a result of only a fixed five weeks of consultation, were only provisional for the 2015 election and we were very glad to learn from the Minister that he thinks that it should be reviewed.
Amendment 181B, also in the names of the noble Baroness, Lady Mallalieu, and the noble Lords, Lord Cormack and Lord Ramsbotham, puts forward the recommendation that the review should be undertaken within six months of the next parliamentary election. Amendment 181C, also in the names of the noble Baronesses, Lady Mallalieu and Lady Williams of Crosby, provides that the review should be undertaken within one year. That one-year recommendation is closely linked to Amendment 181A, which provides a sunset clause so that the Act would cease to have effect on 31 May 2016, and therefore at the end of Amendment 181C we say that the committee set up by the House to review the Act should report on its conclusions and those should be debated in both Houses before 31 May 2016. There is a clear timetable for this, and I hope that the Government will accept it.
It has been borne in upon the Government that there are issues here which are far more difficult and complex than they first thought when this legislation was put before the other place in July. We have seen this in particular in relation to constituency working, in relation to coalition working, and in relation to what is the actual heart of this, which is the definition of controlled expenditure. These are major issues that will need to be reviewed after the 2015 election.
My final point is that it is clear that the Government have approached this legislation from the standpoint of how electoral law might be abused. It is the contention of those who are heavily engaged in the democratic process, charities and other campaigning groups, that in trying to clamp down on potential abusers, they have severely curtailed the legitimate activities of people who want to contribute during an election year. The Electoral Commission has said that much of the present Act would be a burden on charities and NGOs generally. When the Minister goes away and thinks about what has been said today, I hope very much that he will do all he can to give NGOs that want to contribute to the democratic process much greater freedom and the liberation to do so without fear of crossing registration thresholds and so on, as would happen if the present Bill goes through unamended. I hope that not only will he think about what has been said both today and on Monday, but that he will support the idea of a sunset clause and a review within a year.
My Lords, I will very briefly say that of course we need to be aware of the effects of any legislation and that often these effects do not become clear until after the legislation is in force. As far as Part 2 is concerned, the Electoral Commission already has, under PPERA, the statutory function of reporting on the conduct of elections. That report will include how third-party campaigning is carried out.
I reassure your Lordships that we agree that the impact of the provisions of Part 6 of PPERA, which would include, if it passes, the measures in Part 2 of this Bill, should be subject to a review after the 2015 UK parliamentary general election. The passage of the Bill has shown that the provisions of PPERA are not necessarily as widely known as they ought to be, and even less well understood. The 2015 election will provide an opportunity to review the effectiveness of the provisions of Part 6 of PPERA as enhanced by Part 2 of this Bill.
The Government are still considering the precise details of the review but we commit to laying the review before Parliament, and a government amendment to that effect will be tabled on Report. Such a review was recommended by the Commission on Civil Society and Democratic Engagement, led by the noble and right reverend Lord, Lord Harries, and we are grateful to him for that recommendation. When the review is carried out, it is only right that Parliament should have the opportunity to consider how to respond to its findings.
The reason I hesitate in agreeing to the sunset clause is that Amendment 181C calls for the report to be debated “before 31 May 2016”, whereas Amendment 181A would have the effect that Part 2 would expire “on 31 May 2016”. It is important that, if we have a review, it is a proper one. If there are things that need to be done, there should be an ample opportunity for Parliament to take steps and consider any amendments that are required. That would not necessarily give a proper opportunity for a full review and for Parliament to take any necessary legislative steps. The spirit is that there should be a review. It should be brought to Parliament. It is clear to all parties, regardless of who is in government after 2015, that the will to have a review and learn the lessons that any review might teach us is there. In these circumstances I hope that my noble friend Lord Hodgson, who set the ball rolling in this, will be prepared to withdraw his amendment.
I hope this will be the last time that I will be on my feet in this Committee stage. I thank noble Lords in all parts of the Chamber for their contributions. It is important that we have had them. I also thank noble Lords for the good nature in which, debating pretty complex matters, our deliberations have proceeded. The Government have been listening and will reflect over the Recess on the matters that have been raised in your Lordships’ House.
My Lords, for the second or maybe the third time this afternoon I can say how grateful I am to my noble and learned friend for his very positive response. It has been a long afternoon and I take this opportunity to thank him for the courteous way in which he has dealt with the extensive probing to which he has been subjected. In withdrawing my amendment I hope that it is not out of order if I wish him and all members of the Committee a very happy Christmas.
(10 years, 8 months ago)
Lords ChamberMy Lords, I support what has been said, not only by the noble and right reverend Lord, Lord Harries, but by the noble Lord, Lord Tyler. I am aware of a number of campaigning organisations that have been to see Ministers, expressed their concerns, and been told repeatedly, “You have absolutely nothing to worry about; you would not be caught by any of this”. It is a reflection of the way in which the Bill has been drafted that if those Ministers have got it wrong, they should not have been in that position in the first place because it should have been clear to them. It is still not clear whether, for example, a rally, a demonstration, a march, a rural manifesto, a score card or even a round-robin hustings with all candidates present would fall foul. All that needs to be made absolutely clear. I echo what has been said by the noble and right reverend Lord: it is no good getting a quango to do the drafting; we want Parliament to do it so that people can see what is allowed and what is not.
Perhaps I may add to what has been said about the amendment in this group that I am particularly concerned about, and on which I hope the Minister will be able to reassure us straightaway today—Amendment 159B in the name of the noble and right reverend Lord, which removes from the provision expenditure relating to campaigning on,
“legislation before Parliament during the regulated period”.
Such campaigning would relate to the success or failure of legislation that was currently before Parliament in that year, and must necessarily come to an end, one way or another, at Prorogation. It would not therefore, on the face of it, directly affect the election.
I again mention an interest here: I am a supporter of Stop HS2. What would be the position if the campaign to stop HS2 could not campaign during the next year from the time this Bill is due to become law, while the hybrid Bill is passing through this House? It is expected here in the early part of next year. What of a Bill like this one? If this Bill were to reach the statute book after Christmas and another Bill in the future were to come forward before Parliament—one which directly affects the way in which campaigns can be conducted during an election period, and perhaps with some draconian restrictions—it could not be right that campaigning against that legislation should be restricted in this way and that expenditure should be controlled if we were in a year before an election.
I will repeat the point I made earlier: an unscrupulous Government could effectively muzzle opposition for an unpopular measure and would have a positive incentive to bring forward their most unpopular measures in that last year of a fixed-term Parliament. I cannot believe that the Government would wish that to be the position and I hope the Minister will be able to make it clear that he will accept this amendment or something very much like it.
I too am grateful to the noble and learned Lord, Lord Hardie, for giving us a chance to discuss this very important matter this afternoon. I have not participated in the Committee stage of this Bill so far, so I need to declare an interest as a trustee of various charities, which are in the register of interests, and as the official reviewer of the Charities Act, appointed by the Government 18 months ago.
I would like to ask my noble and learned friend for some reassurance on the implications of Clause 26(2); in particular, I am following through the remarks of my noble friend Lord Tyler about unintended consequences. The noble Baroness, Lady Mallalieu, referred to round-robin meetings at general election campaigns, and I want to use that as a practical example. If a charity were to invite all parliamentary candidates in a particular constituency to one of the round-robin meetings, I presume that it would not then be caught, because it is not promoting or procuring the electoral success of one or more particular registered parties. However, suppose it was decided by the charity specifically not to invite one party: does that then mean that it is caught because—by leaving one party out—it is promoting or advocating the policies of the rest?
The particular concern that has risen in my correspondence was from black, minority and ethnic charities, which may not wish to invite—for obvious reasons—the British National Party to one of their round-robin meetings. They are concerned that, by so doing, for perfectly obvious reasons, they may inadvertently fall into the trap of, or the category caught by, the provisions of Clause 26(2). This is a narrow but important point for these quite vocal minority charities, and I hope that in due course, perhaps by writing to us, my noble and learned friend will put on record whether these people’s fears are groundless.
It may help my noble friend to know that, in the most recent guidance put out by the Charities Commission, entitled Charities, Elections and Referendums, there is quite a large section on public meetings and who is invited to them. It is profoundly commonsensical, so he will have some reassurance. It will not, of course, apply to non-charitable NGOs, but at least it applies to charities.
I am grateful to my noble friend. Of course, we are now talking about the Charity Commission: the question is, will the advice from the Charity Commission and that from the Electoral Commission be joined up? This is an issue which we shall come back to later, with amendments. I do not doubt what my noble friend has said, but the heart of the problem is the confusion about whether the thinking is joined up and what might fall through the cracks between the two sets of guidance.
My Lords, I declare my interest as patron of several charities, but particularly as vice-president of Carers UK, a campaigning charity.
I have always had a lot of bafflement about the Bill. I am baffled as to why it was introduced in the first place by a Government who have always set such store by the big society, who have repeatedly assured charities of the vital place that they occupy in public service provision and, moreover, who have set such store by putting the consumer voice at the heart of policy-making.
I am baffled, too, by how the Government have spent the pause period. It was intended to enable them to listen and think again as the result of the extraordinarily negative reaction to the Bill, especially Part 2. Clearly, the Government have neither listened nor thought again. I remind them of what consultation means: it means not only listening, but acting as a result of what you have heard. It is clear from what others have said that we still have not had enough reaction from the Government. We now hear that the Government’s reaction and the actions that they propose will not be given in time for this Committee stage and perhaps not until very near Report. The provisions of the Bill, I am afraid, remain excessively broad in scope. There is too much discretion for the Electoral Commission and far too much uncertainty remains. That, as we have heard from other noble Lords, will trip up charities and stifle their voices. Why the rush for this Bill? It is clearly not yet fit for purpose.
The commission on the other hand—I pay tribute to the noble and right reverend Lord, Lord Harries, and his commission—has used the pause very effectively indeed. The result of its work is before your Lordships in the form of the excellent report and package of proposals that have been put together, which we shall debate not only in this section but elsewhere in the Bill.
So far as controlled expenditure is concerned, I will only say that it is vital that there is clarity—indeed, not just clarity but certainty—about whether and when which activities will count towards controlled expenditure. The group of amendments, particularly those of the noble and right reverend Lord, Lord Harries, and his colleagues, will go some way to addressing that issue, and I urge the Government to accept them.
(10 years, 8 months ago)
Lords ChamberMy Lords, the noble Baroness has given us a sobering picture of the future of US political funding. Before that, we heard from my noble friend Lord Phillips, who, as ever, is a passionate advocate and has a lifetime of experience in charity law. He and I have had many debates on this issue. One therefore has to listen with care to his explanation and how he places his case, particularly when it is supported by some experienced and heavyweight voices from the Liberal Democrat Benches.
However, I hope that he will forgive me if I say that I am not convinced—at least, not yet convinced—that charities should be exempted from the Bill. I accept the seductive simplicity of his argument, but I think that it is based on an ideal world that I fear no longer exists, if it ever did. In part, the noble Baroness, Lady Mallalieu, put her finger on it when she said that charities have a special status in the eyes of the public. They get it not just because of tax but because the charity number is seen to be something that carries with it a stamp of quality, and therefore charities have something that is not granted to people who do not go through the Charity Commission hoop.
I see two major challenges to what the noble Lord proposed. One is the role of the Charity Commission itself, first of all at an operational level. We have said that there are 160,000 registered charities and there are probably another 160,000 unregistered charities: that is a third of a million charities. The noble Lord made reference to this in his opening remarks. The commission therefore faces a huge operational challenge just to deal with basic charity law, and to hold charities to account in the most basic way. When he says that the Charity Commission has very rarely asked trustees to put their hands in their pockets, I accept that. Is that because nothing is going wrong or because the commission does not know what is going wrong? That is one of the issues we have to address; so there is an operational problem.
Then there is a strategic challenge to the commission. The commission is an organisation that is under a huge strain. Some noble Lords will have seen the National Audit Office’s report, which had some disobliging things to say about the way the Charity Commission operated. It faces considerable problems in respect of the public benefit test, the aftermath of the independent schools test and the Plymouth Brethren case, which is now before it. It has had problems with links to Her Majesty’s Revenue and Customs, the Cup Trust and other tax-avoidance measures. It has also had a 40% cut in its budget. I ask my noble friend whether it is a practical proposition to ask the commission to take on another huge area and start to drill down on 335,000 charities to find out whether they are complying in a way that is, as the noble Baroness said, fair across the piece.
The noble Lord might say to me, “Of course it should have additional resources”. If it were an ideal world, that might be possible, but it is hard to argue that the Government should devote additional resources to providing the Charity Commission with the ability to enforce electoral law when the Electoral Commission already specialises in it and is up to date with all the arrangements of the way that matters are proceeding—as opposed to the Charity Commission, for which it would be one of about 10 major tasks it would have to carry out. That is my concern about the way the structure would work in real life.
My second concern is really the point made by the noble and learned Lord, Lord Hardie: the nitty-gritty point of the loophole. I fear that it will attract those who wish to push the envelope. The noble Baroness, Lady Williams of Crosby, said that she thought the envelope was being pushed—and I am sure it is. In my review of charities, Members of the other place said to me, “Some charities are really getting into what we are doing as Members of Parliament”. There is a sort of concern that charities are doing things that get very close to the role of a Member of Parliament in representing his or her constituents. This amendment will open the way to the more adventurous and to the outliers who choose to become charities, because it will be seen as a way to minimise the regulatory burden and to evade some of the issues that we have just been discussing as part of this Bill.
It is the outliers who will most likely damage the sector’s reputation. The sector has historically had a very high reputation with the public, but this reputation is not immutable. We think now of the Cup Trust, as I mentioned. That has undoubtedly made members of the public consider charities and their role. We subsequently had a very public row about the payment of chief executives and senior staff of charities, and how that is commensurate with charitable status. I am not making any comment upon it; I am saying that the charitable sector has considerable challenges to answer if it is not to see some leeching away of the enormously strong public reputation it has historically enjoyed.
If we were to accept the noble Lord’s amendment—seductively simple and attractive though it is—we would run the risk of putting a burden on the Charity Commission that it will not be able to fulfil, and giving it tasks that it will find very difficult. The result could be that we will have difficulties, problems and issues with the public that, after the next general elections and elections thereafter, will be seen to rebound on the charity sector. We need to make sure that does not happen, because, as the noble Lord said, it is such a precious jewel in our crown. It provides a way for so many of our fellow citizens to put something back, to create something and to connect with their fellow members of society. It would be a tragedy to lose that. That is why I fear I cannot support the noble Lord’s amendment tonight.
The commission did not support taking charities out, for the reasons put so fluently and eloquently by the noble Baroness, Lady Mallalieu. I will not add to what she said, but I want to respond briefly to points made by the noble Baroness, Lady Williams, and the noble Lord, Lord Phillips.
We are debating constituency limits in a separate set of amendments, so I will respond to that issue then. The noble Baroness has unrivalled experience and knowledge of the American system and the British system, and I do not doubt for a moment what is happening in America. But we have not yet been presented with any real evidence that it is happening in England. The precautionary principle is quite right: we have to beware what might happen. But we also have to make sure that our reaction is not disproportionate.
I am very grateful to the noble Lord. I just wanted to ask him how he thinks matters will develop if, at a future general election, the Electoral Commission determines, on a complaint to it from a non-charity, that a charity has done something that is outside the electoral law but may be inside the charity law. Which will be pre-eminent? How will be that determined? Does the noble Lord, Lord Phillips, think that, whatever happens, charity law will come out on top, and therefore are we going to allow that there will be an unlevel playing field because the Electoral Commission’s views will be seen to be subordinate to those of the Charity Commission?
I admit that hypothetical examples of that nature at this time of night rather baffle me. I am not a lawyer either. But I think that the subsequent amendments that the noble Lord is suggesting, which should in any case mean that there is a coming together of the guidance from the two commissions, should be adequate to this task.
I just want to pick up a point the noble Lord made earlier. He has huge knowledge of the charitable world. He has given a lot of time, energy and specialist attention to the charities, but he seemed to suggest earlier that somehow or other the Charity Commission was not up to the job: it was not in a position, not able, not capable and it did not have the resources to police CC9 and the subsequent advice. That is a very serious charge. If it is his view that the Charity Commission simply is not capable of doing this job, then I admit that the case put by my noble friend Lord Phillips of Sudbury may be rather weaker than I anticipated. I do not think the noble Lord was saying that, but perhaps he would like to clarify that point. If he was saying that, I understand that there is a real doubt about whether the commission is up to the task it has set itself. In my experience of charities and of the previous advice that was given to charities, I thought it was well up to the task and there have been comparatively few cases where the rules have been infringed.
Again, I am very grateful to my noble friend. I simply invite him to go to the Printed Paper Office and get a copy of the National Audit Office’s report on the Charity Commission, published two weeks ago. That is its view after six or eight months’ investigation. He can see it all laid out, warts and all—some good, some bad—but the NAO has some pretty disobliging things to say about the position of the Charity Commission.
My Lords, it is late at night to have to introduce a new element into the debate, but the natural conclusion is that the Charity Commission should withdraw completely from this role of policing what should and should not happen in terms of public policy and elections. But CC9 is there and the Charity Commission is now developing more advice on this point. Either we trust the commission to do the job or we do not. I fear that what my noble friend Lord Hodgson has just said does not increase my trust.
In those circumstances, we are still faced with a genuine dilemma. As the noble Lord, Lord Low of Dalston, said, as things stand at the moment many charities, large and small, feel that they are going to be subjected to two quite separate sets of regulations in this regard and they feel that is unfair. That seems to be a very critical issue, and I hope that in due course this House will be able to address it.
(11 years, 9 months ago)
Lords ChamberMy Lords, I shall speak also to Amendments 32 and 44. I am grateful to the noble Lord, Lord Dubs, for putting his name to these amendments.
We come now to Part 2 of the Bill, which is concerned with closed material procedures. They are a new development in UK civil courts and the proposal has not proved to be uncontroversial. We discussed the challenges of CMPs extensively in Committee in July. I am aware that noble Lords have tabled a number of amendments in this group, which will enable a wider discussion of this important issue, so I will cut to the chase. If in cutting to the chase as a non-lawyer I trespass on some legal niceties, I apologise in advance.
My concerns about closed material procedures can be grouped under two main, broad headings. The first is the issue of fairness. Can a trial in which the accused does not have an untrammelled ability to test fully the evidence against him, interacting as appropriate with the best legal advice, ever be fair? The issue of fairness is one that I shall return to and consider in more detail when we examine the role and duties of the special advocate and consider the rules of court.
My second general concern is what might be described as the danger of mission creep. It is on this that Amendments 31, 32 and 44 focus. Having heard from my noble and learned friend on the Front Bench, and having listened carefully to the powerful and informed speeches of the noble Baroness, Lady Manningham-Buller, I accept that there may be cases where a closed material procedure is required. However, on all the evidence that I have read, it would be a rare event indeed. I have no doubt that my noble and learned friend on the Front Bench and the Government believe that the procedure would be used only very occasionally. However, times change, Ministers change, Governments change and, above all, circumstances change, and with those changes may come—not necessarily will come—new approaches. My concern is the risk that what begins as a rare event will over time morph into the default option.
I would like to see enshrined in the Bill a set of steps—hurdles, if you like—that the Government of the day will have to clear before they can resort to a CMP. The first is a requirement to go through the public interest immunity procedure, from which the judge can reach a balanced conclusion on whether the interests of national security require a closed court. Amendment 31 would insert a new clause at the beginning of Part 2 requiring a PII application to be made in any case where a CMP is envisaged. It would set up a series of requirements for making such an application. Amendment 32 lays down a further series of tests to be met in associated court proceedings. Amendment 44 would prohibit the use of CMPs where a claimant’s loss of liberty may result.
I will briefly outline one or two of the key provisions in the amendments. Subsection (1) in Amendment 31 would require the Secretary of State to make a PII application in any case where he considered that evidence would be disclosed that would damage national security, and where that concern outweighed the key public interest in open and natural justice being done. Subsection (2) would ensure that the Minister had to certify why disclosure of each document was withheld; it states that each certification will have to be considered individually by the court. This would enable the judge to balance the competing interests of national security and open justice—what I am told is called the Wiley balance.
Subsection (3) would give the judge a crucial judgmental role and is in contrast to what some have called the judicial straitjacket in Clause 6. As highlighted in our debate in July, the PII system does not enable a judge to rely on material that is seen by one party and not another. As a general rule, it does not take place in secret. In this way, national security can be protected while ensuring fairness, transparency and equality of arms. It is worth remembering also that, unlike CMPs, PII is not an all-or-nothing process. A wide range of tools is available to judges, including the use of redactions and in camera hearings, to ensure that justice can be done while national security-sensitive information, such as the names of agents or their operating techniques, is excluded. My noble and learned friend on the Front Bench said that a first-stage PII process would be costly and illogical. However, we have been reassured by the special advocates that this is not right and that it is CMPs that are likely to prove costly and time-consuming—in addition to their other, controversial qualities.
Before the noble Lord, Lord Hodgson, replies, it may be of assistance to the House if I seek to respond to a specific question put to me by the noble Lord, Lord Owen. I am very grateful for the general support around the House for the concept of judicial discretion in this area and that CMPs should be a last resort, if they are to exist at all.
The noble Lord, Lord Owen, asked me to address Amendments 48 and 49, to which the Minister referred. I am grateful to the Minister for the very careful way in which he went through the amendments. The noble Lord, Lord Owen, was concerned that Amendments 48 and 49 would introduce a duty to provide a summary or a gist of the material if the closed material proceeding is to be ordered. The answer is that disclosure of the summary or the gist would be required only if the Government wish to proceed with a CMP. If they do not wish to disclose the gist or the summary, which is a matter entirely for them, they do not have to do so under the amendment. There simply would be no closed material proceeding. I suggest that that is entirely appropriate if we are to have a fair balance of the interests in open justice and other competing interests. I am grateful to the House.
I am extremely grateful to my noble and learned friend for the courteous and extensive way in which he has replied to Amendment 31, on which this debate has hung. Perhaps I may make clear to my noble friend Lady Neville-Jones that this was not to end CMPs: it was merely to narrow the gateway to CMPs by requiring a PII process first. The noble Lord, Lord Pannick, has discussed a number of amendments that give effect to the recommendations of the Joint Select Committee. If I was going to be irreverent, I might say that I regard those as offering 80% of the loaf, as opposed to 100% of the loaf that I was seeking.
However, I have to recognise that the Joint Select Committee has spent a great deal of time on this, a great deal more time than I have. Speaking as it does for both Houses of Parliament, it speaks with great authority. I also practically recognise that 80% of a loaf is better than no loaf at all. I shall seek, with the leave of the House, to withdraw my amendment and then give my support to the noble Lord if he chooses to move his amendments to give effect to the Joint Select Committee’s proposals. I beg leave to withdraw the amendment.