Political Parties: Funding

Lord Ryder of Wensum Excerpts

Thursday 1st July 2010 Lords Chamber

[Lord McNally]

That is absolutely true. We have seen in all political parties a nuclear arms race of political spending. I pay tribute to the last Government for putting a cap on it, for which I think even the Conservative Party was grateful in the end. If there was no cap, fundraising would go on and on. The problem with campaign expenditure is that it is like expenditure on advertising: we all know that half of it is wasted, but we do not know which half.

[Lord Ryder of Wensum]

My Lords, while I vividly recall the introduction of Short money 35 years ago and the help that it gave to the then Opposition, does my noble friend not agree that during these days of curbing public expenditure it would be wise for the Short money and the Cranborne money to be frozen at present levels for the duration of this Parliament?

[Lord McNally]

It would ill become a government Minister to start suggesting that. I was a special adviser to the Government who brought in Short money and I know the benefit that my party got in opposition from Cranborne money. I know that it is easy to play to the media on this, but political parties need proper funding to do their democratic duty. If you do not do it through legitimate, open, transparent public funding, big money will come in, which, in the end, corrupts the whole system.