Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill Debate
Full Debate: Read Full DebateLord Tyler
Main Page: Lord Tyler (Liberal Democrat - Life peer)Department Debates - View all Lord Tyler's debates with the Attorney General
(10 years, 11 months ago)
Lords ChamberMy Lords, we have Amendment 166A in this group. Before I come to it, I have a great deal of sympathy for the approach of the noble and learned Lord, Lord Hardie, but with an important reservation. I noted with interest that he referred to the advice of the Committee on Standards in Public Life, but the committee gave much more detailed consideration to some of these issues in its later report of November 2011. That is the context in which we are having this discussion. Our amendment seeks to return to the existing, well known situation of the registration threshold, with one very important qualification, to which I will refer when I also speak to the amendments being proposed by the noble and learned Lord, Lord Hardie, and others.
Nursing my cold and cough yesterday evening, I carefully read the whole of our Hansard proceedings on Monday. If anybody has been having as much difficulty in sleeping as I have recently, I fully endorse that as a very good way of avoiding insomnia. I was struck that almost all the constructive amendments to make this part of the Bill more workable and effective came from the Cross Benches, and from the Conservative and Liberal Democrat Benches. This clearly reflects the reality outside the Houses of Parliament. The organisations potentially affected by its provisions want to ensure that the Bill deals with the doubts and the defects in the existing law, the PPERA 2000, rather than simply maintain some of the unsatisfactory features of that status quo.
I have met representatives of literally dozens—scores, perhaps even hundreds—of organisations over recent weeks, some charities and some not, to discuss the perceived effects of the Bill. It is becoming increasingly clear that all serious organisations recognise that the loophole that could enable a single-issue-obsessed multimillionaire or campaign group to target huge sums of money into one or more marginal seats must be addressed. One of the problems with the other amendments in this group is that they do not restrict that targeting into a small number of seats. Our amendment does.
I am sorry to stop the noble Lord in full flow, but we have all had many conversations with charities over the past weeks and not one charity has mentioned that to me personally or to my noble friend. Can the noble Lord name the charity that has these grave fears?
My Lords, they are innumerable: NCVO, Bond and a whole number of organisations have said to us that targeting into one constituency or a small number of constituencies is recognised as a possible problem. It is not something that they necessarily want to do but they recognise that there could be a threat.
As my noble friend Lady Williams pointed out so powerfully on Monday evening, this type of deliberate distortion of our electoral process is far advanced elsewhere, in the USA in particular, but is already on its way this side of the Atlantic as well. By definition, however, we need to ensure that the net is not of so fine a mesh that we create a totally inappropriate bureaucracy for much smaller, much more locally based groups. Here I think I share the objectives of the noble and learned Lord, Lord Hardie, and others.
I referred on Monday to this essential balance between transparency and accountability on the one hand and excessive regulation on the other. The collective contention of very many organisations is that while the 2000 legislation was a concern and is defective, many of them simply did not have to worry in the past because their spending came beneath the existing thresholds.
In evidence to the Commons Select Committee, the chair of the Electoral Commission described the threshold as the measure that determined how far you go down in the pyramid of organisations engaged in campaigning. I think she described the situation very well. It is not a simple, two-dimensional triangle; it is a three-dimensional pyramid, so the further you go down in terms of the threshold, the more small organisations—huge numbers of organisations—potentially feel threatened and have to look to the way in which they are operating. At the top are a small number of large organisations that might seek deliberately and decisively,
“to promote or procure electoral success”,
of a party or candidate—the now accepted definition in the Bill—and at the bottom are a whole range of smaller bodies that are concerned that their activities might be perceived to be doing so.
We can continue to seek to reassure them as to whether they really would be caught by definition or we can provide explicit reassurance in the Bill by lifting the threshold to its existing level. I think we should do just that. Our amendment on this subject deals neatly with the conundrum that the Government have faced in so doing. My noble friend Lord Wallace of Saltaire said in his letter to colleagues on 5 December that in increasing the thresholds the Government would,
“need to take account of the consequences for the constituency limits set out in the legislation and the Government will reflect further on the detail of how to bring this about”.
This comes to the nub of the issue I referred to earlier. I hope that the amendment helps my noble friend.
The Minister was right, of course, that it would be plainly illogical to have a simple threshold of £10,000—or a much bigger one of £20,000 or £25,000—and then have a constituency spending limit during the post-dissolution period of £5,800. An organisation could be spending the whole limit of £5,800 and beyond without even being registered and therefore without declaring the expenditure. This would undermine the whole spirit of transparency and accountability that runs through the Bill. In the second part of our amendment, we stipulate that a higher threshold can apply unless all the spending is targeted in one constituency. I have heard the argument that this somehow adds complexity, but I do not accept that.
Of course, in a later group we will come to other detailed amendments, which clarify and make more workable the application of constituency limits. A whole section will do just that. I am sure that the Committee will recognise how crucial these are to the success of the Bill, and to its acceptance by MPs in the other place. After all, they themselves face very stringent expenditure limits at elections. When Amendment 166A in this group is taken in conjunction with our later Amendment 170A, which clarifies the scope of the constituency limit, it will be very clear when spending has occurred only in one constituency.
We had a very thorough debate on this subject on Monday; I do not want to go over again everything that I said then, and rerun that debate. I will certainly reflect on what the noble Baroness has said; indeed, I spoke on Monday about some of the clarity sought. I think that the noble and right reverend Lord, Lord Harries, was encouraging me to act, and said that a number of people wanted to put things in the Bill. He listed a number of things, and I said that there had to be a balance between what we put in a Bill and what we leave to guidance. That is a perfectly proper matter for us to reflect on, and we shall bear the noble Baroness’s comments in mind.
I was about to say that charities and other campaigners had expressed fears that because low-level campaigning and expenditure could be regulated as a result of the Bill, small organisations would face a disproportionate reporting and compliance burden. Those concerns have been reflected in most of the contributions this morning. My noble friend Lord Tyler talked on Monday about the balance between transparency and regulation. Almost inevitably, the more transparent we seek to make the arrangements, the greater will be the amount of regulation. That point was echoed this morning by my noble friend Lady Williams.
This is the balance that we are trying to get right. We believe that there should be greater clarity about who is campaigning for the electoral success of parties or candidates—but equally, we do not want small campaigners to be dissuaded from taking part in public debate by fear of having onerous burdens placed upon them. Therefore, in line with what my noble friend Lord Wallace of Saltaire committed in the House on 5 November, as I have said, and, indeed, as I said when opening the first set of amendments on Monday, the Government will bring forward amendments on Report to increase the registration thresholds.
Will my noble and learned friend make one point absolutely clear to the Committee? If, as has been suggested this morning, the registration threshold was moved as high as £25,000, it would be perfectly possible for an organisation or individual to spend £24,999.99p in one constituency without being in any way accountable for how that money was spent and without having to be transparent about where the money came from, even though that sum would far exceed what we might expect to have as the limit on spending. It simply would not be known that that was happening because the registration threshold was so high; hence the significance of the measure that my noble friends and I have tabled.
My noble friend anticipates what I was about to say. However, he is right, subject to the caveat in the Representation of the People Act and its interplay with the restrictions on spending in individual constituencies, that sum would be almost twice what the candidate could spend. It seems a bit perverse that, if you have a campaign, you cannot answer for it if you are a candidate or party. However, we will come on to the constituency limits and the important interplay with the Representation of the People Act.
The noble and learned Lord, Lord Hardie, referred to the figure of £25,000, which, as my noble friend says, would allow quite a lot to be done without the need for transparency. Nevertheless, the noble and learned Lord made an important point abut there being the same threshold in each of the constituent parts of the United Kingdom. At a very early stage—I think before I had been given the “hospital pass” —I met a group of citizens in my former constituency as my successor thought that it would be a good idea for me to meet them. One of the points that they made was that, in reducing the thresholds from £10,000 and £5,000 to £5,000 and £2,000, there had been a bigger pro rata decrease for Scotland, Wales and Northern Ireland. I have certainly raised that issue. It is an important issue with regard to what the threshold is in the different parts of the United Kingdom. I certainly undertake that we will consider that point. I think it was also raised by the noble Baroness, Lady Royall, specifically in relation to Northern Ireland.
I reiterate the point made by my noble friend Lord Tyler with regard to constituency limits, consistency and not subverting the constituency limit by having a threshold that is too high. I accept that some of those who argue for a higher level do not want a constituency limit at all, but we shall deal with that in greater detail later.
I repeat that our objective is to ensure transparency, but we need to strike a balance. We do not want to have a chilling effect, even if it is just a perception on the part of smaller organisations that they would exceed the threshold even if their activities were not necessarily ones that would require them to register. Therefore, I repeat that we believe a substantial increase from the level in the Bill would, indeed, be appropriate.
The noble and learned Lord, Lord Hardie, possibly in a festive mood, tried to be seductive by suggesting that we accept his first amendment and restore the status quo. It is seductive but, at the risk of spoiling the Christmas spirit, I do not think that the legislative hokey-cokey of “in out, in out and shake it all about” is the best way to do this. The Government will bring forward an amendment on Report which, as I have indicated, will introduce a substantial increase from the level in the Bill. On that basis, I urge the noble and learned Lord to withdraw his amendment.
My Lords, I wish to speak to Amendment 169A. I would like to ask the Minister what the rationale was behind such a drastic reduction in the spending limits. For England it was a 60% reduction; for the other nations it was 70%. This is a vast reduction, for which no reason was given. The commission which I have the privilege of chairing simply wishes to revert to the original PPERA figures plus inflation. Those are written in the amendment, and would mean £1,125,000 for the year for England; the comparable figures for Scotland, Northern Ireland and Wales would be £155,000, £86,000 and £40,000. We are simply recommending the original PPERA figures plus inflation.
I will give one example of a big spending campaign which is concerned about the cap. In the 2010 general election, Hope not Hate registered £319,231 of spending in England with the Electoral Commission. It is a national grass-roots organisation that seeks to challenge and expose openly racist political parties, candidates and policies. It works on the assumption that there is a risk that far-right racist policies might be campaigned on vigorously at election time, and it wishes to oppose that with racially tolerant policies. For example, in an area like Barking and Dagenham in 2010 where it mobilised people, its spending included printing of leaflets and Hope not Hate newspapers, staff time to write campaign literature, media coverage costs, communicating the campaign to supporters, and its battle bus bill. Of course, an organisation such as this, quite properly, needs to register and needs to be totally transparent in what it does, but the spending limits proposed in the Bill would severely reduce what that organisation would be able to do. It spent in 2010 £319,231, which is above the limit in the Bill. There is clearly a strong case for reverting not only to PPERA but to PPERA plus inflation on the cap.
I wonder if I may ask the noble and right reverend Lord a question. He and his commission have justifiably encouraged us to see the package—how different elements of the Bill stick together. I draw his attention to the fact that his amendment, combined with other amendments to remove all constituency limits that he and his colleagues have proposed, would, if they were to be implemented, mean that the sum of £1.25 million could be spent in a small number of target marginal constituencies. That is a huge sum of money. When we come to the other sections that deal with constituency limits, will he think about the implications of the interaction between those two propositions from his commission?
The commission is keen to emphasise that every aspect of the Bill is integrated with every other. Clearly, constituency limits have to be taken into account very seriously when we are thinking about raising either the threshold or the cap.
My Lords, I should apologise to Members who were anticipating that by now we might be moving on to the QSD. It is certainly not at my insistence that this group of amendments should be taken at 1.41 pm. However, as we have been gathering from all sides of the Committee during discussions this morning, the constituency limits, which are the subject of Clause 28 and therefore of this group, are very important and of central significance to the Bill.
We have heard that the Government did not bring this legislation forward to affect charity campaigning or to stop NGOs having their say about policy issues. The purpose of the Bill is to stop big money flooding into constituencies in the year before an election in an attempt to, in one direction, augment or to subvert candidates’ own spending limits. As I have already had occasion to say to the Committee, even if we in this House did not think that was important, there will be Members at the other end of the building who would think that it was extremely important—not least, perhaps, those pro-Europe Conservative MPs and candidates who might well be targeted by substantial sums of money, let alone others who may be in a similar position and a target for single-issue campaigning by individuals, multimillionaires or organisations.
Clause 28 is very important but it is by no means perfect, as has already been made apparent by many noble Lords this morning. The Bill talks about activity that has “significant effects” in a particular constituency or group of constituencies. The difficulty is that some of the groups that we have all met might, for example, hold a rally in one constituency which would have an effect on a great many others. I recall chairing just such a constituency rally, but if it had that significance for neighbouring constituencies in Cornwall, it would be very difficult to allocate the actual expenditure in any particular way. It would be very difficult to see what relative effect this was going to have in different adjoining constituencies. Frankly, as a former candidate, I rarely worried about somebody holding a meeting in the neighbouring constituency—or, for that matter, even in my own constituency—in terms of that affecting the outcome of the election. What affects elections most strongly is direct communication with electors and, as has already been mentioned this morning, the means of doing that have become more effective and cheaper in recent years. That is what can really sway a constituency result one way or another.
Should I interpret the noble Baroness’s remarks that she is supporting the very carefully targeted Amendment 170A that I moved? That would deal with all the uncertainty to which she understandably refers.
That would certainly be a much better step than what is included at present. I would say that it is absolutely unnecessary. If it is right that the spending limits are to be reduced, does that not provide one safeguard? I return to my old friend, the Representation of the People Act 1983, which in any event provides the safeguard that people are concerned does not exist now. For all those reasons, Clause 28 needs to be scrapped.
I understand what the noble and right reverend Lord is saying and I accept that. None the less, I want him to understand that, in running a proper democracy, at a constituency level this is a very important issue.
I know that the noble Lord speaks in a personal capacity but he has also the very important, practical experience of being a member of the Electoral Commission. For the avoidance of doubt, I will read again the specific recommendation of the Electoral Commission on my Amendment 170A, which deals with this very important practical point of being able to tie down where precisely a campaign is aiming its efforts. The commission says:
“In principle we see potential benefits in defining the scope of activity covered by the constituency controls more specifically than in Part 2 of the Bill generally. For example, costs relating to material sent to specific addresses can be identified and evidenced with some confidence”,
which will deal with precisely the circumstances to which the noble Lord is referring. I hope, therefore, that there may be support from the Government for what I think is a very practical approach to this otherwise quite tricky problem.
I hear what my noble friend says and I think he will also recognise that the Electoral Commission made the point of practicality—whether this really is a practical way forward. Whether it is workable in practice has to be the test.
As the noble and right reverend Lord, Lord Harries, knows, I have supported quite a few of the recommendations of his commission, which was a very thoughtful and helpful exercise. But on this point, I am very certain that the Government must hold their ground for the sake of democracy in this country.
My Lords, it was clear from many of our previous debates that the issue of constituency limits had attracted considerable discussion, not to say controversy. The fundamental point here, which was very well made by my noble friends Lord Tyler and Lord Horam, is that it would be wrong if a third party could choose to direct its entire national spending limit at only one small part of the UK, thereby focusing the full force of the considerable spending available to it on that very small part. It would be disproportionate if that was one constituency. That point was articulated. It would be a travesty of the democratic process if so much was focused on one constituency.
To prevent such occurrences, the Bill introduces what I admit is a new provision whereby third parties will be permitted to spend only a certain proportion of their controlled expenditure in individual constituencies. Clause 28(6) limits per constituency spending to 0.05% of the maximum campaign expenditure limits applied to political parties. This amounts to £9,750. The limit applies for the duration of the regulated period for a UK parliamentary general election.
It is proposed that a third party’s expenditure would be wholly attributed to a constituency provided that the expenditure had “no significant effect” in any other constituency. It is of course possible that expenditure in a local area may be attributed to a number of constituencies—for example, in Lewisham, where I think that it would be relatively straightforward to see three constituencies.
I accept that if someone was handing out leaflets in Princes Street in Edinburgh, it would be very difficult to say that that was focused on a constituency—which I think used to be Edinburgh Central, but these boundary changes happen so often—and was not having an effect elsewhere. If anyone was handing out leaflets in the constituency which I formerly had the privilege of representing, in Kirkwall or in Lerwick, it would be almost impossible to suggest that it was intended to have an effect on any other constituency, as it would be focused in the one place. The concerns that have been expressed about how you identify boundaries will often be easier to determine with regard to specific case examples.
In response to a point that the noble Baroness, Lady Mallalieu, raised on a number of occasions, I should stress that the limits on constituency spending do not remove or replace the important existing controls of the Representation of the People Act 1983. These rules are long-standing and stipulate that third parties campaigning for a candidate or candidates in a particular constituency—which includes negative campaigning against others—may spend only up to £500. Clause 34 would raise this amount to £700. While introducing a limited requirement to keep a record of such expenditure, the Bill does not otherwise affect the provisions of the Representation of the People Act. Third parties campaigning in local campaigns would be well advised to heed the strictures of the Act. First and foremost, if a particular organisation or group intends to go into a single constituency to promote a particular candidate, or to attack a particular candidate, it would be well advised to have regard to the provisions of the Representation of the People Act.
Will my noble friend confirm that that applies to the post-dissolution period in a constituency and not to the 12 months leading up to a poll?
My noble friend is absolutely right, but it is important that we do not lose sight of that provision.
There are other types of campaigning that are already regulated under PPERA and that we consider should be subject to the national third-party controlled expenditure campaigning limits and the constituency limits which this clause introduces: first, campaigning for or against a particular party; and, secondly, when a campaign is intended, or may reasonably be regarded as being intended, to support groups of candidates because they are of a particular type or because they support particular policies or hold particular views. For instance, if a third party campaigns with the message “vote for those candidates who support green taxes”, this would be spending regulated under PPERA and subject to the national third-party controlled expenditure campaigning limits and the proposed constituency limits. For both types of campaigning, a third party could choose to direct this entire national spending limit at only a small number of constituencies. That is why we consider this clause to be necessary.
A number of amendments have been proposed. The noble and right reverend Lord, Lord Harries of Pentregarth, has proposed Amendment 170, which would remove constituency limits altogether. I accept his point that this would be for the 2015 election, and that we must look at it in that context, but I think that there is concern that a huge loophole could be created.
Some have said that there was no evidence of a problem in 2010—or, as the noble Lord, Lord Ramsbotham, said, that there has been no example of a constituency being completely swayed or influenced by third party expenditure. But how many times do Ministers receive strictures because they did not anticipate a problem? If this were not in place, what would happen after the 2015 election if the kind of event to which the noble Lord refers had taken place in a constituency and there was felt to be a considerable travesty? I rather imagine that some would say, “Ministers knew they had a Bill going through Parliament. Why did they not do something about it at the time?”. Is it the case that we always have to wait for a problem or travesty to arise before we take action?
The constituency limits will be enforced by the Electoral Commission. I have heard the concerns that have been expressed about that. The Government have been in many discussions with the regulator on this issue, and we believe that the commission can regulate spending in constituencies in the same manner as it regulates national spending. The noble and learned Lord, Lord Hardie, asked whether an Electoral Commission enforcement officer would be needed in each constituency. That is certainly not what is anticipated.
I hear what the noble Baroness says, but if we are dealing with a situation where an organisation is trying to intervene in a constituency for the purpose of promoting the electoral advantage of one particular party, one particular candidate or a series of candidates in an area, then it is not unreasonable that there might be some responsibilities that go with that, particularly with the kind of substantial volume of money that we are talking about being spent in one or a number of focused geographical areas. No one is asking them to account for the work that they are doing in trying to tackle mental health issues or alcohol problem issues—that does not arise. They are caught by this only if the amount that they are spending in one particular constituency or group of constituencies is caught by these provisions, in which case there might just be a responsibility that goes with that. The point that I am making is that there is nothing new about that in terms of its enforceability. It is something that people, not least the Electoral Commission, have been grappling with for some time.
My noble friend Lord Tyler tabled a series of amendments that he hoped would add clarity to the provision. The word “clarity” is something that the noble Baroness, Lady Mallalieu, and the noble Lord, Lord Ramsbotham, would certainly echo. My noble friend quoted the Electoral Commission with regard to his Amendment 170A, which would mean that election materials—leaflets, mailshots, adverts and so on that were specifically addressed to or delivered to households in a constituency, and unsolicited telephone calls to households—counted towards constituency limits. The main issue that I have with this amendment is that there could be key activities, such as rallies or events that were deliberately focused on an area, which would not be regulated, and it would not restrict material from otherwise being distributed or displayed. As I said, leaflets being handed out in the middle of George Square in Glasgow are different from leaflets being handed out in the marketplace of Thurso, for example, in the Caithness, Sutherland and Easter Ross constituency, which could not be said to be influencing any other constituency. However, I hear what numerous contributors have said in this debate about simplification, and there is an obligation on us to look at the provisions, without giving any commitment, to see if there is the possibility of looking generally at the question of simplification.
My noble friend also tabled Amendments 170B and 170D, altering constituency limits so that the figure was £10,000 for the whole of the regulated period and £5,000 for the post-Dissolution period. He has already pointed out that RPA kicks in for the post-Dissolution period. As for the proposal that there should be an opportunity for the Secretary of State to amend the constituency limits by order, there is already provision in Clause 30 for the Secretary State to amend constituency limits by order on the recommendation of the Electoral Commission. I hope that that covers his concerns, but no doubt if he thinks that they do not meet what he was proposing, he will indicate that to me.
His final amendment was one that I thought had much to commend it in terms of, as he said, trying to encourage political engagement. Amendment 170G would allow the constituency limit to be exceeded to a maximum of £15,000, or £10,000 in the post-Dissolution period, if a third party’s controlled expenditure was being funded by donations of less than £250 from donors within a parliamentary constituency. It would also allow a third party to spend up to 50% more than the national limit that would otherwise apply.
Because amounts below £500 are not currently considered to be donations under PPERA, the amendment would require a third party to carry out permissibility checks and record all donations, however small. This would be a fundamental change to the PPERA donation rules and would be likely to involve unmanageable compliance. Given the concerns that have been expressed about compliance and regulatory burdens, that factor would have to be borne in mind. It would increase the burden and would also risk having the opposite effect to what was intended. A large third party organisation with members and donors across the country may be able to identify sufficient donors in each constituency to give itself a disproportionate advantage, whereas a small organisation funded by very small donations would not be able to benefit in the same way.
I referred earlier to the Representation of the People Act. We are also concerned that linking expenditure to local donations in constituencies in this way could quite easily risk confusion with and undermine RPA rules or third party candidate campaigns, and I know that my noble friend would not wish to have such confusion between the two regimes. I hope that noble Lords agree that there is a need for constituency limits and that these can be properly enforced. I urge my noble friend to withdraw his amendment.
My Lords, I will respond very briefly to the debate. I think my noble friend the Minister will accept that there is real concern about making sure that we have—if we are going to have—applicable, effective and manageable constituency limits. Therefore, I am sure that we will return to this on Report. If we do not and were to remove the whole of Clause 28, I am sure that it would be put back, in one form or another, by our colleagues in the other place, who have a considerable interest in the extent to which their constituencies are subjected to considerable investment—
My Lords, perhaps I may point out that it has already been through the other place and it was not thus amended.
The very fact that it has come to us is making the point for me. I think that the other place would consider it essential to retain some constituency limits. However, I accept that there are concerns about workability. I hope my amendments will improve the extent to which they will be manageable and enforceable, but in the mean time I am happy to withdraw the amendment.