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

Debate between Angela Smith and Charlie Elphicke

Tuesday 10th September 2013 Commons Chamber

[Angela Smith]

My hon. Friend makes an important point that I will come to in due course.

This Bill puts the cart before the horse. Our contention is that this is the wrong way to tackle the very serious issues at stake and that what we actually need is an approach that focuses, first, on taking the big money out of politics and then places changes to third sector funding in the context of this much more fundamental and necessary reform of election funding. Let us be clear: that is the right way to tackle the issue because, to put it quite simply, the big money is not in third party spending. Political parties nationally—as my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) has said—spent £31 million in the 2010 election, compared with just £3 million by third party campaigners. The biggest third party spender spent just 4% of the £17 million spent by the Conservative party.

While the Government claim that this is an attempt to take the big money out of politics, they do not even mention the real source of the problem: the amounts spent on election campaigning by political parties. If the Government are serious about taking the big money out of politics, they would be looking at a reduction in the overall expenditure cap for political parties during election years. If the Conservative party, in particular, is serious about taking the big money out of politics, it will withdraw this mess of a Bill and commit to meaningful reform. This is a bad, and badly drafted, Bill and it is very unlikely that, however much it is amended, it will stand up to serious scrutiny as a fair and workable piece of legislation. It is a Bill found wanting, partly because of the lack of rigorous consultation and partly because of the lack of pre-legislative scrutiny, as the Chair of the Select Committee pointed out.

[Charlie Elphicke]

On the amendment proposed by my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg), is it the hon. Lady’s position that organisations in receipt of public funds should be allowed to spend the money on election campaigning or that they should not?

[Angela Smith]

I have noted the hon. Gentleman’s interest in this issue in the past. I point to the answers given by my hon. Friend the Member for Bishop Auckland earlier: funding agreements between the state, local government and charities tend to make it virtually impossible for charities spending public funds to spend them on any other purpose.

This is a dog’s dinner of a Bill and, as the hon. Member for Harwich and North Essex (Mr Jenkin) said a short while ago, even that description of the Bill is an insult to dog nutrition. So let us be clear: our invitation today to the Conservative partners in the coalition is to place reform of third party spending in elections clearly in the context of a cross-party consensus on political party funding and political party spending. We need to see a cap on donations to political parties—our leader has suggested a cap of £5,000—and we need to see meaningful reductions in spending limits by political parties in general elections. We need to stop this spending race, which sees spiralling sums of money spent on successive elections. No more dodgy dinners in Downing street; no more bankrolling of the Conservative party by a tiny number of wealthy City donors. The Electoral Commission itself has made it clear that reform of third party spending is needed, but not like this. Clause 27 has caused huge consternation in the third sector, because if passed into law, it would play a major part—along with the other clauses in part 2—in effectively gagging the third sector in election periods. The changes will have a chilling effect on our national debate in the year before the election. That cannot be right for any modern, 21st-century democracy.

--- Later in debate ---

[Angela Smith]

I will comment on the reduction to the thresholds presently. Suffice it to say at this moment that the Electoral Commission itself has suggested that the thresholds might even need raising, rather than lowering.

There is a real suspicion out there in the third sector that, unfortunately, many Conservatives would like to see charities pare down their role, shrink their campaigning brief and concentrate instead on welfare provision. That fear has already been borne out in this debate. There is nothing wrong with charities providing help and support for the sick, the young and the old, or for animals in distress—indeed, there is everything right about it—but they also need the freedom to campaign for the legislation and funding that are necessary to make the world a better place.

We have heard the views of the hon. Member for North East Somerset (Jacob Rees-Mogg) on the campaigning role of charities and voluntary organisations. The hon. Member for Dover (Charlie Elphicke) said recently that

“many charities need to renew their sense of mission, spending less time at conferences and more time valuing their volunteers. They should concentrate resources on helping people rather than campaigns, lobbying and administration”

and the hon. Member for Witham (Priti Patel)—

[Charlie Elphicke]

Will the hon. Lady give way on that point?

[Angela Smith]

Of course.

[Charlie Elphicke]

The hon. Lady will know that I was expressing my concern that the chief executive of Save the Children had had a pay rise of some 22% since 2010, while many of our constituents have been struggling to get by. It is right that we should ask the charities to refocus on their front-line mission and to help people rather than helping themselves.

[Angela Smith]

I believe that the issue of third sector chief executives’ pay is being used as a smokescreen to conceal a real attack on the sector’s legitimate role of holding elected representatives to account and campaigning for the changes in society that it believes need to take place.

[Charlie Elphicke]

There is a legitimate role for third sector organisations in making their case to elected representatives, as they have done, but some charities’ pay is out of control and their administrative expenses are too high. In those cases, not enough help is reaching the front line. I am concerned about the alleviation of poverty and about helping people in need on the front line, and it is really important that charities should have those values—

[The Temporary Chairman (Sir Edward Leigh)]

Order. I think we are starting to stray from the matter before us.

--- Later in debate ---

[Charlie Elphicke]

I was sent spontaneous e-mails on the Bill by a number of constituents. I believe that a number of Members of the House received such spontaneous e-mails, which of course had not been written by anyone else whatsoever. In response to those e-mails, I set out my position on charities and my concerns about pay in the boardroom and the amount spent on administration. The shadow Minister said that she is certain that people will be listening to the debate and will e-mail me right away to criticise me for the position I have taken, but many of the considered and detailed replies I received from those constituents who had e-mailed me with the so-called spontaneous e-mails said, “Actually, we see where you are coming from on charities and agree with your concerns. We think that they are important and that it is legitimate to raise them.” Far from what the shadow Minister thought the reaction would be, I had considerable support from people who, as she knows, would not naturally be supportive of me, or indeed my election.

[Angela Smith]

I feel the need to respond. I do not think that I said that third sector charities would be e-mailing the hon. Gentleman; I said that they would be listening very carefully to what he was saying in his interventions.

[Charlie Elphicke]

I thank the hon. Lady for that clarification. I think it is important that we represent our constituents. Following my direct responses to the 38 Degrees e-mails, many constituents replied and said that they saw that as a matter of great concern and that they agreed and had considerable sympathy with the position I had taken. I must say that I was surprised by that support. Having been forthright in my response, I did not expect to find much support from that particular quarter. I think that there is a message for Opposition Members to take away and consider, just as there is for Government Members. State-funded activists are engaged in direct lobbying of politicians and indirect lobbying of the public using taxpayers’ money, and I think that blurs the distinction between private and public action.

I also think that we all have a trust to uphold, in relation to the votes of supply and the impost we put on our constituents for the funding of Government and public money, to ensure that it is spent in a way that is targeted at particular social purposes and need. My concern is that if taxpayers’ money then finds its way back into arguing for more money to be spent on particular things, or indeed on the election of particular candidates or parties at an election, that is an abuse of the public trust that we are sent here to represent.