Recall of MPs Bill

Baroness Hayter of Kentish Town Excerpts

Tuesday 10th February 2015 Lords Chamber

Moved by

[Baroness Hayter of Kentish Town]

21: Clause 16, page 11, line 37, at end insert—
“( ) A donation in relation to a recall petition may only be made by a permissible donor.”

[Baroness Hayter of Kentish Town (Lab)]

My Lords, in moving Amendment 21, I will speak to Amendments 22 and 23 as well. Amendment 21, in my name and that of the noble Lord, Lord Kennedy of Southwark, is an extremely important amendment. Amendments 21 and 22 together would restrict donations to all campaigners in the recall process to our normal rules. Thus it would forbid non-permitted—essentially foreign—donors flooding a constituency with money that they would be banned from giving to political parties. These amendments are not an attempt to restrict the activity of non-accredited campaigners who could have an important role to play in a recall but to ensure that this group of campaigners does not have access to funds from individuals or companies not domiciled here, funds which, quite rightly, are barred to MPs and political parties. Amendment 21 would ensure that all donations to both accredited and non-accredited campaigners are allowed only from permissible donors as defined in Schedule 4 Part 1 of the Bill. Amendment 22 would ensure that donations to non-accredited campaigns are treated the same as for accredited campaigns and covered by PPERA.

In Committee the noble Lord, Lord Gardiner of Kimble, stated that all campaigners will be subject to rules on the content of their literature, including imprints, as well as rules on acting in concert, notional petition expenses and pre-election expenses. We welcome this but it leaves the key matter of donations unregulated. Let me paint a picture for noble Lords and indeed the Electoral Commission, which in a rather odd briefing to us yesterday said:

“It is not clear what … benefit there would be to control the source of donations over £500 to campaigners who are only allowed to spend up to £500 on a petition”.

It must have read the amendment wrong because Amendment 21 would control all donations, not just those over £500. I shall explain why this amendment is needed. As the Bill stands, 20 separate donations of £500 could be given to individuals or campaigns all from foreign donors completely under the radar, equating to the same amount that could be spent by the one accredited campaign of the MP concerned who, of course, can take no such money.

In Committee the Minister indicated that he did not want overburdensome regulations for smaller, non-accredited campaigns. While I appreciate this, I think the Government have gone too far the other way by allowing these campaigns to spend up to £500 without any restriction on the source of their funds, possibly all of which could come from non-permissible donations. Stopping money from abroad is important in itself, while reporting the source of donations should surely be expected of all campaigners during such an important democratic process that the Government have said they want to be open and transparent. I hope that the Government will therefore accept the amendment to rule out the possibility of donations which would not be allowed during a general election, or indeed at any other time, being suddenly allowed during this significant period—the petition to sack an MP. The Electoral Commission somehow has bought, without query, the Government’s assumption that a petition would not,

“attract significant amounts of spending”.

Neither it nor the Government seem concerned that perhaps that assumption is misguided. The lack of control over donations is a glaring omission from the Bill, which we seek to rectify.

Amendment 23 is about fairness. It would take big money out of the equation and have just two accredited campaigns—one in favour of recall and one against. It would create a level playing field for the two sides, allowing voters to hold their MP to account while allowing that MP to make the case for remaining their representative. The wording of the amendment, which would limit the number of accredited campaigns to two—a pro and an anti-recall—is modelled on legislation governing the Scottish referendum. In that case, which we are not seeking to repeat, an equal monetary amount was prescribed for each side. That we regard as entirely sensible and fair, and it should be replicated during a recall—not the giving of money to both sides but ensuring an equality of arms between them so that they can each make their case: one for a by-election and one against. There are just two sides to the argument and they should be equally matched. There can be no case, on the grounds of fairness, against that.

Without Amendment 23 there is no limit on the number of pro-recall accredited campaigns, each of which could spend £10,000, against the MP’s single £10,000, so that one side could outspend the other five or even 10 times over. For example, an MP in a three or four-way marginal could face the three or more parties defeated at the previous election, each of them able to spend £10,000 to force a by-election, and that is before any local or national group decided to take an interest in the matter. We surely have to regulate against this, otherwise the reasons behind a recall being triggered will be thrown out of the window and the issue will become one of asking, “Do we want a by-election?”. If it is a marginal seat or if the Government have a majority of one, the answer will be driven by that and not by the behaviour of the incumbent MP. Therefore, voters will not be signing to hold their representative to account for his or her actions but it will be a referendum on the popularity of the Government, the surge of support for a new, emergent party, a campaign on fracking or whatever. Money and broader politics will count, not the record of the MP concerned.

A recall petition will have been triggered by a single event—say, a sentence of imprisonment or 10 days’ suspension from the House. However, multiple groups could then run individual campaigns on grounds entirely different from the reasons behind the recall. These could be the voting record or beliefs of the MP, or the availability of a national platform to launch a campaign on some topical issue—Europe comes to mind, should a promised referendum not materialise. Without a limit on the pro-by-election campaign, myriad groups could make their case, each spending £10,000 on the back of their MP’s misbehaviour.

I note that the Electoral Commission, in its briefing, does not feel that it,

“should be given the responsibility of registering campaigners at an event that is confined to only one constituency”.

I do not think that it is for the commission to decide whether it is up to it, but if Parliament accepts the fairness of this amendment then either the Electoral Commission should do this to ensure that our politics are kept clean of big money or we can ask some other body to do so.

We support the recall process, as it follows a finding about an MP’s behaviour and gives the local electorate the chance to decide whether, in the light of that conduct, they still want the MP to be their representative in Parliament. However, that process must be fair. Our amendment would introduce a crucial element of fairness, an equality of arms and a top limit on the total expenditure permitted in the constituency during this process. It would also make sure that we had control over foreign money coming in during the recall process. I beg to move.

[Lord Hughes of Woodside (Lab)]

My Lords, I support my noble friend’s amendment. At an early stage this evening, the noble Lord, Lord Gardiner, said that he thought and hoped that the recall process would be effective and be conducted politely in a civilised manner. I wish that that were the case. I think that what divides us across the Chamber throughout this Bill is not so much the principle—I think we all agree with the principle—but how it will be approached. Some people may think there has been exaggeration of how bodies coming from outside the constituency to fight against the MP are calling for recall on issues unconnected with his or her particular misdemeanour; the fact is that that is what happens.

I will refer to something that happened a long time ago about how foreign Governments and parties can become involved in a British political event. When I was a councillor in the city of Aberdeen, I persuaded the town council to have a contract compliance clause in which no South African goods would be accepted. It was purely symbolic. If you bought a bottle of sherry a year, you were doing very well. It was an issue of principle. That clause went through. Unbeknown to me, the local shipyard had a contract to build two trawlers for a South African company. The next thing that happened was that on the scene came an organisation called the South Africa Foundation. I should say that the South Africa Foundation of the 1960s is quite different from any South African foundations today, which serve good, charitable purposes, so let there be no misunderstanding. At that time, the foundation said that unless the council rescinded that decision, it would have the contract cancelled. Imagine what the local press thought of that. I went down to the shipyard and spoke to about 300 workers. They said that they were going to build the ships. I said, “I didn’t ask you not to build the ships”. They said, “But it will stop the contract”. I said that the South African company was bluffing, and that, in any event, the South Africa Foundation was simply a front organisation for the South African Government. I did not deny that the South Africa Foundation and the South African Government had reason to come and challenge the views of Aberdeen. That was fair enough; their interests were at stake. But that was quite a different matter from trying to unseat an MP in a competition based on something else.

In the event, although I declared the South Africa Foundation a front for the South African Government, and it threatened to sue—I must say, that gave me some sleepless nights—it abandoned that when I pointed out that the organisation had on its letter heading South African Railways and Harbours Board, South Africa Marine, Eskom and all the South African industries which, in those days, were publicly owned and called parastatals. So that was dropped. That was simply one example of how they could come in. Had they decided to come in, with a lot of money, to unseat an MP—I think they would have done—that could distort the whole purpose of this recall Bill.

Although I share the views of many in this House who have declared that the Bill is unworkable and inflexible, nevertheless, I accept the general principle that MPs should not be totally free to do what they like. That has never been my position, nor is it, I believe, the position of Members on this side of the House. So, on the issue of funding, if there were strict control of funding in the general election, there would have to be at least the same limit on funding and a recall petition. It is straightforward and simple. I cannot believe that the Government would oppose this amendment in any way, as it is perfectly sensible and reasonable. So I hope that your Lordships will not think that those of us who oppose the Bill are taking rather fanciful, overblown or overdramatic views of the situation. Having been at the coalface for 27 years, I know how different bodies can go at things.

I want to say something that has nothing whatever to do with the Bill. I see in the press that the coalition is considering devolving abortion matters to the Scottish Parliament. I beg the Government not to do so. It is the most divisive issue of all in Scotland. What we need in this case is unity and some sense of proportion. However, perhaps the Minister will draw that to the attention of his colleague, the Chief Secretary to the Treasury.

Having got that off my chest, what we want to do—and we are all in favour of it—is to strengthen the House of Commons and Members of Parliament. We must try to regain—I was going to say the high regard that people had for MPs but I do not think people ever had a high regard for MPs. I think there was a misunderstanding. I think that MPs had some respect, which is a different matter altogether. We are reaching a stage in this Bill where, if we do not put this right, it will be a shambles. I hope that the Government accept this amendment.

--- Later in debate ---

[Lord Wallace of Saltaire]

I understand that. It is a one-horse race, of course. The other does not have a horse at all, so to speak. The Government are not prepared to designate a single lead campaigner on either side. We are not persuaded that an overall limit is practical or measurable, but that is one of the things we will come to in Amendment 24. There are several issues in this, as I well understand, including the question of foreign non-permissible donations, which we will come to in Amendment 24.

[Baroness Hayter of Kentish Town]

My Lords, it is interesting that it was the Minister himself who mentioned the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill. Not everyone was here for that, but once charities go into a single campaign they have to take responsibility for the expenditure of others; they have to nominate a lead, and the expenditure of a small charity goes against the upper limit on what a big charity can spend. The Government were very happy to do that but somehow this is different.

This is really a nonsense. It is not about the MP having lots of people on their side. If it was a Labour person who had been kept out of the House for 10 days, the Conservatives, the Lib Dems, UKIP and the Greens would all be voting for a by-election. Each could spend £10,000 and the Minister is clearly content with that.

I am even more unhappy about the Minister’s complete acceptance that foreign money up to £500 can come in, not controlled in the way that we control donations —very sensibly and rightly—to the political process from those who have no skin in the game as far as our elections are concerned. We will have non-doms, tax evaders, anyone—all giving up to £500, and the Government are quite content with that. It is for that reason that I ask the Government to go through the Lobbies and vote for the continuation of this Bill, which will allow foreign money up to £500 to be given. I beg to test the opinion of the House so that people outside can see that that is what the Government are content with.

--- Later in debate ---

[Lord Grocott]

I would have preferred the amendment of my noble friend Lord Soley, but this one is eminently sensible. The idea of a review after six years appeals to me. I put in an early bid to be a member of the reviewing committee, so that I could have the great pleasure of pointing out that the whole operation really was a waste of time, and being able to employ my favourite phrase: “I told you so”.

[Baroness Hayter of Kentish Town]

My Lords, I am now trying to think what would tempt the noble Lord, Lord Rennard, to vote with us. It does not work when I say the same thing as our Back-Benchers; it does not work when I say the same as the Government. I am not sure that I am ever going to get him into our voting Lobby.

[Lord Rennard]

It presumably works when I agree with the noble Baroness’s arguments. Sadly, I may not on this amendment.

[Baroness Hayter of Kentish Town]

There may have been others when the noble Lord did.

As we said earlier, the idea of reviewing the Bill—in that case it was to see how it fitted with the cases taken to the electoral court—seems entirely sensible. It is a new part of our democratic structure and one that could impact both on how MPs see their role and how constituents view their ability to hold MPs to account. While the Act is new, we will need to see whether it achieves the aims set for it. We must also review whether, as we fear and as the House has heard, big money could enter the equation; or, failing that, whether local electors who participated in a recall feel empowered by it or cheated by it, or that it was not what they expected. Anyway, we think that all Bills should be subject to some post-legislative scrutiny to ensure that they solve whatever they were set up to meet, and we support a review once the process has been used.

What surprises me is that the noble Lords, Lord Norton and Lord Tyler, who is not in his place, should want a review in the hands of a committee with an in-built Commons majority. As my noble friend Lord Kennedy said just now, we foresee a bigger role for an independent organisation, the Electoral Commission, in reviewing the workings of the Act, should it ever be used. Therefore, I am particularly surprised that an eminent academic, the noble Lord, Lord Norton of Louth, does not want a more vigorous and independent look at the operation of the Act. I am equally surprised that the noble Lord, Lord Tyler, who in Committee argued for an independent trigger out of the hands of MPs, now wants a review conducted by a Committee with a majority of MPs. Sadly, he is not here to explain himself.

[Baroness Maddock (LD)]

Can I please explain why my noble friend is not here? He has not been well of late, and he was advised that he should not stay late tonight.

[Baroness Hayter of Kentish Town]

I thank the noble Baroness for that. In return, I send our good wishes for his rapid return—not necessarily to voting, perhaps, as we never approve of the way in which he votes, but we like to hear his voice. He has our good wishes for a speedy recovery.

The principle of reviewing this new part of our democratic institution, which could be a significant part, is right. Therefore, I hope that the Minister will say something positive—although he never says anything positive to me—about the possibility of a proper review of this measure, once it has been put into use.

[Lord Gardiner of Kimble]

My Lords, the Government are fully persuaded of the merits of post-legislative scrutiny as a general principle. There are frequently valuable lessons to be learnt for the future, and the Government are always happy to listen to and consider recommendations arising from such reviews.

As noble Lords have said, the Government have included review clauses in several of their Acts this Parliament, including ones affecting constitutional or electoral matters. However, the Government have some reservations in this case. My noble friend’s amendment commits to a review after five years. That is a reasonable period in some respects, but it is of course by no means certain that there will have been a recall petition by that point. In fact, I think that the noble Lord, Lord Howarth, was getting very close to that. A review of an Act which has not had the opportunity to operate as intended would be severely limited in its usefulness. It would be unable to consider the operation of the recall process, and its conclusions would have to be to some extent hypothetical.

Recall does not have to be regularly used for the power to be a good addition to democracy. Indeed, as I have said before—and I hope noble Lords will understand my good intent—the Government fervently hope that no petition is triggered because Members’ conduct is of the highest standard expected. I am sure that noble Lords would not suggest that Parliament’s disciplinary powers should lapse simply because Members’ behaviour does not cause them to be used.

It is, of course, open to Parliament and to the Government of the day to review legislation on their own initiative, without a statutory requirement to do so. It would be entirely appropriate for a parliamentary committee to conduct its own post-legislative scrutiny at such a point as it felt that it would be useful to do so. I am sure that the Government of the day would be more than happy to reflect on any considerations that might be brought forward in that case.

I hope that we will not have a recall because the standards of Members of Parliament are very high, so will not need a review. The Government are not happy about my noble friend’s amendment and we ask him to withdraw it, because in this case we are not convinced that it would be of the use that we know he intends. If there has not been a trigger, it would not be the sort of valuable review that we would like were we to have reviews. I hope that he feels able to withdraw his amendment.