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

Baroness Royall of Blaisdon Excerpts

Monday 16th December 2013 Lords Chamber

[Baroness Royall of Blaisdon (Lab)]

My Lords, I begin by thanking my noble friends Lord Rooker and Lady Blood. Using a deep understanding of Northern Ireland, they have demonstrated why this badly drafted and poorly thought-through Bill has the potential to be so damaging there. My noble friend Lady Blood has huge experience in campaigning in Northern Ireland as part of a grass-roots movement and I pay tribute to her work as chair of the integrated schools movement—a movement which I fully support, does excellent work and must never be muzzled in any shape or form. I very much hope that the Government will heed her advice.

I am sure that I will not be the last in the Chamber today to pass on my sincere thanks to the Commission on Civil Society and Democratic Engagement, specifically the noble and right reverend Lord, Lord Harries, my noble friend Lady Mallalieu and the other commissioners. By seeking evidence from across the UK and by formulating proposals and testing them against the needs of charities and NGOs, they have highlighted how remiss the Government have been in failing to do any of that. We are told that today is to be an extension of the consultation. However, our constitutional role in this House is to scrutinise the Government and revise their proposals. Committee stage should enable noble Lords to debate government proposals and then to table the necessary amendments for Report. Instead, we are being treated as a focus group for the Government to gauge how little they can get away with changing. I therefore ask the noble and learned Lord to give us a cast-iron assurance that, at the latest, we will see any government amendments which might be forthcoming after Committee by the Tuesday when the House returns following the Christmas Recess. That means that the amendments would have to be tabled on the Monday and published on the Tuesday. It is only right that noble Lords, especially those who are engaged with the commission, have an opportunity to look at the amendments properly and to table their own amendments at Report.

As the noble Lord, Lord Cormack, said, on Friday night we had a terrible reminder of how fragile the peace in Northern Ireland is: a large explosive device was left in a busy area of Belfast, at a time when many were out enjoying themselves with friends or colleagues ahead of Christmas. Despite the worrying scenes on Friday, however, a huge amount of progress has been made, and it must not be jeopardised in any way. From the beginning of the Troubles at the start of the 1960s until the Good Friday Agreement, 1,800 people lost their lives in Northern Ireland. One in five people had a family member killed or wounded in the fighting. So we must support the people who have created, and are attempting to sustain, the delicate balance there in the wake of the Good Friday Agreement and, of course, earlier agreements.

As the commission report says:

“NGOs and charities in Northern Ireland are frequently working on issues that relate to ensuring the full implementation of the Good Friday Agreement”.

I was particularly struck by the evidence relating to equality issues and was interested to hear what my noble friend Lady Lister said about women’s voices in Northern Ireland.

As my noble friend Lord Rooker said, the voluntary sector in Northern Ireland has made a huge contribution to nurturing understanding between the two communities there, especially in disadvantaged areas. In a post-conflict society, freedom of expression cannot be taken for granted. Non-governmental organisations carry out roles that do not necessarily come easily to governments in such circumstances. The evidence gathered and presented by the commission on civil society provides us with a vivid example of this in an extraordinarily wide-ranging and inclusive campaign for a Bill of Rights for Northern Ireland.

As my noble friend Lady Mallalieu mentioned, more than 180 community groups have come together as the Human Rights Consortium, including human rights organisations and disability charities. Strikingly, it also contains republican and loyalist ex-prisoners and the injured police officers’ association. The consortium’s campaign is driven by the belief that, in a society emerging from a conflict that has proved to be so scarring, a Bill of Rights can play a vital role in building confidence in a new legal framework. In its own words:

“While there are rights, the European Convention on Human Rights, this is special for our country because here we have a country where I have been brought up to be British, and that was just the way it was, and my neighbour across the street was brought up to think they belonged to another country, but using rights we can work together to form a new contract with the government of our country, which is Northern Ireland. That is why it is so important to people, particularly in working class communities, but that benefits the whole community right across unionist and nationalist and that is why it is so important”.

The consortium’s campaign shows how the Government’s insistence on bringing forward proposals which expand the definition of regulated activity and expand the definition of what has to be counted toward that expenditure while reducing the thresholds for registration, has muddied the waters.

In 2009, representatives from the consortium appeared before the Northern Ireland Affairs Committee. In that appearance, they had the opportunity to present and explain some important polling that they had carried out. It showed 75% public support for a strong and inclusive Bill of Rights. The sample for the poll was weighted so that different communities in Northern Ireland were represented, and the consortium was able to tell the committee that the breakdown of its poll showed high levels of support for a Bill of Rights across different religious communities.

As the Bill is currently drafted, this polling, designed to pressure the Government into action, appears to be a qualifying expense. The Government wish to lower the thresholds of registration in Northern Ireland to a very low level at the same time as widening those definitions. However, there is not a single reason why the thresholds as contained within the existing PPERA legislation could be said to be too high.

Noble Lords on the government Benches may have spotted that much of the campaign that the consortium ran took place under the previous Government, and they will be wondering about my enthusiasm for protecting its rights. But that is what being in government is all about. The huge majority of protest is aimed at whoever is in government, because civil society, NGOs and charities all know that if they want a change of policy they will have to convince whoever is in power. Civil society can be awkward for a Government to deal with. It needs to be, because in a democratic society its role is to scrutinise and to hold to account. It seems as though the Government have not fully understood that, and that is the central problem with the Bill.

I would be grateful if, when the Minister responds, he could outline the detailed changes that will be made to protect the rights of civil society in Northern Ireland and elsewhere in the United Kingdom. I would be particularly grateful for the Government's response to the recommendation from the commission that:

“In advance of introducing any new legislation, Government should”—

this is in relation to Northern Ireland—

“Undertake full, in-depth and considered consultation with a range of organisations in Northern Ireland and with the Stormont Parliament itself to ensure that civil society's contribution within the unique political environment of post-conflict recovery is not jeopardised. In particular, ways should be found to ensure that pre-election regulation does not inhibit progress in towards full implementation of the Good Friday Agreement”.

I trust that we will have several assurances from the Minister in response to this short debate.

[The Advocate-General for Scotland (Lord Wallace of Tankerness) (LD)]

My Lords, as this is the first of no doubt many occasions on which I shall speak in this debate, I should put on record that I am a member of the board of the Saint Magnus International Festival and a member of the Kirk session of St Magnus Cathedral congregation in Kirkwall, both of which are charities registered with the Office of the Scottish Charity Regulator.

I am grateful to the noble Lord, Lord Rooker, for introducing this debate and Committee sitting. With the indulgence of the House—and perhaps responding to some of the things that the noble Baroness, Lady Royall, said—perhaps I may first update the House on the consultations that the Government have had, and benefited from, over the past six weeks. I should also like to indicate how grateful we are to the many campaigning groups, charities and others—and Members of your Lordships' House—who have taken the time to discuss these matters.

My noble friend Lord Wallace of Saltaire has written twice to noble Lords offering discussions—and I thank the noble Lord, Lord Rooker, for his expression of good wishes to my noble friend Lord Wallace. I assure the noble Lord that no one wishes my noble friend a speedier recovery than I do. My noble friend texted when I was on my way down south from Scotland today to say that he was home. Somewhat alarmingly, he also said that he might be watching some of our proceedings on the parliamentary TV channel. I asked him to check his blood pressure levels before doing so.

I know that my noble friend has valued the meetings that have taken place, as have I. There have been meetings with nearly 50 organisations to discuss how the Bill might affect them, and there has been correspondence with many more. Organisations which we have spoken to reflect the diversity of civil society in the United Kingdom, including large charities, campaigning organisations, umbrella organisations and specialist organisations.

I wish particularly to express my thanks—the noble Baroness said that it would not be the last time that that would be the case in these debates—to the noble and right reverend Lord, Lord Harries of Pentregarth, the noble Baroness, Lady Mallalieu, and other members of the Commission on Civil Society and Democratic Engagement for its comprehensive second report on the Bill. Campaigning groups have made numerous suggestions about changes that might be made to the legislation, many of which are reflected in the amendments that have been tabled. We have been considering these suggestions carefully. I do not accept that this House is a focus group; it is important that this House should scrutinise government legislation. We thought it equally important, in framing the amendments we would bring forward, to have the benefit of full and thorough exchanges on the amendments that have been tabled both today and on Wednesday.

The noble Baroness has asked for a guarantee that the amendments will be available on the first sitting day after the Recess. While it is one that I would love to give, I am sure she will understand that I cannot do that with certainty, although we aspire to it. At any other time of the year it might be easier to do so, but as the Committee will be aware, quite frankly it can be difficult at this time of year to make sure that all the people concerned are in the right place. However, I take the important point that those who have taken a particular interest in this Bill are given proper notice of the amendments that the Government are to propose before the House comes to debate the Bill at Report stage.

One area where we have heard consistently that more clarity is needed is over the guidance as to which activity might or might not be caught by the electoral test, and I may be able to say something about that in the course of replying to the specific points raised by the amendment moved by the noble Lord, Lord Rooker. 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. Campaigners require clear guidance to support them and help them understand the revised regime, and I am reassured that the commission recognises this too. It makes clear in its briefing notes that it is committed to working with the United Kingdom’s charity regulators to produce clear and reliable guidance that will help charities to understand how to comply with both electoral law and charity law, and I say that without pre-empting subsequent debates that we will have on charities. Also, I would say that the sooner this guidance can be produced in draft, the better. As a Government we are open to working across the House and with the electoral and charity commissions to give campaigners the guidance they need. It may be that we will hear in these debates in Committee how best the commissions can support campaigners in a thorough and timely way.

Charities and campaigners have also expressed fears that low-level campaigning and expenditure will be regulated as a result of this Bill, and that small organisations will face a disproportionate reporting and compliance burden. Our belief is that there should be greater clarity about who is campaigning for the electoral success of parties or candidates, but we do not want small campaigners to be dissuaded from taking part by the fear of having onerous burdens placed upon them. Therefore in line with the commitment made by my noble friend Lord Wallace of Saltaire to the House on 5 November, the Government will bring forward on Report amendments to increase the registration thresholds in England, Scotland, Wales and Northern Ireland. As I have said, we will listen to the debates today, but the Government believe that the substantial increase in the threshold currently set out in the Bill is appropriate.

Finally, as a preliminary, the Government are committed to bringing more transparency to campaigning by third parties before the 2015 general election, but having listened to the views of campaigners over recent weeks, I seek to reassure noble Lords that we agree with those who think that the provisions of Part 2 should be subject to review after the 2015 UK parliamentary general election. That election will provide the earliest opportunity to understand the effectiveness of the provisions of Part 2. The Government therefore commit to laying this review before Parliament, and an amendment to this effect will be introduced at Report stage. As I have said, beyond that I do not wish to pre-empt the debates today and on Wednesday. Of course, the Government wish to hear views from across the House on the amendments which have been tabled, and I hope that these points and a short statement will assure your Lordships that while the Government are absolutely committed to the increased transparency that Part 2 will bring, we have been listening and will continue to listen to those who have strong views on this legislation.

I turn now specifically to the amendment moved by the noble Lord, Lord Rooker. As we have heard, it would exclude Northern Ireland from the provisions contained in Part 2. That exemption would stand for as long as there is a statutory Executive based on the Good Friday agreement, which is in place. I readily accept that there is a different political structure in Northern Ireland, where different parties compete for elections, than is the situation in Great Britain. It is clear that there is a particular situation in Northern Ireland and it is important that the legislation should take account of that.

I have been particularly struck by the contributions that have stressed the importance of civil society, not just across the United Kingdom but particularly in Northern Ireland, and the role of community groups in developing policies. I think the noble Lord, Lord Rooker, and the noble Baroness, Lady Blood, said that, very often, in the years when there was a lack of political leadership, community groups were very important in coming together and giving leadership on specific policy issues. We do not in any way wish to negate the impact that they have had or the work that they do. The Government recognise that and I hope that I can reassure the House by saying that we do not believe that that important work would in any way be prejudiced or jeopardised by the provisions in the Bill.

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[Lord Wallace of Tankerness]

In all these hypotheticals, you hesitate, but I cannot see how supporting what must essentially be a medical judgment by a group to support a particular centre over another—it is not supporting a particular candidate or party over another—would constitute trying to promote a political party. It might be promoting a particular medical centre, but that is not the same as a political party.

[Baroness Royall of Blaisdon]

My Lords, I accept that the issue relating to APPGs is difficult, but I am sure that there is—forgive my ignorance—an anti-smoking APPG that may well be wholly in favour of standardised packaging for cigarettes. We know that we all agree on this measure, at the moment, but if, six months before the election, this had not been resolved and the APPG still seemed to support the introduction of standardised packaging on cigarettes—which is something that the coalition used to be against and we were in favour of—would that be caught by the new law?

[Lord Wallace of Tankerness]

I find it difficult to see how an all-party group, supported by all parties, would fall foul of something, because by its very nature that would be difficult. The noble Baroness raises a point that was at the core of the points made by my noble friend Lord Tyler about when there is a change in a particular policy. This brings us to an important issue about what should be in the Bill and what should be left to guidance. This point was also made by the noble and learned Lord, Lord Hardie, who asked about groups changing their policy position in the middle of the controlled period.

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[Lord Best (CB)]

My Lords, I shall speak to Amendment 163A, another in this rather large group. I declare my interest as a member of the advisory board of the National Council of Voluntary Organisations, the NCVO, which is a key organisation in seeking amendments to the Bill and supplementing the brilliant work of the civil society commission chaired by the noble and right reverend Lord, Lord Harries of Pentregarth. I am grateful to him for his support for this amendment, and to the NCVO for its briefing on this amendment.

This amendment joins so many others in seeking to preserve the freedoms of not-for-profit organisations seeking to influence government and decision-makers. In the case of this amendment the issue is the new list of activities, the costs of which count as qualifying expenses and lead to regulation. The list now includes public rallies or other public meetings where expenses include costs in connection with the attendance of persons at the event, the hire of premises and provision of goods, services and facilities. So this is about all costs associated with freedom of association at rallies and other public meetings. A potential problem here is acknowledged by the Government’s human rights memorandum, which noted that,

“more things (such as for example, costs associated with the organisation of rallies and events) will count towards spending limits and require control. This engages Article 10 and 11”.

The Joint Committee on Human Rights has expressed concern about the possible impact of the broadened list of activities on the freedom of association. The noble Baroness, Lady Lister, has just referred to this. A number of organisations, notably those interested in disability and welfare reform issues, have flagged the concern that the high costs associated with organising a rally of some form would have a major impact on campaigning activity throughout the rest of a regulated period.

Perhaps I could share three examples of organisations and their activities that would be covered by the new rules and lead to disproportionately onerous bureaucracy and burdens, which could effectively prevent those organisations campaigning in ways that they have done in the past.

The first is the case of the Countryside Alliance’s opposition to the hunting ban in 2001 and 2005—an example that is known to a number of your Lordships. In the run-up to the 2001 and 2005 general elections, the alliance mobilised its supporters and the general public against the hunting ban—activities which in total required a pretty high level of expenditure, including demonstrations and rallies against the hunting ban, press conferences to promote the event, transport costs for those attending the events, and producing and distributing leaflets to promote the events. The Countryside Alliance is not linked to any one political party. However, because the issue of hunting can be seen as highly partisan, with the hunting ban more associated with the Labour Party, all the costs incurred in these events would have counted towards the alliance’s expenditure. Had the Political Parties, Elections and Referendums Act 2000 been amended as the Bill proposes at the time the hunting Bill made its way through Parliament, the ability of organisations such as the alliance to oppose the proposed ban and organise marches and rallies would have been severely curtailed.

Secondly, in the run up to the Copenhagen climate change summit in 2009 and the UK general election in 2010, the organisations in the Stop Climate Chaos coalition worked on a range of events, including outdoor rallies; the Wave, a march through London attended by 50,000 supporters; and schools’ conferences held with schools from across England to talk about climate change, with MPs invited to a panel debate. Under the new rules proposed by the Bill, even if lower spending limits are not pursued, it is likely that the various activities carried out by the coalition would have exceeded the maximum amount allowed, forcing the coalition to stop its campaigning.

Thirdly and finally, the Women’s Institute’s Great Food Debate involved a programme of work on food security and was launched at an event in York in December 2012 with a report on food security. The event was free, open to the public and included a panel at which the Environment Secretary, Owen Paterson MP, gave a keynote speech. Members of the WI and members of the public attended the launch and debate, with another in Cardiff the following month. The Great Food Debate is designed to explore the concept of pressure on the food system and provide an opportunity to engage with the public. The National Federation of Women’s Institutes encourages WIs all over the country to replicate its national work by hosting their own local and regional Great Food Debates. All this generated significant media coverage, including local and regional coverage. The Great Food Debate is certainly not supportive of any particular party but the media reporting of the events placed the debates and work programme in a political context, as exemplified by headlines such as the following in the Daily Mail:

“Put cooking back on the national curriculum to tackle obesity timebomb and stop pupils wasting food, urges WI”.

The Daily Telegraph read:

“TV cooks should give us recipes for leftovers to cut waste, says Minister”,

and:

“Teach all children to cook in schools, says Women’s Institute”.

In addition, the Environment Secretary used the platform as an opportunity to call for further consideration by the public of GM and agritechnology. If the Bill is passed and these events were held in the 12 months before one of the elections covered by it, the related costs would take the National Federation of Women’s Institutes over the registration threshold, with all the consequences that that would imply. All local WIs and federations would have to register as third-party campaigners with the Electoral Commission because the NFWI would have spent more than the registration threshold in creating the materials to help members hold their own debates. Federations and WIs in this scenario would then have to take on all the regulatory burdens associated with that.

It is good to hear that the Government will be bringing forward changes that will increase substantially the cash thresholds for registration. Amendment 163A helps that process by taking out one element that could disproportionately affect the total spending by voluntary bodies in this grey area of non-partisan campaigning. It diminishes the unintended chilling effect of the Bill, which otherwise seems likely directly to deter voluntary bodies from organising the free association of people at rallies and public events, and indirectly to reduce engagement of the sector in important campaigning activity.

[Baroness Royall of Blaisdon]

My Lords, I am grateful to noble Lords for a giving such a thorough explanation of why the Government need to take away Schedule 3 and think again. The many increases in activities that count towards qualifying expenses in this part of the Bill account for a great deal of its unworkability, and for the concerns and fears that have been raised in civil society. My noble friend Lady Lister rightly spoke of the cumulative effect of the various measures in the Bill, but I suggest that this schedule has a profound effect on people’s views of it.

The Minister, the noble and learned Lord, Lord Wallace, said that volunteers would not be covered in the Bill, but that is not enough. It is clear that the main problem with Schedule 3 is the inclusion of staff costs as a qualifying expense. Political parties are not subject to this requirement and it is therefore unclear why the Government believe that charities and NGOs should be. It is worth looking at the original document from the Electoral Commission that the Government claim as the inspiration for some of the Bill. It said, as regards counting the staff time of political parties:

“Bringing directly employed staff costs within the scope of the spending controls would have significant implications, which would need to be considered before the change could be implemented. It would impose new administrative burdens on parties, and the detail of what spending is covered would need to be carefully considered and defined”.

The report continued:

“It could take up a significant part of the larger parties’ campaign spending under the current spending limits and the spending limits would therefore need to be re-visited”.

If this is the case for political parties, the same would apply to charities and NGOs. Indeed, they have presented a great deal of evidence about the burden that would be placed on them. Amnesty International has pointed out that during an election period it produces manifestos on human rights, organises hustings, undertakes pledge-card activity and co-ordinates media activities. These activities could mean that the new spending thresholds would be met, and therefore staff time would have to meet new reporting requirements that would seriously draw on resources—a reminder that with this Bill it is often the new provisions taken together that would work to stifle democratic expression. That is what the larger organisations fear. The smaller ones, however, would struggle to an even greater extent to meet the onerous reporting requirements.

The NCVO has presented a case study that amply demonstrates this. If, for instance, a small disability charity campaigning on welfare reform employs an additional member of staff to run local campaigns in the run-up to the election, the charity must account for the person’s time and monitor which activities undertaken by local groups could amount to controlled expenditure. Even if a simple approach were taken by looking at a yearly salary, this could immediately bring the organisation over the threshold—for example, one public affairs officer on £30,000 per year. Surely the Government, who talk so often and so loudly about reducing red tape, are not prepared to place such a regulatory burden on charities. The noble and right reverend Lord, Lord Harries, cited the example of the RSPB, which contends that the impact assessment prepared for Part 2 understates the extent to which it will mean that charities and NGOs will have to spend money on administration rather than on their core work. The RSPB states:

“This would siphon money away from conservation work and amount to an unnecessarily onerous regulatory burden: more than the £0–800 per organisation for implementation estimated in the Impact Assessment”.

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[Lord Gardiner of Kimble]

I suspect that I may want to avail myself of the noble Lord’s very kind suggestion. In order to get the intricacies of this right, I probably need to look at it. It is important that we get this right throughout the process.

Perhaps I should say to the noble Lord, Lord Aberdare, that I think that my noble and learned friend has made it clear that the Government fully intend there to be a review as part of the amendments that will come through on Report. There will be a review after the general election in 2015.

This group of amendments reflects the fact that the Government want to get this absolutely right. Points have been made on all sides of the Committee which the Government will return to on Report. Given the hour, I hope that noble Lords will forgive me that if there are any outstanding points I find in Hansard, I will respond to them.

[Baroness Royall of Blaisdon]

My Lords, perhaps I may ask for a point of clarification. In responding to the questions about the Countryside Alliance and the hunting Bill, I think the noble Lord talked about being very careful not to promote the electoral prospects of a party. However, Clause 26 talks about “prejudicing” the electoral prospects of other parties or candidates. That relates to the Countryside Alliance and the ban on hunting, but I would also cite the example of the demonstrations held against the Iraq war. They could have been seen to be prejudicial to the electoral prospects of a certain party, in that case my own. I would be grateful if the noble Lord could clarify that either this evening or on a future occasion, because it is a terribly important point.

[Lord Gardiner of Kimble]

I will want to reflect precisely on that but will just reaffirm that the Countryside Alliance was punctilious because it was an apolitical organisation. The person who chairs it is the Member of Parliament for Vauxhall, and I very much doubt that there was any suggestion at all that she was in any way going to be subject, shall we say, to an attack for an anti-Labour stance. I will reflect on the two points that the noble Baroness has made.

In conclusion, I will respond to any outstanding points, but at this juncture, I wonder whether the noble and learned Lord might consider—