Transparency of Donations and Loans etc. (Northern Ireland Political Parties) Order 2018

Baroness Suttie Excerpts

Tuesday 27th February 2018 Lords Chamber

Moved by

[Baroness Suttie]

At end insert “but this House regrets that the draft Order does not provide for transparency of political donations in Northern Ireland dating back to 1 January 2014 as provided for in the Northern Ireland (Miscellaneous Provisions) Act 2014, thereby preventing proper scrutiny of donations to political parties in Northern Ireland during the European Union referendum campaign.”

[Baroness Suttie (LD)]

My Lords, I would like to thank the Minister for that very detailed and at times complex explanation. I would like to make it clear that we welcome this order as a first and long overdue step towards greater transparency of donations and loans given to political parties in Northern Ireland. As the Minister has said, subject to the order coming into force, for the first time the Electoral Commission will be allowed to publish information about loans and donations given to Northern Ireland political parties dating back to July 2017. This step towards bringing Northern Ireland in line with the transparency provisions in the rest of the United Kingdom is to be welcomed. However, it is deeply to be regretted that the order is not backdated to 2014, as the Northern Ireland (Miscellaneous Provisions) Act 2014 allowed. That is why we have tabled this amendment today.

The 2014 Act anticipated that the names of donors to political parties in Northern Ireland could be made public dating from January 2014. We have to ask two fundamental questions. Why has it taken so long to bring forward these proposals? Why have the Government chosen to backdate them to July 2017, rather than January 2014?

I should pay tribute at this point to the former MP for Belfast East, Naomi Long, now leader of the Alliance Party, for her tireless work in campaigning for greater transparency of political funding in Northern Ireland. It was her amendment to the 2014 Act that has allowed full transparency dating back to January 2014. It is also worth noting that in response to the tabling of this order, the Electoral Commission, in its letter of last December to the then Secretary of State for Northern Ireland, James Brokenshire, recommended that another order be brought forward to allow for full transparency dating back to January 2014, as the 2014 Act had anticipated. The Electoral Commission is already in possession of all of the relevant data to allow this.

That this order has not been backdated to 2014 is clearly of particular importance. During the three-year period in question—January 2014 to July 2017— there have been two general elections and the EU referendum campaign. It is also important because it has since come to light that a very significant donation of £425,000 was given to one political party in Northern Ireland during that referendum campaign, and it has been said that much of that donation was spent elsewhere in the United Kingdom during the campaign.

Public confidence in political parties and political campaigns is worryingly low, at a time when there are accusations of foreign interference in elections throughout the world and of dirty money in politics. Transparency is therefore more vital than ever in providing voters with trust in the democratic process.

When the Political Parties, Elections and Referendums Act was introduced in 2000, there was general acceptance that Northern Ireland should be exempted because of genuine concerns about the security and safety of individuals and potential risks to the safety of donors if their names were put in the public domain. But the 2014 Act provided for Northern Ireland to be brought more in line with the provisions for the rest of the United Kingdom, subject to the laying of the order before us today. The provision ensured that, at a point determined by the Secretary of State, any donation of more than £7,500 from a single source to a political party could be subject to publication from January 2014. It has therefore been clear to political parties in Northern Ireland since that Act that donations made after 2014 could be made public. The Electoral Commission also made this very clear in its letter to the Secretary of State for Northern Ireland in December last year.

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[Lord Duncan of Springbank]

I thank the noble Lord, Lord Kilclooney, for his intervention. Again, I stress this point. As a frequent visitor to North America, I have discovered many people who invoke their affinity to the homeland. I have met many Scots—who may indeed be fourth or fifth-generation Scots—who proudly wear their tartan as frequently as they possibly can. I do not fault that; I celebrate it. That is true for citizens of whichever homeland might be in question.

However, in terms of their rights and abilities to donate money to Northern Ireland, they must hold a valid Irish passport—not an Irish passport held by their grandparents, which might entitle them to play for Ireland—or a certificate of nationality or naturalisation. The order does not allow someone simply to invoke Irish heritage to be able to donate. One would hope that the transparency revealed by the order will help us to be attentive to the risks raised by the noble Lord, Lord Kilclooney. If any failings become apparent as the data is gathered, the Electoral Commission will be able to draw those to our attention and they can be examined in the cold, hard light of day. That will be very important.

The noble Lord, Lord Murphy, made a number of important context-setting remarks, which I endorse. We are at a delicate time and there is no better time for transparency than right now. There should be no escape from that transparency. As many noble Lords have heard me say more than once, we need to establish a sustainable Executive in Northern Ireland. I believe that the order will go some way to ensuring that the people of Northern Ireland have the utmost confidence in the electoral process. The order is right and timely.

I recognise that the issue of backdating will remain sensitive. If, on consideration of the data as it is gathered, ascertained and seen, there are deemed to be issues that need to be examined further, the Government will consider them at that point. We are ruling nothing in and nothing out. On that basis, I commend the order to the House.

[Baroness Suttie]

My Lords, I thank all noble Lords who have taken part in this short, but extremely important and valuable, debate. I also thank the Minister for his characteristically courteous, detailed and open response.

I stress that we on these Benches will continue to press the Government to live up to their earlier commitment on backdating these provisions to 2014—I welcome some of the Minister’s comments in that regard—and to follow the advice of the Electoral Commission in bringing forward another order at the earliest convenience to make this possible. I also agree with the suggestion of the noble Lord, Lord Murphy, that, at the very least, following changes in circumstance, we should discuss again with the political parties in Northern Ireland and hear their views on backdating to 2014.

On this occasion, however, it would be inappropriate to test the opinion of the House. We do not want to see further delays to the order. I therefore beg leave to withdraw the amendment.

Amendment withdrawn.