Electoral Funding: Unincorporated Associations Debate
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Colin Clark
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Electoral Funding: Unincorporated Associations
Colin Clark Excerpts(5 years, 8 months ago)
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Martin Docherty-Hughes
It sounds like “Better Together”.
The case that proves my argument beyond doubt is the unincorporated association that Richard Cook leads: the Constitutional Research Council, or CRC. He describes the CRC as a group
“to start promoting the Union in all its…parts”,
and while it is based in Scotland, critically, it has managed to spread its tentacles across the rest of these islands. The CRC is most famous—or should I say infamous?—for the £435,000 donation it made to the Democratic Unionist party during the Brexit referendum.
Martin Docherty-Hughes
Not at the moment, no.
That was a vast sum for a party whose election expenses do not normally even get past five figures. Some £280,000 of that donation was spent on a wrap-around advert in the Metro newspaper in the lead-up to the Brexit referendum, despite the fact that the only part of these islands where the Metro is not distributed is the part in which the DUP itself stands.
The bizarre situation, Mr Austin—it is good to see you in the Chair, sir; perhaps you will remember folks’ names, if they are allowed an intervention—allied with the fact that the advert itself closely resembled the type of advertising promoted in the official “Vote Leave” campaign, meant that the case soon came to the attention of those investigating illegal collusion between the campaigns, including this Parliament’s own Digital, Culture, Media and Sport Committee.
While the where or why of that collusion is not relevant to the debate, the vehicle used by the campaigns as a conduit for this cash—the CRC—is. Because the CRC is an unincorporated association, it could mask the ultimate sources of those funds. I will let the Committee report say it, as it is incredible.
Martin Docherty-Hughes
I will not, no. The Committee stated that
“this Committee and the wider public have no way of investigating the source of the £435,000 donation to the DUP made on behalf of the CRC and are prevented from even knowing whether it came from an organisation, whose membership had either sanctioned the donation or not, or from a wealthy individual.”
This is a political donation equivalent to twice the price of the average house in most parts of these islands. It is almost 60 times greater than the £7,500 threshold for naming normal political donors, but we know absolutely nothing about its source, and the Electoral Commission cannot tell us, as elected Members in this Parliament, how it verified that it was permissible.
Martin Docherty-Hughes
No, I will not. I will make it clear that I fundamentally agree with my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald), and the Minister will not be able to turn to civil servants to answer on behalf of the Conservative party, because this is purely political. Let me also make it clear that this is the exact opposite of the probity and good governance that we would expect from a properly functioning liberal parliamentary democracy. I am sure that I am not the only one to come to the same conclusion as the DCMS Committee—that the CRC used this method.
Let me quote the Committee again. It stated that
“in order to avoid having to disclose the source of this £435,000 donation, the CRC, deliberately and knowingly, exploited a loophole in the electoral law to funnel money to the Democratic Unionist Party in Northern Ireland.”
I am of course disappointed not to see, for the first time ever, a member of the Democratic Unionist party at a Westminster Hall debate.
Martin Docherty-Hughes
No. I know that the hon. Gentleman wants to speak on behalf of the DUP, but I will not give way. I wonder how many DUP Members know what the true source of the money was and whether it did the requisite due diligence before accepting it. Why do we continue to let cowboys such as Richard Cook effectively mark their own homework? Surely there must be a way to ensure that the probity of major political donations can be assured.
Let us not forget that there is a legitimate reason for UAs to exist; it is not my intention to suggest otherwise. In a legal sense, it is understandable that certain groups may want to keep structures that have no legal existence separate from their members.
Martin Docherty-Hughes
No. This Government have undoubtedly allowed that to happen to our political system, with dark money now flooding unhindered through it. Dark money is a cancer in our political system, and unincorporated associations are the most prominent way in which that cancer enters the bloodstream. It is a malignancy that works by removing transparency and confidence in the system of political funding—something that undermines trust in the political system as a whole.
Martin Docherty-Hughes
No. We must be unflinching in our determination to root this out. As Oliver Bullough writes near the end of “Moneyland”, political parties have been guilty of accepting money when they cannot be entirely clear about the ultimate source of those donations. Whether it be the Conservatives, the Democratic Unionist party or the Vote Leave campaign, they have simply failed to do the correct due diligence. I will draw my remarks to a close with a quote from that book:
“Disapproval of these surreptitious payments should not depend on whether they are befitting your own side or not. They are inherently harmful. Without trust, liberal democracy cannot function.”
I shall recap and pose the questions that I would like the Minister to answer. Given all the ways in which individuals and organisations can donate money to political parties and groups in a transparent and straightforward manner, why do we still allow unincorporated associations, which are not political parties, to participate so freely, especially in a way that is easily exploitable by those who would seek to obscure the provenance of funds? Will the Government support the Scottish National party’s manifesto commitment to increase the sanctioning powers available to the Electoral Commission from £25,000 to £1,500,000? Will the Government do the right thing and extend the transparency rules around donations made in Northern Ireland from 2014? The cancer of dark money must be removed from our political system. I call on the entire House to join us in that process.
Chloe Smith
No, I will not, for entirely unsurprising reasons.
Reportable gifts include a single gift of more than £7,500, two or more gifts of over £500 given by the same person in the same calendar year that total more than £7,500, and any additional gifts of more than £1,500 given by a source from which the UA has already received a gift of more than £7,500 in the same calendar year. Electoral Commission guidance also states that any UA that intends to make contributions of more than £25,000 should keep records of all the gifts it receives that are worth more than £500.
There are various ways in which offences are deemed to have been committed. As hon. Members are aware, responsibility for regulating political finance sits with the independent Electoral Commission. It is right and proper that that should sit with an independent body. Any concerns about breaches of the law should be reported to the appropriate authority, and a record of the regulated groups who make and receive donations, including MPs, MSPs and other politically active people, is publicly available on the Electoral Commission’s website. That data is a treasure trove of information, because it reminds us that the Scottish National party and pro-independence campaigners have accepted political donations from unincorporated associations. Who would believe it?
Colin Clark
It is very good of the Minister to give way; it is unfortunate that the hon. Member for West Dunbartonshire (Martin Docherty-Hughes) would not. As the Minister was about to say, the Scottish Women’s Independence Fund Trust, an unincorporated association, has donated money to the SNP. On an associated subject, I would like to ask her opinion of another way of raising finance. The SNP have mentioned sewers; the former First Minister, Alex Salmond, raised £100,000 for a court case—and may have raised more money subsequently. We are talking about a different way of raising money, but does the Minister agree that perhaps Alex Salmond should give that £100,000 back? [Interruption.]
