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

Fiona O'Donnell Excerpts

Tuesday 3rd September 2013 Commons Chamber

[Ms Eagle]

My hon. Friend makes an extremely important point about the chilling and dampening effect on the vibrancy of our democracy of this Government’s approach.

I thought at first that the Government might just have made a mess of the drafting—after all, they often do that and this Bill is certainly a mess—but it seems from the Cabinet Office response and from what the Leader of the House said today that they have deliberately set out to gag critical third-party voices. They have had repeated opportunities to address the concerns put to them by charities and campaigners, but they have dismissed them. This leaves me with the only conclusion that we can draw—that this is a deliberate and cynical attempt by the Government to insulate their policies and their record from scrutiny in the run up to the 2015 general election. Part 2 is totally unacceptable in its current form and it must be changed.

The Leader of the House tried to justify these draconian measures by arguing that they tackle the problem of third-party spending in politics, but he completely misses the point. Third parties spent less than 10% of the money spent by political parties in the last election. We all know that one of the biggest problems in our democracy today is the election expenditure arms race between political parties, not the expenditure of third parties. That is what drives the search for big-money donors. This Bill was a chance to tackle the big money in our politics, and the Government have completely squandered it.

This Government are happy to be financed by donors who pay huge sums to come for dodgy dinners in Downing street. They are a Government so shameless in their search for big-party donations that they were happy to split between the two coalition parties the proceeds of the late Joan Edwards’ half-a-million-pounds of life savings, which she had generously bequeathed to the nation in her will. Their squalid behaviour is left unaffected by this Bill; instead, it seeks to silence legitimate third-party campaigning organisations.

[Fiona O’Donnell (East Lothian) (Lab)]

Has my hon. Friend had any indication that the Government have considered the impact on third-party organisations wishing to speak out in the run-up to the referendum on Scottish independence, which will fall within the 12-month period?

[Ms Eagle]

Again, I am afraid there is very little evidence I can give my hon. Friend that the Government have considered in any serious way the impact of anything, since they consulted nobody before they came up with these proposals.

Finally, I want to comment on part 3, which centres on trade union membership records. There appears to be no policy motive for the introduction of this new law other than as a vehicle for cheap, partisan attacks on the trade unions, of which only a minority are actually affiliated to the Labour party.

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[Stephen McPartland (Stevenage) (Con)]

Before the debate started, I was quite optimistic about the Bill, because I thought it was a positive step forward. As the hon. Member for Nottingham North (Mr Allen), the Chairman of the Political and Constitutional Reform Committee, said, it would be quite nice to have a consensual way forward. I am pleased that we are debating the Second Reading of the Bill, because it gives us the opportunity next week to try to make some amendments, if people feel the Bill needs amending, and allows the charities dealt with in part 2—I shall come to that in a moment—to get commitments from the Minister at the Dispatch Box on what the provisions in the Bill mean.

Before I go through the bits of the Bill that I want to discuss, I should point out that a lot of those charities’ concerns apply to the law as it stands, as opposed to what is in the Bill. If the Bill did not go through, those charities and third-party organisations would still have a lot of those concerns about the current law, because of what we heard earlier about regulated expenditure. We have an opportunity to have the Bill spoken about on the Floor of the House next week, to get as many of us as possible involved and ask as many questions as possible, and then to get those issues out in the open, so I welcome the Bill in that sense.

I also welcome the fact that the Bill establishes a statutory register of professional consultant lobbyists. I know that it does not do enough for some of us, but it is the first step along the way.

[Fiona O'Donnell]

Would the hon. Gentleman not concede that the reductions in the ceiling for registering for political activity and in spending limits will have a huge impact on third parties?

[Stephen McPartland]

The hon. Lady makes an interesting point. I do not think those reductions will have any impact whatever. I have 400 charities and voluntary groups in my constituency, and if any of them could spend £400,000 they would be over the moon. The reality is that the reductions will not affect them whatever.

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[Fiona O'Donnell (East Lothian) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Glasgow South (Mr Harris). Like him, I welcome lobbying from constituents and organisations, whether they agree with me or not. I thank the hundreds of constituents who- have e-mailed me in recent weeks about this issue, Syria, the badger cull and so many other things. It makes life difficult for us, but life should be difficult for us, because the decisions we make in this place can be of the utmost gravity and have an impact on the people of these islands and beyond these shores. Never was that more clear than last week, so I was very pleased to receive so many e-mails scrutinising my thought process and my decision. On gay marriage, too, many organisations and individuals in my constituency told me how disappointed they were that I supported that legislation. However, it meant that when I walked through the Lobby in support of that Bill, I was unshakably certain that I was doing the right thing. That is the healthy and, at times, slightly humbling process that we all go through.

I hope that right now the National Union of Students is calculating how many pairs of flip-flops it can buy before the general election. I hope that animal rights groups and the proponents and opponents of gay marriage are all getting ready to remind our constituents how we have voted. If we have treated the process seriously, we have nothing to fear from that.

I was tempted to quote Owen Jones, who wrote an excellent piece in The Independent yesterday, but I thought I would have a better chance of getting the Government to listen if I used the commentary of the Electoral Commission and many other organisations.

This is a bad Bill, but we should not be surprised about that, given the form of the Leader of the House. This is a man who drives policy through with a finger in both ears, refusing to listen. He should reflect today on the process that he went through with the Health and Social Care Bill. When he finally took his fingers out of his ears and listened, it was a better Bill. I would like to know whether he agrees with that. I want the Lib Dems to think about what puppets they were during the passage of that legislation. They sat on the original Public Bill Committee and voted down Labour amendments, and then found themselves having to support the same amendments in the name of the Government in the Committee of the recommitted Bill. I hope that this time the Lib Dems will do the right thing. When they see amendments that will improve the Bill, I hope they will support them. Let us make this a better Bill, because there is certainly lots of room for improvement.

The hon. Member for North East Somerset (Jacob Rees-Mogg) completely missed the point today. I am always amazed when he rises from a prone position to speak, as if using a secreted system of hydraulics. He has completely missed the point on this Bill. Even the Electoral Commission has said that defining electoral purposes is extremely difficult. If the independent regulator says that it will be difficult to reach a definition, what hope is there for the Bill in its current form? The Electoral Commission also says that the Bill is devoid of policy aims. It is not clear what the Bill is trying to do. In fact, it is so directionless that I am surprised the Deputy Prime Minister has not turned up to close the debate for the Government.

I ask everybody in the House to think about the people who are involved in the voluntary sector. My hon. Friend the Member for Kilmarnock and Loudoun (Cathy Jamieson) and others have spoken about the volunteers who are worried what the Bill will mean for them. For Scotland, the limit for registering will be £2,000 and the limit on expenditure will be £35,000. That is the cost of one member of staff—one political communications officer—in a voluntary organisation. What will that do to the quality of debate in Scotland?

The marriage of the Government parties is a rocky one. It is perhaps not surprising that what we have today is the worst kind of shotgun legislation. The Bill has been rushed through at the last minute. I do not know why that is. I do not know whether the Government mean the Bill to be bad or do not know that it is bad. Either possibility is undesirable. We do not have time to debate it or scrutinise it properly in this place. There has been no public consultation. Even worse, there will be no time for voluntary organisations to prepare for the legislation coming into force before the next general election. In Scotland, where there will be a referendum on independence in 2014, the legislation will make many third-party organisations very nervous about speaking out. That is to be regretted. It is not what we need in Scotland and it is not helpful.

I will close by quoting David McColgan of the Scottish Council for Voluntary Organisations:

“It is universally accepted that democracy and public policy right across the United Kingdom is richer when all corners of society participate and feel they are free to do so. This bill deters engagement. It deters dissenters and it deters open reasoned debate.”

The Government have to get their fingers out of their ears and improve this Bill.

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[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I am glad we have the opportunity to debate the influence of third parties and non-elected actors on our political process, and I think the regulation of such activities needs to be reviewed. So far, however, the Bill is proving a flawed means of doing that, and we all agree that there needs to be much greater transparency of lobbyists. I echo concerns already raised about the missed opportunity to include a code of conduct in that process, and I cannot help but observe and echo observations by other hon. Members that not a single lobbying scandal from recent years would have been in any way affected had this Bill been enacted.

Part 1 of the Bill, wholly inadequate as it is, relates to matters that are largely devolved in Scotland, so in the short time available I will address part 2. The measures in part 2 are particularly deeply flawed, and in spite of all the assurances we have heard from the Leader of the House, they will place undue restrictions on the ability of campaigning organisations to raise legitimate concerns about public policy issues. Although it is not a declarable interest, I feel I ought to put on record my background working in public affairs and campaigning in the voluntary sector, as well as my past directorships of charities, both large and small. I am also a member of the Electoral Commission parliamentary advisory group.

My key point is that an active, politically engaged, challenging civil society is a hallmark of democracy and the lifeblood of live political culture, every bit as much as a free press or free and fair elections. I have grave concerns that a side effect of the Bill will be to restrict the discursive space where citizens can make a fuss about public policies that affect their lives. In Scotland, as the hon. Member for East Lothian (Fiona O'Donnell) outlined, there has been considerable concern about how the Bill will restrict perfectly legitimate activities. Martin Sime, the chief executive of the Scottish Council for Voluntary Organisations, has gone so far as to say it is an

“assault on…charities’ right to campaign”.

That is strong language from organisations that are not usually prepared to put their heads above the parapet so quickly.

As legislators and decision makers we are often challenged in the ways that citizens want us to meet their expectations. They share their experiences and views with us in ways that immeasurably enhance the democratic process, and any dilution of their ability to engage with us and hold us to account for our decisions is a wholly retrograde step. Sometimes that can be uncomfortable for us in the Chamber and in Parliaments and council chambers around these islands, but without the ability to raise concerns through collective efforts, our citizens will be deprived of important avenues of engagement in the political process and our democracy will be immeasurably poorer.

It is important to remember that campaigning civil society organisations that are also charities are already highly regulated by the Charity Commission, the Charity Commission for Northern Ireland, and the Office of the Scottish Charity Regulator. Charitable organisations are already prevented from campaigning in a politically partisan way, and during election periods they are already restricted in the kinds of activities they can undertake. In my experience, charities take those responsibilities extremely seriously and are careful about the public statements and activities they undertake ahead of elections. The proposals, however, go much further. Existing legislation on charities is working well, and we should not be looking to increase the regulatory burden on charities through the Bill. Part 2 of the Bill would do exactly that, and serious concerns have been raised about the unworkability of the proposals and the changes to definitions they would involve. I have listened carefully to those on the Front Benches this afternoon.

[Fiona O'Donnell]

Does the hon. Lady agree that we also need clarity about coalitions of charities—they may be experts on this—and what happens when individual members in a network engage in political campaigning?

[Dr Whiteford]

That is an important point and I will return to a concrete example from my experience and highlight the work of the Stop Climate Chaos coalition in Scotland, which I think enabled and facilitated cross-party support for the passage of a world-leading piece of legislation—the Climate Change (Scotland) Act 2009. It is exactly such campaigns that will be in jeopardy and might simply not happen, if we take the Electoral Commission’s evidence seriously.

Another concern is that a much wider range of activities will be regulated, including organisations’ media activities. The explanatory notes state:

“The definition of ‘for election purposes’ does not rely solely on the intent of the third party; the effect of the expenditure must also be considered.”

Such spending can be controlled

“regardless of whether incurring the expenditure”

is

“intended…for another purpose.”

That belies the Government’s statement, made to try to assuage hon. Members, that the measure will not have a restrictive effect—it clearly will have such an effect.

The Electoral Commission has raised some of the most serious concerns about the Bill, including the lack of pre-legislative scrutiny. I cannot help but believe that pre-legislative scrutiny would have gone an awfully long way to address problems with the Bill. However, in pointing out the obvious—that campaigning organisations are not like political parties—the commission highlights the difficulties it foresees in the discretion it will have to interpret what activity will be regulated as political campaigning. It has made it clear that it does not believe it is appropriate for it to have such wide-ranging discretion. In any case, it is concerned that the wide definition in the Bill and its explanatory notes of “election purposes” will be open to legal challenge.

I know from my involvement in charities that they are often very risk-averse—other hon. Members with extensive involvement in charities have said the same. They will shy away from anything that might embroil them in difficult legal wrangling and threaten their charitable purposes under their charitable status. The measure will lead to a risk-averse and self-censoring culture among charitable organisations. Also, no hon. Member has so far mentioned the capacity of the Electoral Commission to deal with the new layer of bureaucracy.

It is important for the Government to address the regulation of third-party spending at elections, but they must do so in a coherent way. Part 2 of the Bill goes much further than their stated intentions. I hope they take on board the concerns hon. Members have highlighted in the debate about the duplication and spiralling of regulation.

I have not had time to go into the referendum in Scotland and the regulations that have been agreed. However, I hope the Deputy Leader of the House takes the opportunity when winding-up to address that and other issues, and that he affirms the positive role of an outspoken civil society.

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[The Deputy Leader of the House of Commons (Tom Brake)]

We have had a lengthy and impassioned debate, and I am grateful to all Members for their contributions. I am afraid that in the nine or so minutes that are left I will not be able to address all the points that have been made.

First, let me remind Members of what this Bill is intended to achieve. It will push this Government’s culture of openness and transparency further by creating a statutory register of lobbyists, which the Government promised to do in the coalition programme. It will ensure that third parties that campaign at elections do so openly and within a fair regulatory framework. It will provide assurance that trade unions, as increasingly large and diverse membership organisations, know who their members are and can engage effectively with them. Those are all reasonable and valuable changes to our political system.

Let me now address some comments, concerns and myths. The Bill is not about closing down charities’ ability to influence policy, as many Members claimed. I want to put on record the following so that it is clear to Labour Members, because I think there is some confusion. At present, a charity can undertake non-party political activity where its trustees can show that it supports the charity’s purposes and will be an effective use of the charity’s resources. Charity law prohibits charities from engaging in party politics, from party political campaigning, from supporting political candidates, or from undertaking political activity unrelated to the charity’s purpose. Charities, and indeed all other organisations, currently need to register as third parties only if they are spending money on campaigning to procure or promote the electoral success of a party or candidates. That test will remain under the Bill.

As under the current provisions, charities can still give support to specific policies advocated by political parties if that would help to achieve their charitable purposes. Provided that charities continue to campaign as they currently do, maintaining their political neutrality and independence, expenditure incurred by them is unlikely to come within the definition of “controlled expenditure”. It does not now and it will not under our proposals. Of course, the Government have on a number of occasions expressed a willingness to work with charities to ensure that this is clear, and if more guidance is needed, we will certainly ensure that it is in place.

Before dealing with the myths, I want to touch on scientific theories. Today we have had a very significant scientific theory proven—that there are parallel universes. Labour Members are debating a Bill that will gag charities and destroy trade unions; we are building on the transparency already created by this Government in relation to Ministers reporting their meetings by establishing a register of consultant lobbyists, by reducing the risk of super-PACs, or political action committees, and by ensuring that trade unions have up-to-date membership lists.

I have never heard as many myths as enthusiastically mouthed and endorsed with so little evidence as I have by Labour Members today. The shadow Leader of the House spoke for 44 minutes during which she made no reference to her own party’s policy. We had high-octane rhetoric that was very low in calorific value. She talked about furious displacement activity—reference, presumably, to what happened in the 13 years of Labour Government, when there was furious displacement activity on lobbying but no lobbying legislation. This Government are now acting on that. I wonder whether the hon. Lady feels any embarrassment about her wildly inaccurate allegations about what the Bill will or will not do. I am not sure whether she is doing that because she has not actually read the Bill or because she has misunderstood it. I will give her a couple of examples.

There were a few interventions, one of which alleged that, under this Bill, Make Poverty History would not have happened. That is simply not true. As the hon. Member for Cardiff South and Penarth (Stephen Doughty) will know, in 2005 that campaign did not register as a third party campaign, because it conducted its campaigning in the appropriate way as a charity. That will continue under this Bill. Another intervention was on whether the Bill would impact on the Scottish referendum. The shadow Leader of the House indicated that she believes it would have had an impact on Make Poverty History and that it will have an impact on the Scottish referendum, but neither of those cases is relevant to the Bill.

[Fiona O’Donnell]

If the Deputy Leader of the House is right that there is nothing for charities to fear from the Bill, why are they and the Electoral Commission all so concerned? Is it simply a case of the same old Government excuse of bad communication?

[Tom Brake]

Clearly, the Electoral Commission has expressed concerns and when the Bill goes through its Committee stage, I am absolutely certain that further clarity will be provided and the commission will be in a better position to provide the guidance it is required to give in order to ensure that charities understand the basis on which we are proceeding.