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

Helen Goodman Excerpts

Tuesday 10th September 2013 Commons Chamber

[Stephen McPartland]

The hon. Gentleman has summed up why we have waited three and a half years for the Bill, and why we do not want to wait any longer. We want to get the Bill going.

I believe that the purpose of part 2 is to prevent a small number of large organisations from channelling money in a way that would affect the outcomes of elections, irrespective of the level at which that happens. Its purpose is not to upset the local charities with which we all work, but to enable us to work with those charities to secure the best possible deal for our constituents and communities.

[Helen Goodman (Bishop Auckland) (Lab)]

A new low has been reached in the handling of the Bill. I do not think that we have seen such a shambles since the last occasion on which the Leader of the House was involved with a piece of legislation. At least on that occasion there was a pause when the Government decided to go back to the drawing board. This time, we seem to be being expected to debate a Bill which the Minister himself, from the Dispatch Box, has said is not adequate and must be changed. I am pleased to see that the Chair of the Procedure Committee, the hon. Member for Broxbourne (Mr Walker), is in the Chamber, because I feel that the Committee should consider the process issues connected with the Bill.

It is peculiarly ironic that the Minister, the right hon. Member for Carshalton and Wallington (Tom Brake), is a Liberal Democrat. One would think that, of all the things that the Liberal Democrats could defend, one would be liberal democracy. This is about the nature of our democracy, and I really think that the Liberal Democrat members of the coalition should learn to stand up to the Tory members. The Bill is clearly a highly political piece of legislation, aimed at defending Tory donors and attacking the civil society groups that might support any other political activity and any other political parties.

It is particularly worrying that the Parliamentary Secretary, Cabinet Office, the hon. Member for Norwich North (Miss Smith), has admitted in reply to a parliamentary question that the first time she spoke to voluntary sector organisations about the Bill was on Monday last week, at least two months after the publication of the Bill.

I do, of course, support amendment 47. I want to say a few things about my experiences working in the voluntary sector, as they help to explain why I am so horrified by the contents of clause 26. Before I was elected to this House I worked in three voluntary sector organisations: the Runnymede Trust, the Church of England Children’s Society and the National Association of Toy and Leisure Libraries, which I ran. The Church of England Children’s Society, in particular, did a lot of campaigning work alongside all the many practical projects it ran. It is perverse to put a limit on the amount that voluntary sector organisations can spend on campaigning in the run-up to a general election because that is when they can most effectively influence the political process, as that is when the political parties are writing their manifestos and when candidates are standing for election and re-election.

--- Later in debate ---

[Andrew Gwynne]

My hon. Friend is right to refer to the explanatory notes. One of the reasons why so many voluntary organisations are nervous about these provisions is outlined in paragraph 59:

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

[Helen Goodman]

My hon. Friend is absolutely right, and I am grateful to him for reminding me of paragraph 59, because I, too, had underlined it. That makes the situation almost completely unpredictable for voluntary sector organisations.

[Tom Brake]

Is the hon. Lady saying these voluntary organisations are campaigning in support of a political party or for the election of a party candidate, because, of course, if they are not doing that, they are not covered by the controlled expenditure provision?

[Helen Goodman]

Yes, but that is the whole problem. They may not say, “Vote Liberal Democrat”, but if they say, “Don’t vote for candidates who voted for an increase in tuition fees,” everybody will be pretty clear what that means. The right hon. Gentleman’s party would be perfectly well able to go to court and say, “The effect of the expenditure must also be considered and it is clearly discriminatory against Liberal Democrat candidates.” That is the problem.

[Andrew Gwynne]

The sentence before the one I previously quoted mentions

“enhancing the standing of a registered political party or parties or candidates.”

In my hon. Friend’s opinion, would the Deputy Prime Minister’s pledging not to increase tuition fees on behalf of the National Union of Students have increased the electoral opportunities of that candidate in the 2010 general election?

[Helen Goodman]

My hon. Friend is pointing to the very serious practical problems that everybody—both the politicians standing for election and voluntary sector organisations—will face.

[Lady Hermon]

The intervention of the Deputy Leader of the House has, not for the first time today, added confusion. We are talking about clause 26, which states that “a course of conduct” could be covered if

“it does not involve any express mention being made of the name of any party or candidate.”

Therefore a charity that does not mention the name of a party or candidate could be covered.

[Helen Goodman]

That is right.

In the run-up to general elections, voluntary organisations often send e-mails and letters asking people where they stand on certain subjects, and after receiving the answers they send another message to their supporters saying, “Well, candidate X stands for what we want and candidate Y stands against it. If you think this is a big issue, we advise you to vote for candidate X, not candidate Y.”

[Stephen McPartland]

If a charity advises their supporters to vote for candidate X rather than candidate Y, that could affect the outcome of an election and it would therefore have to be included within regulated expenditure under current charity law.

[Helen Goodman]

That is a good point; I will concede that point to the hon. Gentleman.

[John Cryer]

What the hon. Member for Stevenage (Stephen McPartland) says is right, but over the past few days and weeks we have all been reading the briefings from charities and they are not saying “If we do this it is controlled expenditure, and if we do that, it is not.” The problem is the doubt, and that will be resolved in court cases that will probably run for years, unless this Bill is heavily amended, which we are expecting from the Government.

[Helen Goodman]

My hon. Friend is right. The problems of substance and process in the preparation of this Bill are numerous and inter-connected. People working in voluntary organisations are always annoyed that politicians of all stripes want to associate themselves with their good works but often want to ignore the hard messages they receive from those organisations. They want to ignore the lessons based on the wide range of practical experience the voluntary sector can bring to the table. This Bill is institutionalising cloth ears on the part of politicians.

It is ironic that part 2 of this Bill should come from this Government, because when the Conservatives were trying to get elected they were proclaiming the big society. Vladimir Putin would be proud to introduce this Bill.

[Caroline Lucas]

New clause 10, which stands in my name and those of the hon. Members for Nottingham North (Mr Allen) and for St Ives (Andrew George), would require the Government to carry out a proper assessment of the effect of third-party campaigning on UK elections, because I want to know what problem the Government think they are trying to fix. Alongside the rest of part 2, the changes made by clause 26 would silence legitimate campaigning voices in the run-up to elections. Equally alarmingly, Ministers are trying to push through this clampdown without a shred of evidence that there is a problem with third sector organisations exerting an undue influence over elections in the first place. As many hon. Members have said, the best way to proceed would be to ditch the whole of part 2 and only introduce changes for which there is a robust evidence base—one that would attract cross-party support—and which could take place after consultation with all organisations affected. That is what new clause 10 proposes.

Some people say that organisations such as 38 Degrees are scaremongering and that the Government’s concessions demonstrate that everything will be fine, but Ros Baston, a solicitor specialising in political and election law, told a number of MPs at a meeting that I hosted this morning that they would be advised to read the briefing from the Electoral Commission itself. Many hon. Members have already quoted from that, so I will not add to that. However, I would point hon. Members in the direction of Sir Stephen Bubb, the chief executive officer of the Association of Chief Executives of Voluntary Organisations, who says that even after these vague concessions have been promised

“the Bill remains fundamentally flawed. Our issue with it is not simply how it affects charities, but the fact it suggests they, and not other groups in society, are to blame for the public’s loss of trust in politics.”

He is very right in that assessment.

I strongly believe that there is a case for revisiting the current legislation, introduced by Labour in 2000 with the primary aim of preventing the emergence of US-style front groups working for particular candidates or parties, because the existing legislation has already been criticised for being heavy-handed in how it goes about achieving what is, of course, a laudable aim. As a result, some fiercely non-party political organisations are already saying that even the current rules have had some dampening effect on the freedom of charities and civil society organisations to campaign on policy issues—not for any political party or candidate—around the time of elections.

The crucial point must be to proceed on the basis not of hearsay but of a sound evidence base. It is right to examine the effect that third-party campaigning has had at elections in the UK and whether it has exerted undue influence over elections. It is also right to look at whether the activities of charities and civil society groups have harmed the public perception of the political system, as the Cabinet Office contends. But such a review must surely also look at whether the opposite is closer to the truth. It must ask whether existing rules are already too restrictive: do they make it unnecessarily difficult for the public to hear the opinions of those who might have different views from particular parties or candidates; are they imposing disproportionate limits on the ability of charities and others to engage in political and policy debate as one way of pursuing their charitable purposes; and are they preventing people from getting together to seek to influence the policies and positions of those who want to become their elected representatives?

--- Later in debate ---

[Susan Elan Jones]

My hon. Friend could well write the episode of the soap opera that I was describing.

As a co-chair of the all-party group on civil society and volunteering, along with the hon. Member for St Ives (Andrew George) and Baroness Pitkeathley, I was delighted to see the voluntary sector speak up loudly on this issue—rightly so, given the attacks on civic society in this Bill. I know that many hon. Members have been deluged with e-mails, letters, telephone calls and requests for meetings about this. We know the NCVO’s serious concerns from its briefing, and it raised the specific point of how damaging it feels the legislation would be for expenditure thresholds and activities and how they relate to small charitable groups.

[Helen Goodman]

My hon. Friend is absolutely right about this. One thing voluntary groups do is use campaigns to raise their profiles so that they can raise funds to do more practical work. Their campaigning activities are part of all their work and it all fits together for them. The Bill will damage not only their ability to speak but, potentially, their ability to do some practical work.

[Susan Elan Jones]

That is absolutely right.

Many concerned voices were heard in last week’s debate and many thoughtful speeches, too, none more so than that of my hon. Friend the Member for Nottingham North (Mr Allen), who is Chair of the Political and Constitutional Reform Committee. I do not quite concur with one small aspect of his speech, however. He said that

“one of the most wonderful parts of my life experience as a Member of Parliament is when we come towards a general election, and all those different bodies start to get hold of us, lobby us, knock on our doors, phone us and send letters—‘Come to our meeting. You will not get our vote unless we know exactly what you are doing on this.’ Someone on the opposite side then says exactly the same thing”.—[Official Report, 3 September 2013; Vol. 567, c. 205.]

In truth, although at times such meetings will be bliss itself and will be meaningful, sometimes they will frustrate and annoy many Members and the Government—any Government. That is why it is correct that the right of such organisations to do this must be protected at all costs so that they can put forward their view unhindered, without being entangled in red tape, and can speak truth to power unhindered by the certainties of this Bill.

I wonder how the Bill would affect the pro and anti-HS2 lobbies, the campaign for digital hearing aids, the campaign for the rights of Gurkhas to settle in this country and some of the campaigns run by the Royal British Legion.

--- Later in debate ---

[Jacob Rees-Mogg]

It is a great pleasure to speak while you are in the Chair, Sir Edward, on the feast of St Pulcheria, who died on this day in 453 AD. It is the 1,560th anniversary of her death.

[Helen Goodman]

Having read the hon. Gentleman’s amendment, I wonder whether he is trying to take us back to the politics of those years.

[Jacob Rees-Mogg]

Even this Parliament did not exist under the benign reign of the Empress Pulcheria, so I am afraid that I am unable to propose doing that.

The purpose of my amendment, which I think fits very well with the clause, which I support, is to limit the ability of people in receipt of public funds to intervene in elections, particularly general elections. In this country we do not have state-funded political parties. We have Short money and Cranborne money to help the parliamentary activities of Opposition parties, but we have consistently decided that the state would not fund political parties and that they would instead be funded by private donations, trade union donations and business donations. It therefore seems to me to be completely wrong for third parties that might depend on subventions from the state for a large part of their income to be able to campaign as third parties in general elections.

--- Later in debate ---

[Jacob Rees-Mogg]

Again, I am in disagreement with the hon. Gentleman, who, surprisingly, I often agree with about many things. The amendment does not change in any way the definition of election expenditure. It leaves it as it is set out in the rest of the Bill. As I have said, that definition leaves unchanged the situation for people hosting hustings meetings. What I am doing makes not one iota of difference—not one jot of change—to the Church of the England. It will still be able to host meetings in churches and it would still be in difficulties if it decided not to invite particular candidates. That is quite right, because at the heart of democracy is the notion that candidates should be treated equally.

[Helen Goodman]

The hon. Gentleman seems to have forgotten that British Telecom, Arriva, Stagecoach, Heathrow, Virgin Care, Tata Steel and farmers in his constituency are all in receipt of large amounts of public money. Is he really saying that none of them may make statements that could be taken as interventions in a general election?

[Jacob Rees-Mogg]

The hon. Lady is ignoring the detail of the Bill and carrying on with the absurd scaremongering to which we have been listening for more than a week. A farmer in my constituency who is in receipt of subsidies would have to register as a third party and, according to the terms of clause 27, spend more than £5,000 to be in any way affected by my amendment. If only the farmers in my constituency were so rich that they were scattering £5,000 hither and yon, my own campaign might be the beneficiary of such largesse.

--- Later in debate ---

[Jacob Rees-Mogg]

As an established candidate before I was elected in the last election, I did not receive any help from British Telecom. I had no idea that British Telecom was funding the campaigns of candidates up and down the country. If that were a purely commercial activity, it would be mistaken in doing so because it would alienate half its customers who would dislike the party that it decided to support.

We have heard throughout these debates Opposition scaremongering about all these third parties lined up waiting to support individual candidates, with the question of whether that is against charities law or constitutionally improper being cast to one side. That is being brought back in the context of this clause. It is absolutely clear from the Bill, from what the Minister has said and from the law as it currently stands that these bodies—charitable bodies, in particular, but also firms such as British Telecom—are not going to be third parties because they do not and, indeed, should not intervene directly in the election of individual candidates or in supporting individual parties.

[Helen Goodman]

I am sorry, but the hon. Gentleman is talking out of his hat. The fact is that a lot of large private-sector businesses are donors to political parties, and that is an intervention. Is he saying that if they had been in receipt of public money, they should not be making these interventions? When they give money they are also making statements, not only about individual candidates but about parties.

[Jacob Rees-Mogg]

The hon. Lady is wrong to say that I am talking out of my hat because if I did, Sir Edward, I would be out of order and you would therefore not allow it to take place. Third parties that merely donate to other political organisations are not third parties under the terms of the Bill. To be a third party under the terms of the Bill one needs to be campaigning in such a way that one is advancing the campaign of an individual in a particular constituency or a political party across a number of constituencies. Under the terms of the Bill, giving £10,000 to the Conservative party does not require registration with the Electoral Commission as a third party. All it requires is for someone to register their donation and be a legitimate British company, as covered by the Political Parties, Elections and Referendums Act 2000. The Bill is limited in scope. It cuts the amount that third parties may spend, and my amendment would ensure that people receiving Government funding do not become third parties. That seems not only reasonable but something that the Opposition in particular should support.

--- Later in debate ---

Let me return to my original point: we in this country have decided that parties will be funded privately from sources of funding that are not dependent on the state. Having made that decision, it is illogical to say that third parties can come in, interfere in our general elections, spend money in seats spread across the country, and support particular parties with money they have received directly from the state. That would be an abuse, but it is an abuse currently allowed under the law.

[Helen Goodman]

The hon. Gentleman is wrong. There is public support for candidates in this country. We have a mixed economy because we all get free delivery of our manifestos to households in our constituencies.

[Jacob Rees-Mogg]

The hon. Lady is right that there is a free post, but parties are not publicly funded. They receive no cash for the free post; it is done without any cash transfer to parties, and they have no control of the money that comes to them. My point that parties are not funded by the state is right. There is Short money and Cranborne money, which I mentioned, but that is specifically for parliamentary activities, not campaigning.

--- Later in debate ---

[Helen Goodman]

What about the British Legion?

[Jacob Rees-Mogg]

The British Legion will not become a third party in a general election because it is against charity regulations for it to do so. It would be an outrage if one of the most admired and apolitical bodies in this country suddenly started saying that people should vote Conservative—let alone say that people should vote Labour, heaven forfend! Charities are not there to intervene in general elections. They have specific tax benefits and their ability to fundraise is dependent on them being charitable, not political, and there is a clear difference. There is no question of the Royal British Legion becoming a third party in a general election. That is the classic scare story that we hear again and again from the Opposition, who wish to obfuscate and confuse matters because they are worried that their trade union masters will, under this clause, have the amount they can spend reduced. They hide it; they camouflage it under this complaint on behalf of the Church of England, the Royal British Legion, and so on.

We should be concerned about third parties spending money in a way that is less regulated than political parties themselves, or having the ability to spend more and with lower effective limits on what they are able to do. The clause succeeds in doing that and would make no difference at all to charities or the Church of England. My amendment would further tighten the clause. As I have said, the Opposition should be enthusiastic about it, because it is wrong for Government money to be used by third parties when they have received it not for political activity but for their general activities of whatever kind.

[Jacob Rees-Mogg]

The Government and the taxpayer hand out very large amounts of money to third parties. Therefore, those parties should say either, “We will not take those funds,” or, “We want to be free to campaign.” They have the choice.

[Helen Goodman]

The hon. Gentleman reveals to the Committee that he does not understand how voluntary sector finances work. Voluntary sector organisations have restricted and unrestricted money. When organisations such as Shelter get money for public sector contracts, it is restricted and must be used on the service. The money used for campaigning comes from voluntary donations.

[Jacob Rees-Mogg]

The hon. Lady is not entirely accurate. If she were to trouble herself to look at the NCVO accounts, she would see that the largest contribution of non-allocated money—£500,000—is from the Government. When the NCVO spends unrestricted money on campaigning, there is a very good chance that it is Government money, which seems improper. I am well aware of the distinction between restricted and non-restricted money. Unfortunately, many Government grants are not sufficiently restricted and therefore can be used to lobby the Government. The hon. Member for Bassetlaw (John Mann) challenged me on that—I am concerned about that too, but it is not the specific point I am making.

--- Later in debate ---

[Angela Smith]

I thank my hon. Friend. What he said provides further evidence to show how this Bill was not properly thought through before it was brought before us. It shows, too, the amount of work that should have been done and the issues that should have been sorted out before it was brought here.

[Helen Goodman]

I am sure my hon. Friend is aware—I hope so—of the paper produced by the House of Commons Library, which shows that under the Bill’s proposals, the limits on third party spending in Wales are coming down to £24,000 and to £10,000 in Northern Ireland. That would mean that in Wales and Northern Ireland, it would be impossible to employ anybody in a voluntary sector organisation to run any kind of campaign for one year in four.

[Angela Smith]

I agree with my hon. Friend on that point.

As I was saying, our amendment is designed to return us to the status quo on thresholds and to help protect smaller charities and groups from being caught by legislation, making it virtually impossible for them to participate in the democratic process. That must be right, and the Electoral Commission has suggested, as I pointed out earlier, that the threshold should be raised. Let me quote from the evidence given by Jenny Watson to the Political and Constitutional Reform Committee:

“We said again in our written evidence that one practical thing that could be done to make a difference to the Bill would be to raise the thresholds at which people have to register, and we have a particular concern about that as it relates to Scotland, Wales and Northern Ireland, because those thresholds are low.”

Let me ask the Government why the voice of the regulator is being so badly ignored in respect of this legislative process. Why is the Electoral Commission being ignored? We will listen with interest to the Minister’s response on that point.

As far as the limits for controlled expenditure are concerned, our position is clear: the limits need to be defined in the context of meaningful reform of the funding of political parties and of their ability to throw big money at election campaigns. In other words, the Government need to withdraw the Bill and to rethink. They need to enter into meaningful negotiations with the other political parties and to commit to proper consultation and scrutiny of proposals as they emerge, in relation to both political parties and the third sector.

In concluding my remarks, I ask the Minister to think again about not just specific points in this clause, but something more fundamental. The Minister is a Liberal Democrat; I ask him to take back to his Conservative partners the message that the Government’s whole approach to this issue needs to be looked at again. “Think again” is our message to the Government, who should commit to discussions designed to produce meaningful reform within which we can place sensible changes to the rules on third party funding—changes that we can consult on with confidence, knowing that we have done the right thing overall in changing our politics for the better.