Draft Transparency of Donations and Loans etc. (Northern Ireland political parties) order 2018

Ian Paisley Excerpts

Tuesday 19th December 2017 General Committees

[Owen Smith]

With the greatest respect to the hon. Gentleman, I can very easily describe the money as shady. The Constitutional Research Council is not a body that has on its books access to the best part of half a million pounds’ worth of resources. It is not a body that has made political donations other than one other self-declared donation of £6,500 to an hon. Member who campaigned for Brexit. It is not a body about which we have transparency—the person who is responsible for running the CRC has not said where the money has come from, and it has refused to reveal who its donors are. That may be its right under the nature of its unincorporated association, but I think it is shady. Given the suspicion that the DUP was used as a vehicle to channel money that could not be deployed elsewhere during the Brexit campaign, these are the right sort of questions that anybody who is interested in transparency in this House ought to be asking.

[Ian Paisley (North Antrim) (DUP)]

Does the hon. Gentleman accept that, no matter what he proposes, the information that has already been made public voluntarily is no different to what the registered interest would be; that the transparency he seeks is already there; and that he could not ask for any more information than has already been revealed? Unless he is proposing a change—

[Mr Bradshaw]

Why not backdate it then?

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[Owen Smith]

As my right hon. Friend says from a sedentary position, why not backdate it then? Why not accept the view that is now uniformly held by all other political parties in Northern Ireland save the DUP? The hon. Member for North Antrim is right that the DUP revealed—I think it was voluntary—that the Constitutional Research Council made the donation, which would be in line with the legislation. However, he does not want any more scrutiny on that money because there are serious questions about where the CRC got the money from. If it was not from Richard Cook, the man in charge of the organisation, who was it from? Can the hon. Gentleman tell us?

[Ian Paisley]

Once again, is the hon. Gentleman saying that he would change the law and get the Electoral Commission to do that with all donations to all parties? What has been put out voluntarily is more than the Electoral Commission likes to be revealed. The name of the donor and the amount of the donation are available, and the Electoral Commission has the address and other such details. The hon. Gentleman is making a specific difference between this donation and any other donation made to any other political party, including his own. He has accepted that nothing else would be revealed under the changes that he has suggested.

[Owen Smith]

In that case, I cannot understand why the hon. Gentleman or any DUP Member should object to this measure being backdated to 2014. If there is nothing to hide, everybody should simply get on with revealing it and he can agree on that point.

[Owen Smith]

The hon. Gentleman is completely right that it would have to apply across the board for all political donations. Séamus Magee, formerly the head of the Northern Ireland Electoral Commission, tweeted:

“Every party in Northern Ireland understood that the publication of political donations over £7,500 was to be retrospective to Jan 2014.”

I presume that anybody who made a donation in Northern Ireland after January 2014 did so in full knowledge of the Northern Ireland (Miscellaneous Provisions) Act 2014, which made it clear that their donations would be revealed if the Secretary of State were to pass an order in this place, which he could have done in January 2014.

[Ian Paisley]

If that is the case, why did Labour members of the Northern Ireland Affairs Committee subsequently vote to block that? Why did they support not revealing that information?

[Owen Smith]

I do not know what the hon. Gentleman is referring to, but the Labour party’s view is that this measure should be retrospective and should be backdated to 2014. We agree with the head of the Northern Ireland Electoral Commission that it is deeply disappointing that the Government are choosing not to do that. In truth, the issue is important beyond Northern Ireland, not least because the money was used to prosecute the Brexit campaign outwith Northern Ireland, and because it speaks to a broader issue of transparency and honesty in our politics.

Politics has come into malodorous disrepute in recent years, and all new generations of politicians bear the onus and have the responsibility to clean it up and bring us back into good repute. Unfortunately, this affair stinks. It stinks because the Government have chosen to come up with a date of July 2017 that deliberately excludes from publication the DUP donation—the largest donation and biggest item of political campaigning expenditure in the history of Northern Ireland politics. There must be a very simple reason for that if the Government are genuine about wanting further transparency and are honest about feeling that Northern Ireland needs to be brought into line with the rest of the UK. It will not have escaped the notice of people across the country that it is deeply ironic that the DUP, which only last week was protesting that Northern Ireland had to be absolutely in line with the rest of the UK, is unable to accept that Northern Ireland should be in line with the rest of the UK on this issue. The DUP wants special dispensation and special status for Northern Ireland on political donations.

That irony will not have escaped people. What must equally not escape people is that we need to move into a new era of openness and transparency. That is why Labour will be voting against the draft order and asking the Government to go away and think again or, if not, to justify why they have come up with the arbitrary date of July 2017, which precludes publication of important public information.

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[Mr Bradshaw]

It is a great pleasure to serve under your chairmanship, Mr Hosie. As some Members may know, I have spent a lot of the past few months working on trying to expose dark money in British politics, and the role it may have played in the past and may be playing now. I am delighted that those on my own Front Bench and indeed those in the Scottish National party will vote against the order and I would like to explain why they have for my full support.

My hon. Friend the Member for Pontypridd has already given a comprehensive outline of some of the background to the main donation that is the subject of concern, I hope, to this Committee. What he omitted to mention is that as well as the £282,000 spent on adverts in the Metro newspapers on the mainland of the United Kingdom in the referendum, £32,000 was also spent with the Canadian data company AggregateIQ, which has been linked to Donald Trump’s billionaire backer Robert Mercer, and the data company Cambridge Analytica, which is being investigated by our Information Commissioner and which has been forced to hand over emails under subpoena from the special counsel investigation under Robert Mueller looking into Russian subversion in the United States. This is a very serious matter that I hope would concern all hon. Members present.

My hon. Friend also referred to the original source of this donation: the Constitutional Research Council and its one-man-band owner or runner, Mr Cook. The Electoral Commission in Northern Ireland fined Mr Cook and his organisation £6,000 in August this year for

“failing to comply with electoral law.”

It was one of the biggest fines ever imposed by the Electoral Commission but because of the current rules, which the Government is not backdating with today’s reform, the Electoral Commission is not allowed to say why that fine was imposed or which law was broken. That is a completely unacceptable state of affairs. The only conclusion that any reasonable person can draw is that the DUP was used, with its knowledge, by the CRC to funnel money to the leave campaign in a way that to this day keeps the source of that money secret. By refusing to make this provision retrospective, the Government are effectively complicit in covering that up. Whatever your views on Brexit, Mr Hosie, the people of Northern Ireland and the UK as a whole deserve to have confidence in the transparency and integrity of our electoral and party funding system.

As we have already heard, the political parties in Northern Ireland—with the exception of the DUP—civil society in Northern Ireland, and the Electoral Commission all believe that transparency should be made retrospective to 2014, and that was their original understanding.

[Ian Paisley]

I am interested in right hon. Gentleman’s points. I wonder whether in his inquiry and examination today he will let us know whether he has done any investigation into the £13 million that Sinn Féin has deployed in elections in Northern Ireland.

[Mr Bradshaw]

My main concern in all of this is to try to uncover the dark money that played a role in the referendum campaign. If the hon. Gentleman has any evidence that he would like to send me in that respect, I would be grateful to receive it. If he wants that to be made public and transparent as well, let us backdate this to 2014. I do not understand why, if the DUP has nothing to hide, it is are being so defensive about this. If the Government have nothing to hide, why not have full transparency back to 2014?

[Ian Paisley]

rose—

[Mr Bradshaw]

The hon. Gentleman is not even a member of the Committee, so I will make progress if he does not mind. Naomi Long, the leader of the Alliance party in Northern Ireland and the politician who secured this change to the law, with the support at the time of all the Northern Ireland parties, has said:

“The successful amendment ensured that all donations dating back to the commencement date of the legislation (January 2014) can be published once the exemption is lifted.

All the parties have been advised by the Electoral Commission that this is the case and guidance was issued to ensure that all donors from that date would be advised that any anonymity would be merely temporary.”

Again, that was the understanding of the parties at the time, so why have the Government changed their mind? Why would the independent and highly respected Electoral Commission set its face so strongly against what the Government are trying to do today? The only conclusion I can reach is that the Commission knows something about that period between 2014 and 2017 that it believes to be strongly in the public interest to disclose but is prevented from doing so.

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[Simon Hoare]

It is a pleasure to serve under your chairmanship, Mr Hosie. It was all going so well: my hon. Friend the Minister set out very clearly, with characteristic calm, the position around which all the parties in Northern Ireland had levitated and thought, based on common sense, was the right approach. Everyone in this place, whether we are speaking on the Floor of the House or in Committee, always need to remember—and it is a sadness that we have to remember—that when we are dealing with matters in Northern Ireland and about Northern Irish politics, the additional calls for sensitivity and diplomacy in our language are ever heightened.

It would be marvellous—I am sure the whole Committee would rejoice, as I would—if we could arrive at a time where we could deal with issues of politics in Northern Ireland in exactly the same way as we deal with them in Dorset or in your part of Scotland, Mr Hosie, or in Norwich or any other constituency. As it is, we are not in that position yet.

It has always been understood by shadow Ministers, of whichever stripe, that they have a special responsibility to try, while making a political point, to straddle the divide and make sure that those sensitivities are respected. It is unfortunate that the hon. Member for Pontypridd, who usually fulfils that role with such gusto and class, has singularly failed to do so today. I asked him a direct question on two occasions, which he neglected to answer. It was either a flip-flop or politicisation, because the hon. Gentleman’s delineation of the chronology does not bear any scrutiny.

I took note of what the hon. Gentleman said. First, he referred to January, and then he moved to February, where the nature of the donation made to the Democratic Unionists became apparent. That is all frightfully interesting, save for the fact that, when he got to the middle of July, when all this brouhaha was supposedly at its height, the hon. Gentleman was still referring to the Secretary of State’s decision as the best decision. If only the hon. Gentleman had left it at that point, I think he would have commanded the support of the Committee.

As I said in my second interjection on the hon. Gentleman, I rise in this debate as a Catholic Unionist who was on the remain side. It would seem to me that this money, wherever it came from, was not particularly wisely spent. I do not want to go down that particular road, but if I heard correctly it was spent on a wraparound on a free newspaper handed out to commuters in metropolitan areas that predominantly voted to remain part of the European Union, so the mastering of the dark arts of persuasion to vote leave appears to have backfired.

[Ian Paisley]

I appreciate the point that the hon. Gentleman is making about transparency. However, is it his understanding, as it is mine, that if the Labour party, along with the Scottish National party, votes against this instrument, it will vote against transparency and publication in some cases?

[Simon Hoare]

The hon. Gentleman makes a strong and pertinent point.

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[Chloe Smith]

That was a lovely long intervention, so that is the hon. Gentleman’s lot—I will not take another one from him. I will explain exactly those points.

I remind the House that the Conservative manifesto for the 2017 election in Northern Ireland pledged to increase transparency. We are delivering on that. The Labour party is choosing not to. That is amazing.

We wrote to the parties in January. This year, Northern Ireland parties have engaged in two elections and in sustained political talks, so to offer the position in January, to seek views and then to take action from July is a reasonable approach. My right hon. Friend the Secretary of State has already explained that he thinks that it is not right or fair to impose retrospective regulations or conditions on people who donated in good faith with the rules as they were set at the time.

[Ian Paisley]

Will the Minister confirm that this vote is take it or leave it—that if the Government lose, there will be no publication?

[Chloe Smith]

Indeed, that is the case. If Members were to vote against tonight’s order, they would vote against transparency. It is as simple as that. That is what we are dealing with here. Let us not forget what we have been through to get here.