Trade Union Bill (Seventh sitting)

James Cartlidge Excerpts

Thursday 22nd October 2015 Public Bill Committees

[Stephen Doughty]

Indeed, I believe that to be the case. I have heard some clear evidence from unions that maintain political funds and, although affiliated to the Labour party, undertake other activities, as well as from those that are not affiliated to the Labour party but maintain political funds. The Government have already taken forward extensive regulation relating to the Political Parties, Elections and Referendums Act 2000, the gagging Act and so on. A lot of unions believe that activities will fall under those provisions and are worried about how they will comply.

[James Cartlidge (South Suffolk) (Con)]

Will the hon. Gentleman clarify something? He seems fearful that the clause will result in less funding for the Labour party, but if that is the case, there must be people who are currently donating through this mechanism but do not want to.

[Stephen Doughty]

It certainly will lead to less money for the Labour party—that is very clear—but not because people do not want to give money. Union money is some of the most transparent and openly gifted in politics. Were I to discuss the funding of the Conservative party at length, I am sure you would rule that out of order, Sir Alan, but it well merits a debate on the Floor of the House. If I remember correctly, in the previous Parliament, the former Member for Banbury could not read out his entire Register of Members’ Financial Interests because it would have taken him longer than the 10 minutes he was allotted.

The fact is that the Government are seeking to frustrate the genuine giving of money to political funds, some of which is then used to contribute to the Labour party. The reality is that people lead busy lives or, for example, are part of a widely dispersed workforce, as USDAW made clear to me. The fact that the transitional period to comply with one of the most major changes in trade union law for generations is only three months underlines the Government’s true intentions.

My right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) was absolutely right to raise this issue with the Prime Minister while she was acting Leader of the Opposition. She asked him to commit not to go ahead with these changes unless there was cross-party agreement. Is the Minister prepared to get to his feet and withdraw these measures and engage in genuine cross-party talks about the funding of party politics? I suspect not.

It is not acceptable for the Prime Minister to be curbing funds given transparently to the Labour party by hard-working people throughout the country while turning a blind eye to donations to the Tories from various corporate sources and hedge funds. If the clause stands part of the Bill unamended and the Bill receives Royal Assent, it will mark the abrupt end of the long-standing consensus in British politics that the Government should not introduce partisan legislation unfairly to disadvantage other political parties.

As Members will be aware from the oral evidence sessions, in 1948 Winston Churchill cautioned against taking such steps. He said:

“It has become a well-established custom that matters affecting the interests of rival parties should not be settled by the imposition of the will of one side over the other, but by an agreement reached either between the leaders of the main parties or by conferences under the impartial guidance of Mr. Speaker.”—[Official Report, 16 February 1948; Vol. 447, c. 859.]

Even Margaret Thatcher, a Prime Minister whose term was defined by her opposition to the trade union movement, considered proposals such as those set out in the Bill to be too extreme. She said:

“legislation on this subject, which would affect the funding of the Labour party, would create great unease and should not be entered into lightly.”

[Interruption.] I know you are asking me to come to a conclusion, Sir Alan. I will be there in a matter of moments. She was right. The Bill and the clause are creating great unease, and I find myself agreeing with the person who I suspect spurred the Minister and I into politics in the first place, although of course for very different reasons. In the light of that, we are looking carefully at the SNP’s new clause, which we will come to in due course, and which would put the Churchill convention into the Bill.

In conclusion, the clause will restrict unions’ right to freedom of association and their ability to engage in political debates, and it will create huge administrative burdens. It is widely known that opt-in processes reduce participation—for example, our approach to auto-enrolment for pensions is based on an opt-out model, given the clear economic evidence.

Amendments 34 and 35 are probing amendments that can be used to argue that members should not be required to submit repeated opt-ins. I hope the Minister will give us his thoughts on them in due course.