European Union Referendum Bill

John Penrose Excerpts

Monday 7th September 2015 Commons Chamber

[Mr Baker]

A great many fascinating and important points have been made about impartiality of the media and spending by political parties. I will speak briefly about amendment 22 and my amendment (a) to amendment 2, tabled by my hon. Friend the Member for Stone (Sir William Cash), which deals with the EU institutions and their spending.

It has been put to me that if the EU institutions spent heavily in the referendum campaign, it would greatly assist the campaign to leave, particularly if some of the Commissioners came over on speaking tours and explained their plans for a federal Europe. Notwithstanding that, it is a matter of concern that the EU institutions might end up being the only unregulated parties in the course of the campaign. I am therefore keen to hear the Minister’s thoughts on spending by the EU institutions, but I know we all want to hear him cover the wide range of points made during the debate, so I shall sit down.

[The Parliamentary Secretary, Cabinet Office (John Penrose)]

This is a very large group of amendments, covering almost the entirety of the Bill, it is late and I have less than 10 minutes, so I shall skip lightly over anything covered during Committee stage with the Leader of the House and focus on the new points and the new areas raised this evening. I commend all the Government amendments in the group and will try to summarise the most important ones briefly, before moving on to some of the others in the group.

First, there are amendments dealing with changes to the campaign rules. They broadly have the support of the Electoral Commission and will ensure that the Bill and PPERA operate together and that campaigning is fair and transparent. They include changes to allow the lead campaigns to be designated quickly if needed, so that they do not cut into the short 10-week campaign period, and to allow the Electoral Commission to reject applications from campaigners with offensive or obscene names. Second are the amendments dealing with changes to the administration rules. They are all technical and deal primarily with the interaction between UK law and Gibraltarian law. Third are amendments responding to concerns raised by Members in previous debates to rule out holding the referendum on 4 May 2017 and to add Irish citizens resident in Gibraltar to the franchise.

I will deal first with clause 2 and the referendum franchise. Quite a lot of this was dealt with in Committee, and given the limited time, I will have to skip very lightly over it. I will, however, mention Government amendment 24, which makes a small change to permit Irish citizens resident in Gibraltar to vote in the referendum to bring equality to who can vote in the UK and Gibraltar. The Government of Gibraltar support the change, and I am pleased to see consensus across the House with an Opposition amendment for the same purpose, amendment 18, having been tabled. I am grateful to my hon. and learned Friend the Member for Sleaford and North Hykeham (Stephen Phillips) for raising the matter in Committee.

Given the limited time I have, I do not propose to spend a great deal of time—in fact, any—on votes at 16, because we covered it in Committee. I will come back to the issue of EU citizens at the end, if time allows, but there is an awful lot of other ground to cover.

As I said, the Government amendments on campaigning broadly have the support of the Electoral Commission and will ensure that the Bill and PPERA operate together and that campaigning is fair and transparent. On designation and the time allowed for the campaign, we have proposed changes which I hope will please my hon. Friend the Member for Stone (Sir William Cash), as they address concerns he raised with me in Committee and again this evening. He was worried that we should have a full 16-week campaign and that designation should not eat into the final 10-week short campaign period. I promised him that we would find an answer to make sure that it did not. These changes mean that the required statutory instrument to fix the date for the referendum should, as is usual for an affirmative resolution, take six weeks to go through the House. Only once that process is complete does the 10-week short campaign period start. Obviously, six plus 10 equals 16. I hope that my hon. Friend and others will be reassured that we will have adequate time to debate during that entire 16-week period.

Equally, it is important that the designation process means that the decision on who are the lead campaign groups for the in and the out campaigns is properly arrived at that and those groups are clearly designated before the start of the 10-week campaign, since that will allow them to access the money that designation as lead campaign groups allows and also to spend that money correctly to put their points as strongly as possible during the last 10 weeks of the campaign. We have therefore decided to table an amendment that will allow the designation process to be done via a negative resolution and, if necessary, for that resolution to take effect immediately on the day, at the latest, that the SI setting the date for the referendum is tabled. That will mean that while the SI setting the date is going through Parliament, the work by the Electoral Commission to designate lead campaign groups can be going on in parallel and will be complete on or before the start of the 10-week period so that designation will be complete in time for the full 10 weeks to be carried out properly. I hope that that answers, very briefly, the major concerns that were raised in Committee and again here today.

I should also mention that the negative resolution I have described would need to take effect very promptly on the day that it was tabled. That is unusual; we usually wait for two to three weeks after tabling something before it takes effect. I have already spoken to the Chairman of the Joint Committee on Statutory Instruments to discuss the importance and exceptionality of getting the provision to take effect immediately rather than after three weeks. I look forward to working with him on this wherever possible.

I now move on to some of the non-Government amendments. Amendment 1, in the name of my hon. Friend the Member for Stone, would require that the referendum period be no shorter than 16 weeks. I hope we have already dealt with that and therefore do not propose to dwell on it any more strongly.

Amendment 3, also in the name of my hon. Friend, would require that the legislation be clear at least six months before it is required to be implemented or complied with. I think that his rationale is based on the Electoral Commission recommendation that the rules be clear six months before they are enforced. We can satisfy that recommendation in a slightly brisker and less onerous fashion, because we have already published the detailed draft regulations on how the vote should be held. They have been available in the Commons Library since July, and the Electoral Commission has been assessing them carefully too. The rules will already have been extremely clear for six months by spring next year, and I hope that that will give everybody plenty of chance to consider and absorb the details and subtleties as needed. I hope that my hon. Friend will therefore be able to withdraw his amendment.

New clause 11 deals with spending caps, which were mentioned by a number of colleagues. The new clause would mean that all political parties seeking to campaign in the referendum would not be able to spend, in total, more than £14 million. This would replace the individual spending limit set for political parties that register as permitted participants under the Political Parties, Elections and Referendums Act 2000. I think that my hon. Friend the Member for Stone is seeking to reduce the impact that political parties—presumably the major ones—can have in campaigning in the referendum, but I am afraid that the new clause would not necessarily achieve what he may intend. For example, assuming that the 11 parties had secured between them 99% of the general election vote, the Lib Dems and the UK Independence party would find that their spending limit fell by between 55% and 60% compared with the levels currently set in PPERA, and the Greens, Plaid Cymru and the Democratic Unionist party would find their allocations falling by over 90%. Instead of £700,000 each, Plaid Cymru, for example, would be stuck with a limit of £84,000.

If political parties wanted to get round my hon. Friend’s proposal they could simply register several other permitted participants and funnel any extra money that they might have into them. Their total spending would be well above the limit that he suggests, and the new clause would not be able to stop it. It also opens up the option for political game playing, whereby parties may not want to campaign but simply register to impact on and reduce the limits of other political rivals. That would not reflect well on the quality of rules underpinning the referendum. I therefore hope that he will be able to withdraw the new clause.

I hope that I can reassure my hon. Friends in relation to the various amendments on the European Commission’s role. For a start, neither EU institutions nor foreign Governments are legally permitted donors under UK election law, so any campaign group that took money from them would be committing an offence. I note that the Electoral Commission announced on Friday that it does not support the amendments for that reason. There are well-tested rules, modelled on election rules, to prevent anyone from circumventing that by using middlemen. Equally, to take an example entirely at random, if my hon. Friends are considering supporting the out campaign, I gently suggest that any attempt by the EU to interfere in the campaign would be a huge boost to my hon. Friends’ side, and although the EU is many things, it is not stupid, so I suspect that it already understands that point.

Time is very tight, but I propose to speak very briefly about the changes proposed to broadcasters’ impartiality. I simply say that the existing regulators already have many of the required powers; the question is about turning principle into practice and getting them to use those powers. I am delighted to confirm that my right hon. Friend the Secretary of State for Culture, Media and Sport has urged them to do so. I therefore hope that we will not need to add any further regulators to the panoply that already exists.

I will sit down to leave the hon. Member for Ilford South (Mike Gapes), who moved the lead amendment, a few moments to round off the debate.

[Mike Gapes]

It is important to say that this has been a useful and interesting debate. The real debate is of course yet to come for the country. I will withdraw amendment 20, but the issues that I raised are pertinent to our country’s democracy and are certainly of great concern to the millions of British people living in other EU countries, who feel that they are being disfranchised on a vital decision that could affect their wellbeing and future. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.