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

Lady Hermon Excerpts

Wednesday 9th October 2013 Commons Chamber

Only when such a report is satisfactorily concluded will we have any reassurance, modest though it may be, that these complex issues have been considered properly and that the inevitable disruption will be minimised.

[Lady Hermon (North Down) (Ind)]

The hon. Gentleman will know that the Government propose to postpone the Northern Ireland Assembly elections from 2015 to 2016. If the House supported the new clause, would part 2 of the Act not come into force until after the Assembly elections in 2016 or have I misunderstood him?

[Wayne David]

The fact that the elections in Northern Ireland are being postponed will provide a greater opportunity for these matters to be considered carefully. The hon. Lady’s question is essentially one for the Government. How they respond to this situation is up to them. What is clear is that this work has to be done in preparation for all the elections to the devolved institutions. We want to be satisfied that the Government have considered carefully all the Bill’s implications before it is approved.

[Lady Hermon]

I am extremely grateful to the hon. Gentleman. I did not want to throw cold water over the new clause. I want to reinforce his opening remarks about Northern Ireland. Since the Good Friday agreement 15 years ago, civil society in Northern Ireland has been able to participate willingly and openly in responding to Government proposals. A lot of that activity has been done by groups from different denominations and all communities in Northern Ireland working together. Those groups are extremely worried about the impact of part 2 on that activity because of the reductions and limitations on expenditure and because of the span of activities that will be caught by the Bill. I did not want to deter the hon. Gentleman from pursuing the new clause, but wanted clarification on the date until he wanted part 2 to be postponed.

[Wayne David]

I thank the hon. Lady for her question about the delayed election in Northern Ireland and for her extremely important comments from first-hand experience about the important role that civil society plays in Northern Ireland. That role is sometimes not fully appreciated by politicians in Great Britain.

As my hon. Friend the Member for Aberavon (Dr Francis) mentioned, the participation of civil society in Wales has been increasing. The same is true of Scotland. However, the participation of civil society in those countries is not nearly as important as in Northern Ireland. It is not to put it too strongly to say that the engagement of civil society is one of the anchors of the peace agreement. It is a key reason why so much progress has been made in Northern Ireland over the past few years. I reiterate that that has been accepted by the Electoral Commission and by many politicians of all political affiliations in the north of Ireland. This is not a party political issue, but a question of how democracy can best flourish and function.

I am involved in civil society in Wales in a modest way. My background is in the youth service, and I am the president of the Council for Wales of Voluntary Youth Services, which, through the Welsh Council for Voluntary Action, has made representations on the Bill. Its concern is first that the stipulations are onerous—I will come to that in a moment—but also that there has been no prior consultation with the devolved institutions or civil society. That sends out a negative message about the lack of thought and, as some might say, the less than benign intentions behind the Bill. All those points have been well made, and I thank those who have reinforced them.

I will now move on to consider new clause 3 if I may—[Interruption.] I was just making sure that you were hanging on my every word, Mr Speaker, and I am pleased to say that you are. New clause 3 is short but important:

“Within one month of Royal Assent, the Electoral Commission must lay before Parliament—

(a) full cost projections of the impact of Part 2 on their running costs;

(b) their assessment of the administrative impact on third parties.”.

The new clause is straightforward but underlines that, frankly, not enough work has gone into the Bill, much of which gives the impression that it was written on the back of an envelope in a rush, and there has been no proper consultation, drafting or consideration.

As many have noted, the Electoral Commission is extremely critical of the proposed legislation for a number of good reasons. One of its concerns is the lack of consideration given to the technical implementation of the Bill, and how much it will cost to be implemented properly in practice. The Electoral Commission is not a party political body; it is truly and genuinely impartial, and considers the technical implementation of a piece of legislation with regard to regulation and elections. Its responsibility is to ensure that elections are conducted properly and fairly, according to the law.

There have been various estimates of how much the proposed legislation will cost the Electoral Commission to implement. A conservative figure is £390,000, although others have said it will cost a heck of a lot more. It has even been suggested that the legislation would be so complex, and the burden on third sector organisations so great, that it is unlikely it could be implemented properly in practice, and certainly not to the extremely short time scale envisaged. This is not about all elections being delayed, as in Northern Ireland, but about the first impact and the general election in May 2015. To get this complex Bill up and running, not just here in the centre of the process but to have a proper understanding of all the things that voluntary and campaigning organisations must do to comply, will be extremely difficult. In essence, the new clause asks the Government to pause and realise that it is all well and good to enact the Bill and say that this or that will happen, but they must also have cognisance of what it will mean on the ground, both for the Electoral Commission and for third parties.

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[Wayne David]

That is a telling intervention from the Chair of the Political and Constitutional Reform Committee, and to return to a point I made earlier, it is sad and unfortunate that the Electoral Commission, like everyone else, was not consulted about the Bill. That makes for bad legislation and poor electoral administration, which is worrying.

[Lady Hermon]

Does the hon. Gentleman have the benefit of knowing how many people in the Electoral Commission are engaged in looking after controlled expenditure relating to the Political Parties, Elections and Referendums Act 2000, and how many would have to be recruited to deal with the extended range of activities by the extended group of people and campaigners who will be caught by the Bill if it is passed unamended?

[Wayne David]

The honest answer is that I do not know. I asked the Electoral Commission if it would like to elaborate on its submission, and perhaps the Chair of the Select Committee can help in that respect.

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[Mr Allen]

I do not pretend to speak for all those people—and I certainly do not speak for the friends of the badgers, of whom I think the hon. Gentleman is the patron, if not the patron saint. These people are making their own representations through our democratic process—such as it has been—on this Bill, and they are making noise. They are saying the way we are doing this is not satisfactory.

[Lady Hermon]

I endorse the comments that have just been made and to say this is, perhaps, the piece of proposed legislation on which I have received the most correspondence. In Northern Ireland—and the other regions of Scotland and Wales—the threshold has for some reason been reduced by more than half to £2,000 for no good reason. No justification has been given for that at all. A number of cross-community organisations in Northern Ireland are exceedingly concerned about the impact on them and how they will be able to make representations to candidates in the run-up to any of the elections that are coming up in Northern Ireland.

[Mr Allen]

The hon. Lady makes a clear and succinct point. The sad fact is that this provision is a mystery; clause 27 has no antecedents and no pedigree, and we are not sure why it is in the Bill. Nobody has asked for a reduction in the interaction. Many colleagues throughout the House want a greater interaction—dare I cite the Prime Minister talking about the big society? I welcomed those words, because I would like to see that. This provision does not welcome the big society; it shrinks the big society to a slightly smaller big society that feels unloved, chilled, unable to get its point of view over and unable to articulate the things that drive it to be in existence.

My reason for moving amendment 102 and asking colleagues in all parts of the House to support it is, again, to send a signal to the Government that they should think again on the issue—this is not the end of the process. They should go away, take good advice, perhaps even listen to this House and perhaps even set up an arrangement whereby further evidence can be taken. My Committee, which is all-party, and its unanimous report might be able to help in that, and we are keen to find a way forward that arrives at a consensus. The only way in which we will get that pause, and get the Government to have another think and a little more of a listen to all the people who are writing to us today on this issue—people whose credentials are unimpeachable—is by voting down clause 27 tonight. The only way to do that is to support amendment 102 and I urge all colleagues to do so.

[Tom Brake]

Third parties may campaign in a relevant election up to a particular threshold without being subject to any electoral controls or restrictions on their activities. The Political Parties, Elections and Referendums Act 2000 sets the threshold for third parties campaigning in England at £10,000, and at £5,000 for third parties campaigning in Scotland, Wales and Northern Ireland. Third parties may exceed these thresholds only if they register with the Electoral Commission as “recognised third parties”. They are then permitted to incur “controlled expenditure”, as it is defined by clause 26 of this Bill

Upon registration, third parties also become subject to spending and donations controls for the duration of the regulated period of the relevant election. The Bill’s intention is to ensure greater transparency of campaign finance, and so provides that a third party must register with the Electoral Commission as a “recognised third party” if it wishes to spend more than the revised threshold in the Bill—£5,000 in England or £2,000 in Scotland, Wales or Northern Ireland. That will have the effect that more third parties will account for their expenditure and provide details of the donations they receive. It is not clear to me what the Opposition’s concerns about this provision are. It is about providing more transparency so that people can see who is campaigning locally in support of a party or candidates.

[Lady Hermon]

What is the reasoning for halving the expenditure threshold from £10,000 to £5,000 in England but more than halving the threshold in Wales, Scotland and Northern Ireland? Our threshold has been reduced from £5,000 to £2,000. Unless my maths escapes me, our figure is less than half what it was. What is the justification for doing that?

[Tom Brake]

I thank the hon. Lady for that intervention. The reason is simply that the Government wanted to arrive at some straightforward figures—£5,000 and £2,000 in the respective nations—and we felt that given the size of those nations, spending £2,000 had a significant impact on the election campaign. Therefore, from a transparency point of view, we felt this was important to allow people to see who was actively campaigning in support of a party or candidates.

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[Mr Lansley]

I hope I will be clear, just as I thought my right hon. Friend the Deputy Leader of the House was clear during discussions on part 2 of the Bill. We had a number of meetings with a range of organisations, and we listened carefully to points raised in this House and by those organisations. I met the National Council for Voluntary Organisations before Committee stage, and I was clear that we would make changes to the definition of expenditure for electoral purposes, to remove what it regarded as the risks and uncertainty associated with those definitions. It was not our intention to change in substance the test for what constitutes expenditure for electoral purposes, albeit that we intend—rightly, I think—to introduce greater transparency by including the range of controlled activities in a way consistent with recommendations by the Electoral Commission in its regulatory review.

It is important for us to have a registration threshold, so that those who want to spend a significant amount of money to influence electoral outcomes do so openly. They will not be prevented from doing that, but they will have to do it in a transparent way. It is important to get big money out of trying to influence electoral outcomes. It is therefore important to bring down the threshold, and for it to be disaggregated so that it cannot be spent disproportionately in individual constituencies or small geographic areas.

We did not want to change the test, in the Political Parties, Elections and Referendums Act 2000, that only expenditure that could reasonably be regarded as intended to procure or promote the electoral success of a party or candidate should be controlled expenditure. That will still be true. In fact, it will be even more narrowly true, because we have taken out the strand relating to enhancing the standing of political parties at relevant elections, as it was capable of being used to create uncertainty.

Members have quoted from the letter by Sir Stuart Etherington, the chief executive of NVCO. I urge them to read it carefully. It says that there is uncertainty associated with the definition in the 2000 Act, and that that continues to be the case. It is the job of the Electoral Commission—taking the test we have here, which is as clear as we could make it—to inform organisations through the guidance it produces. We stand ready to work with the Electoral Commission. It is an independent organisation and it is for it to decide how it goes about that task, but we could not have made it any clearer.

[Lady Hermon]

The Leader of the House is being most generous in taking interventions. May I ask him to address one particular issue that pertains to Northern Ireland? He emphasised the need for transparency and the need to know who influences elections, and I think we all agree that that is important. However, the Government have agreed that the anonymity of donations to political parties in Northern Ireland will continue. That can no longer be justified on security grounds, because Northern Ireland has successfully hosted, without incident, the G8 summit in Fermanagh and the world police and fire games. How does he square those two things?

[Mr Lansley]

Each has its own particular characteristics and the Speaker will forgive me if I do not respond to that point, as I think it is outwith the terms of the Bill. We do not intend to change that. We are introducing transparency relating to expenditure by third parties seeking to influence the outcome of elections. The Bill has no impact on the donations that individuals or organisations make to political parties, or on how political parties spend money at elections.

We were not able, on Report, to discuss the final group of amendments on part 3 of the Bill. We continue to value the important role trade unions play in public life. We recognise that their influence extends beyond their own members, which is why it is important for members, employers and the public to have confidence that unions know who their members are. The Bill is in no sense an attack on trade unions. That is not correct. The measures are not designed to make it harder for unions to operate. I will be clear: the Bill will not prevent unions from taking industrial action; it will not require unions to collect more data; and nor will it place membership data in the hands of employers. Instead, it provides the public with reassurance that trade unions are fulfilling the duties to which they are already bound. Part 3 of the Bill strengthens requirements in existing legislation to ensure that unions can demonstrate that they keep an up-to-date and accurate membership register.

Part 1 will create transparency with regard to who is lobbying whom in relation to key decision makers. The Labour party, and last year’s report by the Select Committee on the earlier consultation, seeks a different Bill—one that creates a large-scale bureaucracy listing everybody who engages in any kind of lobbying activity. We have looked at that approach, and, frankly, it is not remotely justified. Transparency is the way forward: transparency in lobbying and in third-party campaigning. When people set out to influence the electoral outcomes, they must do so in a transparent way.

Charities, voluntary organisations and third parties who want to campaign on policies and issues will continue to be free to do so, as long as they do not step over the line and set out to influence electoral outcomes directly. There will be transparency in how trade unions represent their members, because they will know who their members are. These are the ways we will provide reassurance in the political system and enhance confidence through transparency and accountability. I commend the Bill to the House.