(4 months, 3 weeks ago)
Public Bill Committees
Lisa Smart
I should start by reminding the Committee that I am a member of the Speaker’s Committee on the Electoral Commission, so I have been a part of some of the discussions the Minister mentioned. I also met the chief exec of the Electoral Commission to talk about what is in the Bill, what the Electoral Commission welcomed and worked with officials on, and what it would have liked to have seen more on. That was a useful and productive meeting. The commission made some public comments, and I cannot remember the exact wording used, but it was underwhelmed at some elements, I think.
I am particularly keen to speak to new clause 46 and new clause 53, which is in the name of my hon. Friend the Member for Guildford. New clause 46, in the name of the hon. Member for Warwick and Leamington (Matt Western), has drawn attention to Electoral Commission comments about a Catch-22 in its powers to investigate suspicious transactions:
“Despite our statutory duty to monitor and take all reasonable steps to ensure compliance…we currently have no ability to obtain any information from financial institutions that we can use to monitor and independently verify provenance or the permissibility of funds, unless we open a full investigation. This is a weakness: to open such an investigation needs clear evidence—but we can’t always obtain that in the first place.”
The Government said that they would keep the Electoral Commission’s powers under review, and noted that they were increasing planning powers per offence to provide a greater deterrent. However, the report emphasised that the Electoral Commission can impose fines only if it can prove an offence has occurred in the first place. The fact that it often cannot do so is precisely the problem and underpins the need for stronger information-gathering powers. New clause 46 would increase the commission’s powers to require financial institutions to provide it with information in relation to the permissibility of donations.
New clause 53 is complementary to new clause 46. It would enable the Electoral Commission to require information before launching a formal investigation. When I met the commission’s chief executive with my hon. Friend the Member for Guildford, who tabled the new clause, we talked about exactly that issue. The Rycroft review, which has been mentioned many times today, states that the Electoral Commission, unlike the other regulators, cannot demand information outside a formal investigation, meaning that it cannot work in real time to head off offences. The review recommends extending powers so that the commission can require information from relevant bodies and persons.
By comparison, the Charity Commission has the option of a regulatory inquiry, which gives information-obtaining powers without the necessity of enacting a lengthy statutory inquiry. The Joint Committee on the National Security Strategy report, describing the Catch-22, recommends powers for the Electoral Commission to compel information, deployable in appropriate cases outside formal investigations. The Committee on Standards in Public Life’s 2021 review recommended extending the commission’s powers to compel document information and explanation outside an investigation.
Election-related harms are increasingly amplified online. The Electoral Commission evidence to the Speaker’s Conference explicitly links disinformation and platform algorithms to harassment and intimidation, and it describes concrete candidate harms, including deterrence and avoidance. The Speaker’s Commission earlier called for electoral law review, including addressing the disinformation that can fuel abuse and intimidation, and a number of people involved in the democracy sector and the implementation of the enforcement of electoral law would welcome looking at a review of all the many Representation of the People Acts that have taken place over time, so that we can look at where they complement one another and where, on occasion, they do less than that.
The last point to make is that if platforms can micro-target voters in real time, surely the regulator must be able to obtain basic information in real time. On that note, I commend new clauses 46 and 53 to the Committee.
Lloyd Hatton
I will keep my remarks brief in the interests of avoiding repetition. It is important to put on the record the changes in the Bill, which are hugely welcome. One of those is massively improving the information sharing and investigatory powers of the Electoral Commission to ensure closer working with regulators and law enforcement.
It should go without saying that the commission is the key watchdog in our democratic process and that it ensures that our elections and our political parties operate with integrity day to day. That is why it is particularly important that we look at some of the points being made as part of new clause 46. As has been said often today, that is touched on in some detail as part of Philip Rycroft’s review; the need to ensure that the information-sharing and investigatory powers of the Electoral Commission are as effective as they need to be, and that they work in a two-way direction to ensure that that work is undertaken.
I note that the Minister already touched on this at the start of this grouping, and that her and her officials will be wanting to look at it in more detail. I look forward to that, because it is important that we get this right as we make these positive steps forward in this part of the Bill. We must ensure that the Electoral Commission, as our key national watchdog for elections and the democratic process, has the powers and information at its fingertips to operate as effectively as possible.
(5 months, 2 weeks ago)
Public Bill Committees
Lisa Smart
I am working with the Public Bill Office on an amendment that extends the regulated period. Given the narrow scope of the Bill, that is a way of thinking about that.
Lloyd Hatton
Q
Dr Susan Hawley: The Electoral Commission needs to come up with robust guidance on that. It needs to look at industry standards from the regulated sector to tackle money laundering. I want to come back to the donor declaration, because that is also critical to this. We have heard from law enforcement that it is not clear to them that the proceeds of crime are not allowed as donations, for instance. If you have a situation where proceeds of crime can be donated, that is pretty extraordinary. We need a robust section 54A that puts some onus on the donor and makes a false declaration a criminal offence.
I do not know whether that answers your question, Lloyd, or whether you wanted me to talk more about “know your donor”, but I think they complement each other. You have “know your donor”, which is about what parties do, but also the donor declaration, so that you are putting some onus on the donor to actually be honest about where that money comes from.