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

Lord Bishop of Oxford Excerpts

Tuesday 22nd October 2013 Lords Chamber

[Lord Harries of Pentregarth (CB)]

My Lords, perhaps I may say on behalf of the House how much we are looking forward to hearing the maiden speech of the noble Lord, Lord Horam. He brings to the House a great wealth of experience from the other place. He has been a Parliamentary Under-Secretary of State in two departments and a member of a number of influential committees. He also brings a very interesting political trajectory, which indicates his capacity to enter into the point of view of other people and an independence of mind, both of which are characteristics of this House. We very much look forward to hearing more of those characteristics in his maiden speech and in further speeches in the House.

I declare an interest as chair of the Commission on Civil Society and Democratic Engagement. This commission has been set up with the backing of more than 50 churches and campaigning groups. However, due to the extreme speed with which this Bill is being pushed through, the commission has had only very limited time in which to act. Hearings have taken place in Scotland, Northern Ireland and Wales, as well as in London, but our report will not be published until next Tuesday. It will be in time for Committee stage but not for today. Today, therefore, I speak in a personal capacity, although obviously drawing on some of the evidence that has been put to us so far.

My concern, as is that of so many, is the sheer speed with which this Bill is being pushed through. It is a major concern of the Joint Committee on Human Rights, the Political and Constitutional Reform Committee, the Select Committee on the Constitution and the Electoral Commission. There is total agreement—no disagreement at all—that big spending campaigns should be properly regulated. But the changes made in this Bill, compared with what was in place for the two previous elections, mean that charities and campaigning groups feel that their fundamental right to free speech will be severely curtailed. They have not been consulted and nor has the Electoral Commission, which has to offer guidance on the implementation of the law. They have grave doubts about the Bill as it stands.

Part 2 of the Bill, as we heard from the noble Baroness, Lady Hayter, has united an extraordinary number of organisations. I am not going to go through the list but will just mention the National Trust. It argues that its campaigning, which has brought about so many benefits in relation to the countryside which we now take for granted, would simply not be possible under the Bill.

One of the reasons why charities and campaigning groups need to be consulted is that they are key players in keeping our democracy alive. With the drastic fall in political party membership and the indifference of so many to professional politics, it is these groups that arouse people’s interest and help to focus their concerns. At election times it is the churches and charities that organise the hustings. The CARE organisation, for example, was responsible for facilitating more than 300 hustings during the last election. It is the charities and campaigning groups that educate the electorate about particular issues so that they can put intelligent questions to the candidates. Overall they have had a huge influence. It was the churches and aid agencies which combined together to mount one of the biggest campaigns that we have ever seen, on dropping third-world debt. That was followed up with campaigns on the millennium goals and overseas aid generally. These campaigns have influenced all the major parties in a very positive way—how much poorer the world would have been without them. Because of the key role that these bodies now play in democratic engagement and in keeping democracy alive, Parliament needs to be particularly careful about any legislation which affects their ability to do this.

It is said that there are those who resent the role now played by charities in our society. Some apparently would like to confine them to service provision, leaving the formation of political policy to politicians. Whether or not this is the case, it does raise a fundamental question at the outset. Why has Part 2 suddenly appeared? What is the problem it is trying to fix? We are told that it stems from a worry that American-style big-money campaigning such as Citizens United might come over the Atlantic. If that is so, however, it would be easily caught by the present regulations. As far as the United Kingdom is concerned, in the 2005 and 2010 general elections only two third parties exceeded the new lower limit for the election year. In 2005 it was UNISON and the Conservative Rural Action Group and in 2010 it was UNISON and Vote for Change.

No problem has been identified and no reason has been given for this reduction or the rationale for this figure or any other. For the vast majority of charities and campaigning groups, it is the new threshold at which they will they have to register which has given rise to the widest concern. This has reduced from £10,000 to £5,000 a year in England and from £5,000 to £2,000 a year in Wales, Scotland and Northern Ireland. As if this was not limiting enough, the range of activities which will count towards the sum has been greatly widened. Until now it has only been the cost of election leaflets and posters. Now, according to the long list in proposed new Schedule 8A to the Political Parties, Elections and Referendums Act 2000, it will include all advertising and all costs involved in this, all unsolicited material addressed to electors and all associated costs, all expenses concerned with market research, canvassing and provision of services for the media or conferences, transport, travel costs, rallies and public meetings generally.

The scope is exceedingly wide and concerns expenditure over the whole year before an election as well as the immediate run-up to it, including staff costs in so far as they are connected with activities for election purposes which we know, according to Clause 26, are activities which can reasonably be regarded as promoting or procuring electoral success at any relevant election for a registered party or candidate.

There is a huge range of questions raised by this but the overall effect of reducing the limits at which a charity will have to register and the increased number of activities that will have to be taken into account when calculating the cost means that charities and campaigning groups which regard trying to influence public policy as one of their core activities will be seriously inhibited. It is not that they will be spending big sums; on the whole, they will not. However, from the beginning of an election year, if the Bill is approved, they will be very frightened of quickly going over the limit and doing something illegal. Many trustees of charities feel that it is part of their fiduciary duty—or they will do—to curtail severely, if not stop altogether, a range of activities that might be seen to be on the borderline for fear that the charity would subsequently be regarded as acting illegally.

If, however, they decide to take the risk and register, the paperwork needed to subdivide the elements of expenditure and people’s time could be a huge bureaucratic burden on small charities or campaigning groups, especially during the actual election period itself when they will have to produce weekly accounts of any expenditure. The impact assessment calculates that the cost will be only between nothing and £800 for any one organisation, but many charities think that this is a major underestimate of the kind of costs that might be involved.

[Lord Judd (Lab)]

My Lords, I am very struck by what the noble and right reverend Lord is saying. Does he not agree that the ground he is now covering brings into the light the fundamental contradiction that under charity law, charities are expected to make the best possible use of every penny that is available to them in fulfilling their purposes? This Bill is going to force them to waste it on bureaucracy.

[Lord Harries of Pentregarth]

That is a valuable point and I thank the noble Lord, Lord Judd.

There is a whole range of other problems. If groups campaign on a particular issue, the total costs involved will be attributed to each charity. Some of the most effective campaigns in recent years have come about because charities have combined. There are particular problems in relation to Northern Ireland, Scotland and Wales, where the sum has now been reduced to a paltry £2,000 in the year. I am not going to deal with that now, but it might emerge in subsequent days.

Time and again we have heard the phrase “chilling effect” being used. Some people say that they cannot understand why charities are worried about it because there will be no curtailing of their freedom. It is the combination of these elements, the lower limits and the increased range of activities that count towards them, together with a continuing fundamental uncertainty about the definition of an electoral activity in practice that is making so many charities feel that their freedom to engage is in fact being threatened. The Government are worried about a large fish across the Atlantic called Citizens United and fear that it might swim over here, but instead of waiting for it to come, they have sent out a deep sea trawler which has thrown up a huge amount of sand and confusion from the bottom of the sea and put a net over charities which have been swimming quite legitimately in the waters of democracy. It seems quite absurd.

There is a case for including a number of activities in what counts for electoral purposes. I think that we can agree on that, although the question of staff time raises all sorts of difficulties, particularly in the case of voluntary time and whether it is workable at all. But what is strange is that all these activities are being brought together—the lowering of the threshold and an increase in the activities that count towards it. Will the Minister explain what the problem is that has given rise to this severe curtailment? It is rather like offering someone a sum of money for a piece of work and then telling them that the amount is being halved while at the same time they will have to complete a number of other tasks in order to earn the money at all. Surely if there were no reported problems before, and the number of activities is to be increased, the thresholds should in fact be raised, not lowered, in order to account for the ordinary activities that charities regard as part of their core duties.

As I have said, there is a logical case for including a lot of these activities, but will the Minister say something about how these charities are to assess volunteer time? The National Trust, for example, has thousands of volunteers. Are they to be taken into account?

[Lord Phillips of Sudbury (LD)]

I am sorry to interrupt the noble and right reverend Lord, because I agree with every word that he is saying. May I just shoot one canard? It has been raised more than once. Section 87(2)(c) of the 2000 Act says,

“the provision by any individual of his own services which he provides voluntarily in his own time and free of charge”,

shall not be controlled expenditure.

[Lord Harries of Pentregarth]

I thank the noble Lord, Lord Phillips. I hope very much that the Minister will agree with that.

There is just one other point I would like to make. The noble Lord, Lord Tyler, has suggested that the present definition of an electoral activity promoting or procuring electoral success at any relevant election is accepted by virtually everyone concerned. I think that charities have not in fact been quite so happy about that as he suggests. There is still genuine uncertainty because this is a genuinely difficult area. If, for instance, a campaigning group on climate change looks at the policies of the different parties and assesses them according to whether it thinks that their policies are desirable as far as climate change is concerned, does that count as an activity for promoting or procuring electoral success at any general election? It seems to me that people of good will could argue that either way. Therefore, is there not a need for government lawyers, Charity Commission lawyers and the lawyers of charities to get together to see whether this really is the best definition or whether we can come up with something better?

[Lord Tyler]

I agree precisely with what the noble and right reverend Lord has just said. As was said earlier by the noble Lord, Lord Ramsbotham, it is charity law that has restricted many of these activities in the past. We have to make sure that these particular forms of legislation are mutually compatible so that everybody is clear where they stand.

[Lord Harries of Pentregarth]

That highlights the final point I want to make. Before this Bill proceeds any further, would it not be sensible for the Government to get government lawyers and charity lawyers together to see if we can get total agreement about the definition of the key phrase in this Bill?

This highlights the final recommendation of the Joint Committee on Human Rights that there should be a pause in this legislation. The committee says that,

“our primary recommendation is to urge the Government to 'pause' the Bill's passage through Parliament in order to allow for further consultation and scrutiny”.

It would be much better to have a Bill before the House which unites the Joint Committee on Human Rights, the Constitution Committee, the Political and Constitutional Reform Committee, the Electoral Commission and the charities—bodies which at the moment appear to have very severe doubts about it.