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

Lord Campbell-Savours Excerpts

Tuesday 21st January 2014 Lords Chamber

[Lord Wallace of Tankerness]

My Lords, I recognise the strength of feeling with which my noble friend Lord Tyler moved his amendment; indeed, it is one to which he has spoken in the past, and one which he, I and—at some stage—my noble friend Lord Wallace of Saltaire have discussed. We debated this issue last week when the Government tabled, and the House accepted, amendments which raised the third-party registration thresholds to £20,000 for England and £10,000 for Scotland, Wales and Northern Ireland.

An amendment providing for a new “third” registration threshold of £9,750 was also tabled and accepted. If that was not made clear, I apologise. The point has been picked up by the Electoral Commission. Perhaps I may give some clarity. This third threshold has been introduced to provide alignment with the constituency limits. It ensures that a third party, whether or not it is already registered with the Electoral Commission, will have committed an offence if it spends more than £9,750 in a constituency. In other words, if a third party is already registered, it will be subject to the constituency limit, exceeding which will be an offence. If it is not registered and exceeds the constituency registration threshold, it will also have committed an offence.

I hope noble Lords will recognise that this third registration threshold has not been introduced with the same purpose in mind as that which applies to the other registration thresholds. It has not been introduced to bring third parties into the regulatory regime. Instead, its principal purpose is to ensure that the offence of exceeding the constituency limit operates as intended. For this reason, the Government do not believe that there is a need for a registration threshold lower than the constituency limit.

I hear what my noble friend says about the need for clarity, and I hope that these words have brought greater clarity. I can also tell your Lordships that the Electoral Commission will make very clear in its guidance the operation of the various registration thresholds so that campaigners are left in no doubt about their responsibilities. I hope that the fears which my noble friend expressed on Report, that it would not be possible to keep account of what a third party was spending in a constituency, are resolved by this.

Moreover, the Government have spent a significant amount of time listening to the concerns of campaigners. Perhaps I should address my noble friend’s suggestion of a £5,000 limit. He said that £9,750 is a significant amount. We took seriously the representations made by campaigners, organisations, the commission chaired by the noble and right reverend Lord, Lord Harries of Pentregarth, and other Members of your Lordships’ House. One of the largest criticisms the Bill received, which was made abundantly clear to us, related to the registration thresholds. They were originally set at £5,000 and £2,000 in the Bill but the Government tabled an amendment last week to raise these to £20,000 and £10,000. This major concession was made with the intention of reassuring campaigners that the Bill would not seek to promote the principle of transparency by imposing onerous and unnecessary burdens on third parties. It was a direct response to the debates in and outside this House and I thank again all those who contributed to them. The increased thresholds mean that small campaigners need not worry that they will be unduly burdened by the Bill’s reporting requirements. The thresholds have been set at a level such that those campaigners who spend only small amounts of money will effectively be excluded from the regime.

I totally accept that this is a judgment call. I hear what my noble friend says about spending up to £9,750 but I also think it was my noble friend himself who made the point in our first Committee sitting that greater transparency goes hand in hand with a greater administrative burden and regulation. We have sought to try to strike the right balance. With regard to constituency spending, we believed that the lower threshold of £5,000 could risk capturing exactly those small local campaigners who have been so clear regarding their concerns about the impact that the Bill would have on them. It was not our intention to do so, and we certainly do not want to unpick some of the important work—

[Lord Campbell-Savours (Lab)]

The noble Lord, Lord Tyler, made clear in his contribution that the Electoral Commission was concerned about the lack of clarity. The noble and learned Lord is not answering that point. Is the commission simply to be ignored?

[Baroness Williams of Crosby (LD)]

Perhaps I may add to the point made by the noble Lord, Lord Campbell-Savours. The amendment of my noble friend Lord Tyler very much simplifies the administration. It sets a clear limit—rather clearer than the percentages in the original Bill. Given that, given the real problem about bureaucracy and fights with transparency in the Bill, and given that all of us appreciate the major changes made already, would the Minister not consider the advantages of both clarity and transparency in accepting this amendment?

--- Later in debate ---

[Lord Horam (Con)]

My Lords, I remind the House that I am a member of the Electoral Commission. This new clause gives the Government the power to deal with any consequences of the Bill that turn out to be radically different from those intended. Such consequences may indeed include the workload and the efficacy of the Electoral Commission, which has been greatly commented on today and in previous debates. The noble Baroness, Lady Mallalieu, talked about headaches and nightmares for the Electoral Commission. I hope it is not quite as bad as that but I appreciate her point. My noble friend Lord Cormack called, in the right spirit, for sensible and simple advice from the Electoral Commission. Given the hideous complexity of the Bill, that is more than ever necessary in this case.

I wish to draw the Minister’s attention to a point about the consequences for the workload and efficacy of the Electoral Commission. Clause 38 alters the legal language in which the remit of the Electoral Commission is incorporated. The Government have done this without any prior consultation with the Electoral Commission. This non-consultation, while fairly common in this Bill, is unusual generally in legislation and is doubly so when one considers that the Electoral Commission is not a government body but one that reports to Parliament through the Speaker of the House of Commons. It is deliberately independent of government yet the Government have altered the wording of its remit without any prior consultation with the Electoral Commission or with Parliament.

The Lords Constitution Committee noted that the regulatory duties of the Electoral Commission had been extended and advised that:

“The House may wish to consider the implications”

of that. The Political and Constitutional Reform Committee in the other place actually said that the clause should be withdrawn, pending consultation with the Electoral Commission. Of course, that has not happened.

It is fair to say that the Government’s motives in doing this were well intended but, as has often been said, the road to hell is paved with good intentions. The Government’s contention is that the change in emphasis of the Electoral Commission’s remit provides reassurance to non-party campaigners and the Electoral Commission itself that its role and responsibilities are important and necessary and that it has the appropriate statutory backing.

That is commendable but, on closer scrutiny of the Bill, it is not helpful. The main thing Clause 38 does is to change “general function” to “duties” and change taking “appropriate steps” to taking “all reasonable steps”. The problem with this is that it reduces the flexibility of the Electoral Commission to deal with spurious or politically motivated allegations that are clearly unfounded. The lawyers in the House will appreciate the difference between “appropriate” and “all reasonable” steps. The problem is compounded by the fact that, as a result of the Bill, many more campaigners are likely to be regulated, as has been acknowledged by the Government and other speakers. Any allegations may peak at the climax of the election and thus lead to confusion and loss of confidence in the new regime.

As has been acknowledged, many provisions are untested. On the one hand, the Government are giving the Electoral Commission more to do; on the other, they are making it harder to deal with simple and unsubstantiated cases quickly and cost-effectively. I am sorry to raise this point so late in the deliberations on this Bill, but I think that the Electoral Commission has shown admirable self-restraint in wanting the House to concentrate on the content of the Bill rather than on the problems that it may have in enforcing it and regulating subsequently. It is important to raise that point before the Bill is finalised here. I would therefore be grateful if the Minister would ensure that the Government talked to the Electoral Commission about this problem, which may occur over the next few months, and if necessary take corrective action by means of the powers which they are taking under this new clause.

Finally, perhaps I may say as a new Member of your Lordships’ House that the debates on this Bill have brilliantly illustrated this House’s role as a scrutineer of legislation. The Bill has been much improved as a result of the House’s efforts, and pride of place in that respect must go to the noble and right reverend Lord, Lord Harries, and his supporters on the Commission on Civil Society. They have, in common parlance, played a blinder.

Occasionally, their supporters outside the House have gone over the top. A certain co-ordinated “holier than thou” attitude has sometimes been apparent. I have lost count of the number of campaigners who have told me in identical words, “This is a deeply unpopular Bill the need for which has yet to be substantiated”. Letter after letter contained that particular clause; they could have been a little more differentiated in the way in which they approached this issue. Those campaigners have also attempted to portray themselves as defenders of democracy. Actually, in my view, it is the Government who are in this case the defender of democracy. As my noble friends Lady Williams and Lord Tyler have said in a Guardian article, this Bill has a noble intent, which is to defend the democratic process from distortion by excessive interference by outside interest groups. Quite rightly, the Government want to make the electoral process as level a playing field as possible. The noble Lord, Lord Martin of Springburn, whose great expertise in this area we acknowledge, made that point forcefully in the previous debate. The Government have also shown a creditable willingness to be flexible, having originally consulted too little and drawn the Bill too tightly. I commend my noble friends for that.

The end result, I believe—and I believe that it is the view also of the Electoral Commission—is a Bill which is workable. If it proves that the unintended consequences can be dealt with by a review process, that should happen and I commend my noble friends on making provision for it. I therefore commend them on the way in which they have handled the Bill in its totality.

[Lord Campbell-Savours]

My Lords, is there a connection between the substantial powers inherent in the new clause proposed in government Amendment 24 and the fact that the Bill is to be returned to the Commons with there being inadequate time for substantial consideration of potential Commons amendments?