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

Lord Hardie Excerpts

Tuesday 22nd October 2013 Lords Chamber

[Lord Hardie (CB)]

My Lords, I refer to my entry in the register of interests as president of Capability Scotland. I will not repeat the concerns about the effect of the Bill upon the voluntary sector, which were so ably expressed by my noble friend Lord Ramsbotham, the right reverend Prelate the Bishop of Derby, the noble and right reverend Lord, Lord Harries of Pentregarth, and other noble Lords. I agree with those concerns.

I support the intention behind the provisions in Part 1 about the transparency required from lobbyists, but I fear that they do not go far enough to restore public confidence in our political system. Like many noble Lords, I consider that the provisions confine themselves to the registration of consultant lobbyists and their dealings with Ministers and civil servants at the highest level, and they fail to address in-house lobbyists. Are the public not also entitled to know of these possible influences in the formulation of policy? The duty on Ministers to disclose, on a regular basis, meetings that they have with individuals and the subjects discussed is no answer to that omission. Should that disclosure not be contained within a central database of all activity and be available to the public for inspection? In that regard, I agree with the noble Lord, Lord Tyler. However, what sanctions exist for the failure of Ministers and civil servants to comply with such obligations?

The provisions are also inadequate in another respect. The obligation of disclosure is confined to lobbying of Ministers and Permanent Secretaries, Second Permanent Secretaries or persons serving in the offices listed in Part 3 of Schedule 1. As has been observed by other noble Lords, the reality is that lobbyists will also have dealings with civil servants of a lower grade as well as political advisers to Ministers. Can the Minister tell the House why the need for transparency has not been extended to people in those positions?

I share the concerns expressed by the noble Baroness, Lady Hayter of Kentish Town, the noble Lords, Lord Ramsbotham and Lord Lang of Monkton, and other noble Lords about the lack of any consultation about this part of the Bill before its introduction in the other place.

Part 2 includes various provisions restricting the involvement of third parties in elections by altering the definition of controlled expenditure and by reducing the level of such expenditure contained within the Political Parties, Elections and Referendums Act 2000. I accept that, where non-party campaigning takes place on a scale that could have a significant effect upon elections, it is important that it is transparent and controlled. However, we must guard against imposing arbitrary limits that will have the unintended consequence of discouraging electors from engaging in the democratic process. Any controls on third parties must be reasonable and a proportionate interference with the right to freedom of political expression. The Bill expands the definition of controlled expenditure in the manner already mentioned by noble Lords and I will not repeat that. At the same time, it reduces the limit on controlled expenditure from £10,000 in England, or £5,000 in each of Northern Ireland, Scotland and Wales, to £5,000 and £2,000 respectively, at which point registration is mandatory, with all the regulatory and administrative burdens that that entails, not to mention the risk of criminal sanctions.

I, too, wish to congratulate the noble Lord, Lord Horam, on his maiden speech. I share his concern about these reduced financial limits. Will the Minister tell the House the evidential basis for reducing the limits set in 2000, given that it is now proposed that the scope of the activities to be controlled is extended? I agree with the noble and right reverend Lord, Lord Harries, that the passage of time and the expanded definition of controlled activities suggest that an increase in the limits would be more appropriate.

I have similar concerns about the substantial reduction in the national limits of controlled expenditure. Since 2000 those have been £793,500 for England, £108,000 for Scotland, £60,000 for Wales and £27,000 for Northern Ireland. Clause 26(2) reduces those to £319,800, £35,400, £24,000 and £10,800 respectively. Has any assessment been undertaken on whether the revised figures would permit a reasonable opportunity to non-recognised third parties to campaign on issues that they consider to be of national importance? I question whether those limits would permit a national rally, for instance, if groups wish to campaign against government action, such as occurred in relation to the Iraq war or might occur in relation to climate change or other environmental issues.

The Minister sought to give us reassurance on that and emphasised that expenditure would not be controlled expenditure unless it could reasonably be regarded as promoting or procuring electoral success for one or more parties. The Minister is correct, of course—that is what Clause 26 says—but what is the practical implication of that? Let us suppose that a local action group has formed to oppose the closure of a local hospital in the constituency or to support or oppose HS2 or fracking. Expenditure on relevant activities, such as advocating the views of the group, would be controlled expenditure if those views were opposed by one candidate but supported by another. Is that consequence not an unacceptable interference in the democratic process which is disproportionate and which crosses the line of legitimate control?

There is another difficulty with this part. There are inconsistencies in the statutory regime that risk confusing third-party campaigners. I refer to Scotland, where the proposed limit of £35,400 includes expenditure during the year before the general election. In contrast, the spending limit for a Scottish parliamentary election, which has been fixed by this Parliament, is £75,800 for similar activities, but the relevant period is four months. The current proposal in the Bill before the Scottish Parliament for the referendum in Scotland is that there will be a spending limit of £150,000 for similar activities during the four-month period before the referendum. Such variations will confuse third parties in that jurisdiction who wish to engage in these campaigns. Will the Minister tell the House how he can justify the inconsistencies that exist in affording the electorate the opportunity of expressing their views?

Finally, the changes to the scope and financial limits of controlled expenditure will have an effect upon the enforcement regime operated by the Electoral Commission. Will the Minister confirm that the Government expect the commission’s regulatory regime to continue to focus primarily upon retrospective action and that its use of stop notices will be confined to cases where there is a significant risk of seriously damaging public confidence in the statutory controls? What assessment has been made of the likely increase in actions of judicial review against the commission as a result of the Bill? Will the Minister also advise the House whether additional resources are to be provided to the commission to enable it to meet its obligations?

Like other noble Lords, I urge the Minister to withdraw the restrictions that Part 2 imposes upon the freedom to participate in elections that has existed since at least the 2000 Act.

--- Later in debate ---

[Lord Wallace of Saltaire]

My Lords, we will return to the explanatory document at a later stage. This has been an extremely vigorous evening. We look forward to several days in Committee and on Report. The Government will consult a range of stakeholders between Second Reading and Committee, and we will continue to consult between Committee and Report. This House will, as the noble Lord, Lord Greaves, assured me very vigorously, look in detail at the language of the Bill and also look back at the language of PPERA, and, we hope, produce something of which we can all be proud at the end of the day.

[Lord Hardie]

I wonder whether the Minister will address the concerns of local action groups, as opposed to charities.

[Lord Wallace of Saltaire]

I am sorry; I did not hear the noble and learned Lord.

[Lord Hardie]

I was asking about local action groups as opposed to charities.

[Lord Wallace of Saltaire]

My Lords, local action groups, if they are not campaigning for or against a particular candidate or a particular party, will not fall within the terms of the Bill.

[Lord Hardie]

The Minister obviously did not hear my speech. I referred to the situation where a local action group had a particular interest—for example, against the closure of a hospital or against, or in favour of, HS2, or other environmental situations. If one candidate supported that view and another candidate was opposed to it, that would be controlled expenditure. Is that to be stopped?

[Lord Wallace of Saltaire]

In the case of Kidderminster Hospital, which I think was one of the examples quoted, there was indeed a candidate who was the Kidderminster Hospital candidate. That of course then becomes a much clearer case.

The hour is late and I should like, if I may, to continue these discussions in the Corridors between Second Reading and Committee.