European Union Referendum Bill

Lord Jay of Ewelme Excerpts

Wednesday 18th November 2015 Lords Chamber

Moved by

[Lord Jay of Ewelme]

14: Schedule 1, page 22, line 34, at end insert—
“Prohibition on use of impermissible funds to meet referendum expensesFor the purposes of the referendum, the following section is to be treated as inserted after section 119 of the 2000 Act (control of donations to permitted participants)—
“119A Prohibition on use of impermissible funds to meet referendum expenses
(1) Any money or other property received by any individual or other body, at any time, from a person who is not at the time of its receipt a permissible donor falling within section 52(2) or a person falling within paragraph 6(1A) of Schedule 15, must not be used to meet any referendum expenses.
(2) Any person who allows the use of such money or property as set out in subsection (1) to meet referendum expenses shall be guilty of an offence.
(3) Where a person is charged with an offence under subsection (2), it shall be a defence to prove that the person was unaware that the money or property was not received from a permissible donor.””

[Lord Jay of Ewelme (CB)]

My Lords, Amendment 14 is a technical and—as I reassured the noble Lord, Lord Hamilton, in advance—neutral amendment, but nevertheless an important one. Its effect would be to clarify that funds from an impermissible source, whenever received, should not be spent on referendum campaigning.

The amendment is supported—indeed, encouraged —by the Electoral Commission, which has identified a clarification that is needed in the provisions designed to stop donations from foreign sources being spent on the referendum. My amendment is designed to address this.

As background, the Electoral Commission has come to the view that the controls in the Bill, which flow from the usual PPERA regime and which prevent campaigners accepting donations from foreign sources, come into effect only at the point the campaigner registers with the commission to be a permitted participant in the referendum. In practice, this means that there may be no control on the sources of funding a campaigner receives before it registers with the Electoral Commission, even if those funds are then used for campaigning during the referendum.

My amendment is designed to make clear that a campaigner cannot use any money for its referendum campaign from a source that would otherwise be impermissible under the PPERA regime. That, of course, includes donations from foreign sources. Without this clarification it would be possible for a campaign organisation to receive significant donations from foreign sources before it registered as a permitted participant. That money could then be spent in its entirety on campaigning during the referendum period. As I said, the amendment is designed to remove that risk.

This is a technical, neutral but important amendment that will help reduce the risk of accusations after the referendum that one side or the other has behaved improperly. I beg to move.

[Lord Forsyth of Drumlean]

My Lords, this seems a very sensible amendment. I was going to try to save time by asking the noble Lord before he sat down whether “foreign sources” includes the European Commission and the European Union. I will give way to the noble Lord so that he can intervene and tell me the answer.

[Lord Jay of Ewelme]

It may do—the Minister will be able to answer that question when she comes to sum up the debate.

[Lord Forsyth of Drumlean]

Because it seems to me that if it did not include the European Union and the European Commission, it would make something of a nonsense of the argument that he put forward. Perhaps my noble friend could indicate what the position is.

--- Later in debate ---

[Lord Jay of Ewelme]

I am very grateful to the Minister. I think there is an issue here but I am grateful for her commitment to look into it and particularly to focus on the need for transparency. In the light of that commitment, I am happy to withdraw the amendment.

Amendment 14 withdrawn.