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

Lord Mann Excerpts

Tuesday 10th September 2013 Commons Chamber

[Tom Brake]

On the human rights aspects, some Members have questioned whether the Bill is compliant. The Government’s assessment is that we consider all the spending limits in the Bill to be compatible with article 10 and have taken into account the amount that the third parties are permitted to spend under the reduced limits and the amount that they spend now. Clearly this has been given active consideration by the Government, as the hon. Gentleman would expect.

The main purpose of clause 26 is to align the activities that count as controlled expenditure for political parties and third parties. At present, the activities that count as controlled expenditure depend on whether we are referring to a political party or a third party. This means that spending by recognised third parties to assist a political party with the cost of an event would be captured as political party spending. However, if the recognised third party were independently to organise such an event itself—perhaps supporting that same party—such spending would not be caught. That highlights why we are trying to ensure that these two definitions—for third parties and for political parties—are brought into line.

We agree with the Electoral Commission that the current variation in what constitutes controlled expenditure for a political party and for a recognised third party is a potential gap in the regulation of spending in the UK elections, hence the intention behind clause 26. I believe that aligning the definition of controlled expenditure is a reasonable and sensible measure. However, to achieve this, the current definition of election materials needs to be revised. [Interruption.] I hope Members will let me finish what I am saying before trying to intervene. At present, recognised third parties incur controlled expenditure in connection with the production or publication of election material that is made available to the public. As a result, the Bill proposes to replace “election materials” with “for election purposes”; as we are aligning the activities with those of parties, we are also aligning the language of the test.

As we have said, the Government do not believe that we are significantly changing or widening the present test. Controlled expenditure would be incurred only where an organisation is promoting or procuring the electoral success of a party or candidate. However, I am conscious, as are the Government, of the concerns raised by right hon. and hon. Members that charities and voluntary organisations will be caught by the proposals in clause 26 and that the new language leaves room for ambiguity. This is not the Government’s intention.

[John Mann (Bassetlaw) (Lab)]

Will the Minister confirm that what he and the Government are proposing is that if a charity puts out a leaflet saying “Vote for people in favour of animal welfare”—I have voted recently in favour of animal welfare—and if, as happened at the last election in Bassetlaw, the Conservative party unwisely and unsuccessfully spends £250,000 sending direct mails to my electorate with pictures of some southern politician, the Conservative party will be able to do that but the charity will not?

[Tom Brake]

On the latter point, the hon. Gentleman will be aware that the political parties have sought to get an agreement on party political funding and that that was not possible. He can speculate on where the blockage for that was. On the question of the charity, I can assure him that if his charity campaigned in the run-up to the 2010 general election, we will ensure that it has the same level of clarity about what and how it can campaign as it did then. I hope that he will acknowledge that some of the concerns expressed today about the uncertainties for charities about what they can and cannot do exist under the present legislation. Those charities already have discussions with the Charity Commission and the Electoral Commission, under the present legislation, about what they can and cannot do

[John Mann]

So to confirm, the right hon. Gentleman is saying that the Conservative party could spend that money, which was wasted in Bassetlaw—or, indeed, it could spend it against him, very personally and directly—but that if a charity campaigned on how he or I voted, and if it persuaded us in the year running up to an election and then used its resources to e-mail its supporters or members, who then e-mailed us to congratulate us on how we voted, it could be caught out by the law.

[Tom Brake]

We could continue this rather unfruitful dialogue, or I can restate that, whatever the charity to which the hon. Gentleman refers did in the run-up to the 2010 general election, we will ensure the same clarity about what it can do in the run-up to the 2015 general election, and there would be no difference.

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[John Mann]

Given what the Minister has just said, will he confirm that if a church or a synagogue were to organise an election hustings but chose explicitly to exclude a fascist candidate, that would be deemed to constitute electioneering against that candidate and would fall entirely within the remit of the Bill?

[Tom Brake]

That is the kind of issue that can be taken up with the Charity Commission and the Electoral Commission under existing legislation to establish whether that particular activity constituted electioneering. Nothing that we are proposing would affect that.

The amendments tabled by the hon. Member for Nottingham North seek, as previous amendments have done, to strike a balance between the reasonable intent of expanding the range of activities that incur controlled expenditure, and addressing concerns over the activities of charities and voluntary organisations being caught. Amendment 131 seeks to revise the definition of “for election purposes” as activity that can reasonably be regarded as promoting or procuring the success of a party or candidate. As the Government have indicated, we support the principle of that aim, and we will table amendments on Report which I hope will address that concern to the hon. Gentleman’s satisfaction.

A further amendment tabled by the hon. Gentleman proposes that donations by a third party to a third party coalition group should count towards the donor third party’s spending limits. That seems to suggest that such a grouping would register as a separate, new third party and be subject to the wider controls of the Political Parties, Elections and Referendums Act 2000. The intention appears to be to repeal section 94(6) of PPERA. That provision stipulates that when two or more third parties work together as a group or coalition in pursuance of a common plan, the whole of the expenditure they incur as part of that coalition must count against each third party’s spending limit separately. However, the drafting of the amendment would not explicitly repeal section 94(6). The amendment also fails to consider that removing the existing provisions on acting in concert would remove a key anti-avoidance measure from PPERA. If total spending by a group of third parties acting as part of a common plan was not counted in full against each individual third party’s limits, it would allow third parties to form many coalitions on single issues in order to evade their spending limits. That would remove a vital safeguard from the integrity of the rules.

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[Jacob Rees-Mogg]

Even this Parliament did not exist under the benign reign of the Empress Pulcheria, so I am afraid that I am unable to propose doing that.

The purpose of my amendment, which I think fits very well with the clause, which I support, is to limit the ability of people in receipt of public funds to intervene in elections, particularly general elections. In this country we do not have state-funded political parties. We have Short money and Cranborne money to help the parliamentary activities of Opposition parties, but we have consistently decided that the state would not fund political parties and that they would instead be funded by private donations, trade union donations and business donations. It therefore seems to me to be completely wrong for third parties that might depend on subventions from the state for a large part of their income to be able to campaign as third parties in general elections.

[John Mann]

Will the hon. Gentleman let us know what he has against the Church of England, because this brutal amendment would particularly hurt the Church in its desire to host election rallies, hustings and so on?

[Jacob Rees-Mogg]

It would not in any way affect the Church of England and, anyway, should the Anglican Church intervene in elections, that would be a constitutional impropriety. It has long been the case that it is thought improper for peers to involve themselves in general elections. Members will recall that Lord Salisbury would not intervene for that reason; he let others campaign for him. It would not be constitutionally right for bishops to intervene in general elections. The Church of England is not affected by my amendment and it is not, as a general rule in its putting forward of the gospel, getting public money.

[John Mann]

I am sorry to disabuse the hon. Gentleman, but if the Church of England or other religious bodies host any kind of hustings and exclude, say, a fascist from them, they will be caught not only by the Bill, but even more so by the hon. Gentleman’s amendment, because those bodies receive public funding. Local church buildings were given specific amounts in the last Budget.

[Jacob Rees-Mogg]

The hon. Gentleman is simply wrong. We heard during the debate on the previous clause that if a third party invites some but not all of the candidates to a hustings meeting, that may be part of the election expenses of the people involved. The Bill makes no change to that situation. It has always been a difficulty. It is an issue at every election and rightly so, because it would be entirely arbitrary for third parties to decide which party they liked and which they did not.

[John Mann]

Remarkably and unusually—perhaps uniquely—the hon. Gentleman has not done his homework. This Bill expands the definition of what constitutes expenditure and his amendment worsens it further and particularly and brutally picks on the Church of England more than any other organisation by hitting it with bureaucracy and the inability to host political events.

[Jacob Rees-Mogg]

Again, I am in disagreement with the hon. Gentleman, who, surprisingly, I often agree with about many things. The amendment does not change in any way the definition of election expenditure. It leaves it as it is set out in the rest of the Bill. As I have said, that definition leaves unchanged the situation for people hosting hustings meetings. What I am doing makes not one iota of difference—not one jot of change—to the Church of the England. It will still be able to host meetings in churches and it would still be in difficulties if it decided not to invite particular candidates. That is quite right, because at the heart of democracy is the notion that candidates should be treated equally.

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[Jacob Rees-Mogg]

I am more than happy to say that this is the tip of the iceberg and that as the Titanic steams towards that iceberg, it is about to emerge to cut a swathe through its side. I firmly believe that it is absurd for the taxpayer to dish out money that is then spent paying lobbyists to lobby the Government. That is not why hard-pressed taxpayers pay income tax, VAT and other duties.

[John Mann]

I appreciate that the hon. Gentleman is relatively new to the House. Let me point out to him that British Telecom provides assistance to the established political parties that it does not provide to independent candidates. Passing clause 27 with his amendment would therefore mean that British Telecom would be caught by the provisions of the Bill.

[Jacob Rees-Mogg]

As an established candidate before I was elected in the last election, I did not receive any help from British Telecom. I had no idea that British Telecom was funding the campaigns of candidates up and down the country. If that were a purely commercial activity, it would be mistaken in doing so because it would alienate half its customers who would dislike the party that it decided to support.

We have heard throughout these debates Opposition scaremongering about all these third parties lined up waiting to support individual candidates, with the question of whether that is against charities law or constitutionally improper being cast to one side. That is being brought back in the context of this clause. It is absolutely clear from the Bill, from what the Minister has said and from the law as it currently stands that these bodies—charitable bodies, in particular, but also firms such as British Telecom—are not going to be third parties because they do not and, indeed, should not intervene directly in the election of individual candidates or in supporting individual parties.

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[Jacob Rees-Mogg]

I would be shocked if Atos wanted to campaign. The idea that it should become a third party and campaign in seats is a monstrosity. Atos would be covered if it wanted to register as a third party, which is highly unlikely.

[John Mann]

Will the hon. Gentleman confirm that, if he attends and is photographed at a garden party hosted by a landowner who is also a farmer receiving public funds during an election period, the expenditure will be caught by the amendment and the Bill?

[Jacob Rees-Mogg]

The hon. Gentleman has a wonderfully vivid imagination and conjures up increasingly absurd scenarios that will obviously not be caught by the Bill.

[John Mann]

The hon. Gentleman would have been caught by his amendment. Is it not the case that he took great pleasure in being photographed repeatedly at such events held by major landowners when fighting, quite legitimately, for his seat? Those who host such events would be caught by the amendment, so his proposal is almost suicidal.

[Jacob Rees-Mogg]

The hon. Gentleman assumes I have a much more salubrious social life than I have. I wish I constantly enjoyed a round of garden parties during general election campaigns. I am sorry to disappoint him that that is not how life is in North East Somerset. I am afraid that the picture he conjures is false. That situation does not arise under the Bill. Ingenious though his vision is, it does not get away from the fundamental point that Governments have a duty to spend taxpayers’ money carefully. They also have a duty of trust to ensure that taxpayers’ money is not misspent on purposes for which it was not intended. The Government, who are very powerful when in office, have a particular obligation not to fund their friends who can then use the money they receive to support the Government’s efforts to remain in office. That is a risk that the Opposition have pooh-poohed, but it is a real risk.

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[John Mann]

On unintended consequences, has my hon. Friend considered the implications of the Oldham East and Saddleworth election petition judgment, whereby the number of votes influenced by the action was not a consideration? By implication, the amount of spending by which one might breach the rules would not in itself be the issue; rather, it would be whether there had been a breach. The complexity of the rules could lead to election petitions and to elected Members being thrown out of the House.

[Angela Smith]

I thank my hon. Friend. What he said provides further evidence to show how this Bill was not properly thought through before it was brought before us. It shows, too, the amount of work that should have been done and the issues that should have been sorted out before it was brought here.

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[Mr Allen]

I hope that as we proceed—and it should not be forgotten that we are only at the second stage of the process, given that there was no pre-legislative scrutiny—we shall be able, bit by bit, to pull the Bill back into some sort of rationality. I do not expect it to be perfect, and I think that we shall need to revisit it in a year’s time, but I also think that we should put our shoulder to the wheel, as our charities and voluntary organisations are asking us to do. We do not have much choice: we should do the right thing by them. I hope that as the Bill proceeds through its various stages, there will be a number of opportunities for us to ensure that it is, if not a masterpiece, at least something that will tumble along rather like a wagon that has square wheels but is travelling in roughly the right direction.

[John Mann]

Has my hon. Friend’s Committee had an opportunity to consider the ramifications of the electoral judgment in Oldham? Everyone is concentrating on the impact on charities and third parties, but we should also consider the impact on candidates. If a third party were to spend a penny more than was allowed on promoting a candidate, an election petition would succeed. The ruling on the election petition at Oldham was based on a precedent 100 years ago. Is it not possible that election petitions, whether valid or not, will be issued regularly on the basis of a few pence?

[Mr Allen]

The simple answer to my hon. Friend’s question is no: the Committee has not had time to look at those matters, and neither has anyone else. The unfortunate fact of the way in which this process was rushed through—the Bill was presented the day before the House rose, and was given a Second Reading the day after it reconvened—did not allow for any of the sensible accountability that the House should expect.

My hon. Friend has, however, made an excellent point. Indeed, excellent points have been made from all sides throughout the debate. I think that we should value what Members can bring to bear on this process, and I think that if the Government care to listen—and they are starting to listen—we will end up with a much better Bill.

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[Charlie Elphicke]

My particular concern about the state funding of charities and outsourcing of services is that they should not be in a position to use that money to lobby for more Government funds. The third sector’s increasing reliance on Government largesse has provoked lots of discussion and caused considerable concern. Critics have accused Governments of using statutory funding to silence belligerent charities or to politicise good causes.

“Guido Fawkes” says:

“A charity that relies in the main part on taxes is no more a charity than”

a lady of the night

“is your girlfriend.”

On the serious issue of lobbying for more money, we should be cautious and ensure that it is not misspent and that the regulation of lobbying should catch up with the fact that the third sector has changed dramatically in recent years and, indeed, that the historic restrictions on political campaigning and political involvement by charities, on which the Charity Commission used to be very firm, have been relaxed.

[John Mann]

Could the hon. Gentleman give one example?

[Charlie Elphicke]

Does the hon. Gentleman want an example of how a charity would be affected by the Bill?

[John Mann]

Could he name one charity that is using public funds to lobby in the way he describes?

[Charlie Elphicke]

I have considerable concerns about Shelter, which provides not shelter but advice and which is often engaged in campaigning that many Members would view as political.