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

Lord Wallace of Saltaire Excerpts

Tuesday 22nd October 2013 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, this has been a vigorous debate with a wide range of opinions forcefully expressed around the House. First, the Government are listening and consulting, and we will continue to do so. We will take this carefully through Committee, and we are concerned to make sure that the Bill as it emerges from this House reassures the very evident concerns, particularly from the charity sector. The noble Lord, Lord Judd, rightly said that the charity sector perceives this as an attack. That is, by and large, a mistaken perception. However, of course we have to reassure people and make sure, as we take this Bill through the various stages, that we have a Bill that we are all happy with as it emerges from this House.

Let me take the three parts in order. First, on the lobbying issue, as a number of noble Lords said, lobbying is a legitimate activity. Indeed, it is central to any thriving democracy and is an almost universal activity. Almost every working day Parliament is being lobbied. Those who had offices on the West Front particularly enjoyed the London Gay Men’s Chorus lobbying us several nights in a row. We wished that they would come back more often. It was one of the most enjoyable bits of lobbying that we have had so far.

Part 1 is intended to focus on professional lobbyists, the skilled and the well paid, those who provide their services for hire. The noble Baroness, Lady Smith, talked about lobbying companies which do not even declare their clients. That is precisely what Part 1 addresses to make sure that lobbying companies declare their clients. That is where we started out in our consultation in 2010-11. I regret to say that the various respondents to that consultation came back with a whole range of discordant and dissentious responses. The Government have decided to take the Australian approach to a lobbying register, which is to have a register of professional and consultant lobbyists, not a universal register.

[Baroness Hayter of Kentish Town]

Will the Minister accept that if a Minister meets lobbyists of that sort, although there may well be a list on a website with their 40 clients, it will not tell anybody which client that Minister was meeting? All it will say is that those are their 40 clients. Anyone will still be in the dark about which client had set up that meeting with the Minister.

[Lord Wallace of Saltaire]

I take the point that the noble Baroness makes. She has said to me off the Floor of the House that this ought to be reinforced by making sure that in the notes of the meeting there is a reference to the subject of the meeting so that those in the press and outside who want to understand what happened are informed which of the clients the meeting was about. This is therefore a step towards transparency. It does not claim to provide complete transparency on all contacts between outside proponents of particular policies and Ministers or officials. If we were to do that, we would find ourselves with a huge amount of information of the sort that the NSA loves to collect for the United States, but might not be beneficial to British politics. If we were to include all lobbyists, as some of the answers to the consultation wished, and included all charity lobbyists, I think that the answer from the charities sector would also be very negative. However, charities do have lobbyists. For example, Oxfam has people who actively lobby the public and the Government. Therefore, we have to be a little careful over how universal one needs to be. That is the importance of starting—perhaps others will want to go further—with a register of consultant lobbyists and of their major contact with the Government.

The noble Lord, Lord Norton, suggested that we should start at the other end by asking all officials and Ministers to register whom they have met. I see no reason why, in a sense, as transparency develops, the two should not come together. I have just filled in my quarterly return of whom I have met, including a number of people who could be described as lobbyists. Indeed, Saferworld was one of those that I reported on for obvious reasons: as I represent the Foreign Office, I talk to Saferworld and other such charities. That is part of what we already do.

The question of how far down the list one should go and whether it should include special advisers has also been raised. That clearly is a question to which we will return in Committee, and I look forward to that debate. However, I am conscious that the major concerns are on Part 2, to which I now turn.

I assure the noble Lord, Lord Phillips, that a Keeling schedule will be available well before Committee for everyone who wishes to look at it. I say with due confidence that, since he first asked me that question, I have discovered what a Keeling schedule is.

[Lord Rooker]

With respect, that is a worry, because that is the kind of thing that the Minister should have been advised about before the Bill was introduced. For the Minister to say now—and I am not being personal about this—that he did not know what a Keeling schedule was when we have a major constitutional Bill, and it is the norm to do it this way and has been for a long time, shows a failure of those who have been advising Ministers.

[Lord Wallace of Saltaire]

It shows my ignorance more than anything. The Bill team has a Keeling schedule, and it will be distributed. Of course, the Bill team has a Keeling schedule—it is part of what Bill teams have to do in preparing the Bill. Since this is a rather complicated amendment of PPERA, that is what we are into.

I stress, as has been stressed by a number of noble Lords, that this is an amendment to PPERA. It is about election law, not about charities law; charities are not the main target and not those mainly affected by it. The most recent Electoral Commission report on this said:

“The Commission believes that, where significant non-party campaigning takes place, this should be transparent and properly regulated ... We think these controls on campaigning that is not explicitly ‘party political’ are a necessary part of the regime. Without them, it would be easy to evade the rules by framing political campaigning in terms of policies. For similar reasons, we do not think the rules should exclude particular types of organisations, such as charities or voluntary bodies, as this would create opportunities for political campaigners to evade the rules and would reduce transparency. However, the necessarily wide scope of the definition of controlled spending makes it particularly important to consider the overall impact on campaigners of Part 2 of the Bill, including the registration thresholds and spending limits”.

That is what we will focus on in Committee—but it is correct that we should include this in the scope of the Bill.

I was quite surprised—

[Baroness Royall of Blaisdon]

As the Minister has just said, rightly, that it is important to look at the effect on charities and campaigning organisations affected by the Bill, why did the Government not consult those bodies before bringing the Bill forward? The Minister said just now that now that they had had their Second Reading they were going to consult. Why did not the Government consult beforehand?

[Lord Wallace of Saltaire]

I am conscious of a number of meetings with ACEVO, the NCVO and a number of other organisations over the past few months—and we are continuing to consult them. So we are not just about to start; we have been consulting.

I was quite surprised that no one had looked at the list of registered third parties for controlled expenditure for the 2010 general election, which seems to be a relevant part of the background. There are 30 of them on the list that I have here; six of them are in the field of animal welfare, which is hardly surprising—and the noble Baroness, Lady Mallalieu, is nodding at me as I say this. There are two major unions. Among others, there is an interesting body called the Young Britons’ Foundation. I Googled several of these bodies just to discover them, and perhaps I can read something for those noble Lords who think that American campaigning has not yet reached Britain. It says that the foundation,

“was launched in July 2003 at a conference of the Young America’s Foundation in Washington, D.C., and it has said that it aims to ‘import American political techniques into the UK’”.

On the most recent knowledge that I have, its advisory board included,

“representatives of the Heritage Foundation … US Competitive Enterprise Institute and American Conservative Union”,

and a number of other, similar bodies.

[Lord Greaves]

I was very confused by the quote that my noble friend read from the Electoral Commission, which refers to “political campaigning”. The existing PPERA and the proposed wording as amended in the House of Commons on Report in this Bill do not refer to political campaigning at all. Clause 26(2)(b) now says that,

“the expenditure can reasonably be regarded as intended to promote or procure electoral success at any relevant election for … one or more particular registered parties … one or more registered parties”,

and so on. This is about electoral campaigning. It seems to me that the dividing line is between general political campaigning on the one hand and electoral campaigning seeking the success or non-success of a particular party or candidate on the other. What my noble friend has just read out seems to muddy the waters. This will be an absolutely crucial discussion in Committee.

[Lord Wallace of Saltaire]

My Lords, I was about to come to precisely that distinction because it seems to me to be the nub of what we will have to discuss when we deal with Part 2. There is a line to be drawn between the promotion of policies and the promotion of the success or defeat of particular parties or candidates. Policing the line between informing and educating the public during a campaign, promoting particular policies during a campaign and, on the other side of the line, supporting or opposing particular candidates or parties during a campaign, is the point on which we need to focus during Committee and Report. I am concerned that this is not an easy line to define. We want to make sure that there is as small a grey area as possible. At the all-Peers meeting, the noble Lord, Lord Dubs, quoted a leaflet which had been put round his constituency the day before he lost an election which had a very large headline saying, “We are not telling you who to vote for”, and then a lot of small print which did. That is the sort of thing that we will have to look at in detail.

This measure is not aimed primarily at charities. Indeed, of the 30 organisations on the list, three are the campaigning non-charitable associated bodies of charities, but none is a charity. Charities should not be caught by this measure. After all, charities law limits how far charities can become involved in partisan campaigning. Charities should be involved in political campaigning. I recommend that noble Lords look at the list to see how far we can come to an agreement on the borderline. The noble and right reverend Lord, Lord Harries, talked precisely about the borderline between current activities and controlled activities, and the chilling effect of having an uncertain definition of that. However, that is where we are. From the discussions I have had with people over the past few weeks, I have the slight impression that a large number of charities had not actually read the Political Parties, Elections and Referendums Act until this Bill was produced. Having looked at the language of that Act, a number of charities are telling us that they are not happy with that language as it stands. We have entered a discussion that we should perhaps have had earlier. The Government started on the assumption that the language of PPERA was fine because we had—

[Lord Lea of Crondall]

My Lords—

[Lord Wallace of Saltaire]

May I just finish my point? We had been through two elections with that language and charities do not appear to have found it difficult. If charities are now telling us that they find that language difficult, clearly we need to have a rather different discussion. I give way.

[Lord Lea of Crondall]

I thank the noble Lord for giving way. He may not be able to answer my next point tonight. However, as I understand it, charities registered with the Charity Commission cannot be so registered if they have political purposes. Therefore, will the noble Lord comment on, or write to me, about what he means when he talks about charities having political purposes?

[Lord Wallace of Saltaire]

I hesitate to go into a definition of politics as the noble Lord, Lord Norton, will immediately correct me. The promotion of particular policies, particularly broad policy areas, is a natural and accepted part of what charities and faith bodies do. That is a normal part of civil society. Part of my puzzlement, in listening to one or two of the speeches tonight, is that civil society is itself broader than the charitable sector. There are campaigning bodies in civil society which are not, and should not be, charities. Charities promote particular ideas, developments and social objectives which are also unavoidably political objectives, but they are not necessarily partisan objectives. That again is the line that we need to draw. I note that the noble and right reverend Lord, Lord Harries, said that charities are already unhappy about PPERA. Having looked at it, there are a number of difficult questions that we need—

[Lord Phillips of Sudbury]

It might be beneficial for all of us if the Minister and his advisers were to say how far the Charity Commission guidelines fall short of what the Bill is intending to do. If there is no significant air between the two, we might all need to know that.

[Lord Wallace of Saltaire]

I accept—and have also had it said to me in the Corridors—that we need to make sure that the guidance from the Electoral Commission, the Charity Commission and the Government are all in very close harmony. That is another area that we are, of course, now looking at.

The time is late. I will come very briefly to Part 3. Again, I recognise what has been said powerfully by a number of noble Lords here with trade union experience. We will come back to this in Committee, so I will say simply that unions are a major and extremely valuable aspect of our economy and our society. They have changed through a number of amalgamations over recent years and the Government consider the question of how accurate the membership lists of major unions are—we are talking about unions with 1 million or more members—is an appropriate point to be regulated. However, I take all the points—

[Baroness Royall of Blaisdon]

My Lords, we are talking about unions with a membership of more than 10,000, as I understand it; that is what is in the proposal, not 1 million.

[Lord Wallace of Saltaire]

However, we are not talking about the smallest unions.

I take the point from, I think, the noble Lord, Lord Whitty, about whether information given to the assurer or certification officer might fall into other hands. That is a large issue of data privacy—this was raised by another noble Lord—which raises broader issues that concern the Government across the board. I will give him my assurance now but I will also check back and make sure that there are cast-iron assurances that data privacy issues will be resolved. We will have—

[Lord Whitty]

I think it was my noble friend Lord, Lord Monks, who raised that point. The Minister has not yet said why the Government are proposing Part 3 of this Bill. There are all sorts of suspicions out there, some of which have been voiced tonight, including by me, but the Government have not told the House why they are proposing this part of the Bill.

[Lord Wallace of Saltaire]

My Lords, the Government are concerned that there is insufficient public understanding when, for example, a union calls a strike vote, that those being polled are those who are currently working. They wish to assure the members and others in society that the lists are accurate. This is not just for unions. Companies are also expected to maintain an accurate register of their members and shareholders and to keep it up to date. This will cover a range of different bodies. I give way once more and then we must finish.

[Lord Lea of Crondall]

Is the Minister aware that that is not the reason given in the explanatory document?

[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.

--- Later in debate ---

[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.

Bill read a second time and committed to a Committee of the Whole House.