Political Parties, Elections and Referendums (Civil Sanctions) (Amendment) (No. 2) Order 2014

Lord Wallace of Saltaire Excerpts

Tuesday 1st July 2014 Grand Committee

Moved by

[Lord Wallace of Saltaire]

That the Grand Committee do consider the Political Parties, Elections and Referendums (Civil Sanctions) (Amendment) (No. 2) Order 2014.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments

[Lord Wallace of Saltaire (LD)]

My Lords, the Political Parties, Elections and Referendums Act 2000—PPERA, as we all love to call it—was amended in 2009 to give the Electoral Commission certain investigatory and civil sanctioning powers. Those powers were given effect by the Political Parties, Elections and Referendums (Civil Sanctions) Order 2010, as a result of which the Electoral Commission is able to apply civil sanctions against the criminal offences established in PPERA. The full list of criminal offences that have been so prescribed is available at Schedule 2 of the order, but includes offences such as incurring election expenses without authority, exceeding campaign expenditure limits and failing to record donations appropriately.

The draft order before the Committee for consideration seeks to extend the list of offences prescribed in the 2010 order to reflect changes recently made by the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014. I am sure that noble Lords are already aware that Part 2 of that Act amends the non-party campaigning provisions of PPERA. The 2014 Act introduced certain entirely new controls that non-parties must comply with if they wish to campaign during election periods. A non-party’s failure to comply with these new controls currently constitutes a criminal offence. The new controls are limits on targeted expenditure and requirements for weekly donations reports and a statement of accounts.

However, the Act did not provide that the Electoral Commission could impose civil sanctions for breaches of these new rules. Under the Act, a breach of these rules would be considered a criminal offence only. However, the Government believe that a civil sanctioning power in respect of the new offences created by the 2014 Act should be made available to the Electoral Commission. This would be in line with the existing approach to the other offences in PPERA. To enable the Electoral Commission to apply civil sanctions to the new offences created by the 2014 Act, an amendment to the original 2010 order is required, which is what this draft order does.

I will make one further point, which is that it is not proposed that civil sanctions should apply to all the new offences created by the transparency of lobbying Act. Those offences known as “false declaration” offences are not prescribed by the 2010 order, and the order under consideration today does not amend this. False declaration offences are those where a person knowingly or recklessly acts in a way that contravenes the legislation. It is appropriate that such offences remain liable only to criminal prosecution, and the Government do not therefore intend to prescribe the new false declaration offences created by the 2014 Act either.

I assure noble Lords that the regulator, the Electoral Commission, has of course been consulted on the order. The commission supported the policy intention of making civil sanctions available for these offences. If the Motion is agreed, then the order will be made and come into force on 19 September. That is the start of the regulated period for non-parties campaigning in the 2015 parliamentary general election. I beg to move.

[Lord Kennedy of Southwark (Lab)]

My Lords, I thank the noble Lord, Lord Wallace of Saltaire, for introducing the order. I say at the outset that we fully support it and I shall not detain the Grand Committee for long. Civil sanctions are a good way of dealing with breaches such as those listed in the order. I was until recently a member of the Electoral Commission, and saw at first hand how civil sanction powers helped make sure that breaches by the parties were dealt with more effectively.

The only thing I would say to the noble Lord is that these powers must be applied proportionately. In some cases, there may be mitigating or aggravating circumstances when dealing with issues. So far, the commission has been good at dealing with them proportionately. I have heard of many cases in which parties gave good reasons for what had happened and were dealt with fairly. I remember one party—which has no representation whatever in either House—that would not comply in respect of its accounts. An official dealt with that party very skilfully, and the powers of sanction were helpful in getting it to comply and file its accounts properly.

I shall leave it there. I am very happy to support these measures. All I would say is that proportionality is important, and the Government should always keep that under review when dealing with the commission.

[Lord Wallace of Saltaire]

I thank the noble Lord for that. I remind him and anyone else who may read this that the legislation was aimed at the non-party campaigners that have registered in the past two elections. This order gives greater flexibility to the Electoral Commission, which we entirely agree is a well organised and well functioning organisation.