Party Funding Debate

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Department: Cabinet Office

Party Funding

John Bercow Excerpts
Monday 26th March 2012

(12 years, 7 months ago)

Commons Chamber
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Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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With permission Mr Speaker, I would like to make a statement on party funding.

As set out in the coalition Government’s programme, party funding in Britain needs to be reformed. The last major attempt at reform came in the cross-party talks between 2006 and 2008, chaired by Sir Hayden Phillips, which I led for the Conservative party. The right hon. Member for Blackburn (Mr Straw) led for the Labour party and the present Parliamentary Secretary, Office of the Leader of the House of Commons, my hon. Friend the Member for Somerton and Frome (Mr Heath), led for the Liberal Democrats. The origin of those talks was a genuine desire on the part of my right hon. Friend the Prime Minister—[Hon. Members: “ Where is he?”]—and Tony Blair and the right hon. and learned Member for North East Fife (Sir Menzies Campbell) to resolve these issues, which were disfiguring the face of British politics. The expectation was that there could be some increase in state funding if there were a cap on donations, but crucially a cap applying to all donations, whatever their source. Those talks came agonisingly close to securing agreement for long-term reform, but in the event agreement proved impossible. That was a serious missed opportunity. Since then, the need for change has become more, not less, pressing. Accordingly, at the last election, all three main parties promised in their manifestos to make progress.

This Government have an explicit commitment in the coalition agreement to

“pursue a detailed agreement on limiting donations and reforming party funding in order to remove big money from politics”.

It was helpful when, in the early months of the coalition Government—[Interruption.]

John Bercow Portrait Mr Speaker
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Order. The Minister for the Cabinet Office is ploughing on manfully—perhaps I should say “personfully”—through his statement, but he should not have to put up with this level of noise. It is not acceptable. We do not want this sort of noise from either side of the House. Let us hear the statement and the response. The House can rely on me to ensure that there will then be a full opportunity for Members in all parts of the House to question the Minister, but let us listen to his statement with courtesy.

Lord Maude of Horsham Portrait Mr Maude
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I am not particularly surprised that the Labour party wants to drown out this statement, because its role in this saga is a shameful one.

It was helpful when, in the early months of the coalition Government, the Committee on Standards in Public Life launched a review. That Committee reported last November. My right hon. Friend the Deputy Prime Minister, with support from the Parliamentary Secretary, Cabinet Office, who is responsible for political and constitutional reform, leads for the Government and, in that capacity, responded to the report. He welcomed the recommendations and confirmed that the report contained a useful guide to the principles and areas that are essential for party funding agreement.

However, the Government could not see a case, at that time of austerity, for additional state funding for political parties. The Committee’s view that an increase in state funding was required meant that its recommendations could not be adopted in full. Instead, as he told the House last month, the Deputy Prime Minister wrote to party leaders asking for nominations to take part in cross-party discussions. Nominations have been received from all three parties. With Lord Feldman, I will lead for the Conservative party. The talks will begin shortly. Events over the last weekend have demonstrated the importance of making progress.

What Peter Cruddas said was completely unacceptable and wrong, and much of what he said was simply not true, as he himself has since stated. As the House will know, all donations to any party headquarters above £7,500 have to be declared to the Electoral Commission and comply with detailed electoral law. These requirements are rightly extremely detailed and demanding, and should be meticulously complied with by all parties. This Government have already gone much further than any previous Government in revealing details of Ministers’ meetings with outside organisations and individuals. My right hon. Friend the Prime Minister has set out this morning that the Conservative party will now go much further. I hope that all other parties—[Interruption.] As the Leader of the Opposition has taken the trouble to come to the House today, I hope that he will set out what his party will do.

What we are now doing builds on the major improvements to transparency in public life that this Government have introduced. We are the first Government to introduce such transparency and the first Government to tackle the problem of lobbying, with our proposals for a statutory register of lobbyists currently out to consultation. We have published more data than any other Government in history about the activities of Ministers and Government Departments.

Let me return to the forthcoming party funding talks. There is a way of solving this problem. Across the House, we broadly know the issues we need to address. We need to look at donations and how to limit them, and we need to look at affiliate bodies. The Prime Minister has once again said that he is ready to cap donations, but only if it is agreed that the cap applies to all donations, whatever their source. We could also look at how to boost small donations and broaden the support base for parties, at the way in which existing state funding works, and at how we might further increase transparency around fundraising activities. The challenge for us all across the House is to make this process work, to reach agreement across all sides, and to deal with the problem of party funding once and for all. I look forward to the enthusiastic support of all parties for this course.

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Lord Maude of Horsham Portrait Mr Maude
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For 13 years the Leader of the Opposition was at the heart of the Labour Government. For 13 years they had the chance to make government transparent. For 13 years they had the chance to reform party funding. For 13 years they did nothing—nothing. And, worse than nothing, they blocked reform, because who was it who stopped the Hayden Phillips reforms going through? It was Labour. The House need not rely on me for that; it can rely on Peter Watt, the then general secretary of the Labour party, who said:

“My primary emotion during the process was intense frustration, because my own party”—

Labour—

“was the biggest block to reform.”

So the right hon. Gentleman should not come here, grandstand and claim the moral high ground. His party has a shameful role in the past. He should come here to say sorry for blocking the reform that was there to be had.

Labour in office gave us the cash for honours affair and a police investigation into proxy donations, and I remind the right hon. Gentleman, lest he forget in his new-found enthusiasm for independent investigation, that the investigation into the David Abrahams affair was conducted not by some independent person but by Lord Whitty, a former general secretary of the Labour party. And now that Labour is in opposition, its donors do not just buy policy—they elect the leader. That is why, after the right hon. Gentleman was elected Leader of the Opposition, the first thing he did was to go up to the leaders of Unite, put an arm round their shoulders, and say a warm, heartfelt “Thank you.”

We have heard about cash for policy, and cash can buy policy, but not on this side of the House. It was shocking recently to discover that votes can be decided on the basis of money paid and a cheque cashed. In fact, Labour, back in 2004 in the Warwick agreement, drew up its election programme on the back of an agreement to have union donations that would fund its campaign, so the right hon. Gentleman should not come here and lecture us about cash for policy, because Labour Members are the past masters at it—and look where it has got them. The shadow Health Secretary—he is over there—tabled amendments pushed by his union backers. [Interruption.] The shadow Justice Secretary could not confirm Labour’s own—[Interruption.]

John Bercow Portrait Mr Speaker
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Order. [Interruption.] Order. [Interruption.] The Minister should resume his seat, which he has done. First of all, there is far too much noise, a lot of it, but not all, from a sedentary position; and, secondly, I simply say—[Interruption.] Order. I simply say to the Minister that the terms are inevitably wide, but I know that he will want to respond to the questions asked in conformity with the convention governing ministerial statements and that he will want to make a statement of the policy of the Government.

Lord Maude of Horsham Portrait Mr Maude
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It is the policy of the Government that there should be cross-party discussions about reform to party funding. It is very important, as we go into this, that we understand the basis on which those important discussions are going to take place, and each party’s background in that respect.

I was just commenting on the shadow Justice Secretary’s inability to confirm Labour’s policy because he was “checking with the GMB”, which, by the way, gave the Labour party over £1.5 million while the Leader of the Opposition was its leader—and we know that when he pulled a sickie saying that he was too ill to attend an NHS rally, he was in fact meeting his very own six-figure donor at Hull City.

We have heard a lot about Labour and Mr Andrew Rosenfeld. I know Mr Rosenfeld; I met him when I was party chairman, and I can tell you, Mr Speaker, that we did not take his money. The Prime Minister has said what the Conservative party is doing to put its house in order. We have already been far more open than Labour ever was when it was in office. I hope that in the course of these discussions the Leader of the Opposition will tell us what he is doing to open up the Labour party. Will he commit to publishing details of every single meal that he has had with donors? Is he going to own up about the dinner with Roland Rudd, whose attendees he promised to reveal months ago but still has not? Will he reveal details of all the meetings with Labour donors in No. 10 that Tony Blair and the previous Prime Minister had when in office? Will he commit to publishing any shadow Cabinet contact with Labour’s union donors? It is no good expecting a list from the Leader of the Opposition. We know that there would be one name on it again and again: Len McCluskey, Len McCluskey and Len McCluskey.

None Portrait Several hon. Members
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John Bercow Portrait Mr Speaker
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Order. I am keen to hear questions from Members of the House. I hope that there will be appropriately brief replies from the Minister, because the purpose of the exercise is for Members to question the Minister, rather than for accusations to be flung across the House from both sides.

Tony Baldry Portrait Tony Baldry (Banbury) (Con)
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Does my right hon. Friend agree that what all political parties need is for more people to join them? If we had a lot more members of political parties, Labour would not be so dependent on the trade unions and other parties would not be dependent on significant donors. We all have an incentive to encourage more people to join all of us, rather than to engage in this yah-boo politics, which simply puts people off joining political parties.

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Aidan Burley Portrait Mr Aidan Burley (Cannock Chase) (Con)
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Does the Minister have a view on whether it is an appropriate use of taxpayer-funded resources for the Leader of the Opposition and his shadow Cabinet to meet their union funders in their parliamentary offices?

John Bercow Portrait Mr Speaker
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Order. Look, this has had to be relatively wide, and I have tried to be flexible to Members in all parts of the House, but that is no responsibility of the Minister. He might be pleased or displeased about that, but it is nothing to do with him.

Jonathan Ashworth Portrait Jonathan Ashworth (Leicester South) (Lab)
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The Paymaster General talks of transparency, yet casually dismisses out of hand the prospects of an independent inquiry. Given that we have heard some very serious allegations about donors’ access to the No. 10 policy unit, which the Minister admitted a few moments ago is staffed by career civil servants, he is obviously confident as the Minister for the Cabinet Office that nothing untoward has gone on. Why not have an independent inquiry so that we can all be reassured and share his confidence?

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Lord Maude of Horsham Portrait Mr Maude
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For a moderniser, I am rather old-fashioned in this respect, and I think that one man, one vote is not a bad way to go. [Interruption.] I mean one person, one vote. I may not be the most complete moderniser. [Interruption.]

John Bercow Portrait Mr Speaker
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Order. The Minister corrected himself perfectly clearly. I heard him; we all heard him.

Kevin Brennan Portrait Kevin Brennan (Cardiff West) (Lab)
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The Prime Minister, as Leader of the Opposition, responded to the report mentioned by my right hon. Friend the Member for Manchester, Gorton (Sir Gerald Kaufman), entitled “Conduct of Mr David Cameron” and relating to the 2006-07 Session, by saying:

“I would like to assure the Committee”

—in relation to lunches for donors held in his parliamentary office—

“that this will not happen again. I will not hold lunches for members of the Leader’s Group in my Parliamentary office in the future, nor will my office be mentioned in any promotional literature.”

Having had to make that apology to the House, should not the Prime Minister have been extra careful to obey the ministerial code and ensure that there could not even be any possible perception of impropriety in the dinners that he held on public property at No. 10 Downing street?

Lord Maude of Horsham Portrait Mr Maude
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The flat that the Prime Minister and his family occupy is private property. [Interruption.] It is their private residence, and the Prime Minister has not in any way—[Interruption.]

John Bercow Portrait Mr Speaker
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Order. The question has been asked, and the answer must be heard.

Lord Maude of Horsham Portrait Mr Maude
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It is a private residence, and the Prime Minister has not in any way broken the ministerial code.

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Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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Is the Minister aware of the failure of one of his Secretaries of State to register a meal he had with the lobbyist Bell Pottinger this year on the basis that on the day in question he was digesting with his private stomach and not his ministerial stomach? Is not the distinction a false one? Nobody would give £250,000 for a social, private chat with the Prime Minister, but they would pay it if they were seeking access and influence.

John Bercow Portrait Mr Speaker
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Order. Questions about registration are not matters for the Minister as responsibility for those lies elsewhere, but I wanted to hear the hon. Gentleman out. I do not think it is a matter for the Minister.

Lord Maude of Horsham Portrait Mr Maude
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I do not think it is, but I am prepared to have a go if—

John Bercow Portrait Mr Speaker
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The Minister does not think it is either; we are in happy accord.

Jason McCartney Portrait Jason McCartney (Colne Valley) (Con)
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I have to make a declaration of interest as a former trade union representative in Yorkshire. The Unite union has just announced that tanker drivers have voted to go on strike. Does my right hon. Friend agree that Members in this House should be able to condemn such actions without fear of losing a donation?

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None Portrait Several hon. Members
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John Bercow Portrait Mr Speaker
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Order. May I remind Members that they are expected to use their mobile devices discreetly and without impairing the decorum of the Chamber? I say gently to the hon. Member for Chesterfield (Toby Perkins) that he should not stand up, seeking to catch my eye, while fiddling with his device.

David Anderson Portrait Mr David Anderson (Blaydon) (Lab)
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I promise not to fiddle with my device, Mr Speaker.

Peter Cruddas was reported yesterday giving, as an example of how to influence policy, discussion of the Tobin tax with the Prime Minister the day before he met Angela Merkel. Is that true? Did that conversation take place and, if it did, what role was Peter Cruddas playing—treasurer of the party or private business man?

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None Portrait Several hon. Members
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John Bercow Portrait Mr Speaker
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Order. I thank colleagues for their co-operation, which has enabled 77 Back Benchers to question the Minister in 61 minutes of exclusively Back-Bench time.