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

Steve Brine Excerpts

Tuesday 3rd September 2013 Commons Chamber

[Mr Lansley]

I am now 46 minutes into my speech and I am not going to give way again, because I am going to explain the remainder of the Bill’s provisions—[Interruption.] I apologise to colleagues, but I have to complete the description of what the Bill will achieve.

The Bill also introduces a provision whereby third parties will be permitted to spend only up to a certain amount of their controlled expenditure in individual constituencies. That is to prevent a third party from directing a large proportion of its national spending limit at only a small part of the UK, thereby focusing the full force of the considerable spending available to it on a small geographical location. That would, and indeed does, allow disproportionately large amounts of money to distort election campaigns and the political process.

A number of third parties campaign in a way that supports a particular political party or its candidates. That is entirely legitimate, but it must not be allowed to become a vehicle for evading party spending rules. We believe that it is right that the political party should be able to oversee which organisations offer it significant campaign support. The Bill introduces a new measure that will require third parties that spend significant sums campaigning in a way that can reasonably be regarded as supporting a particular political party or its candidates to be specifically authorised by the political party to campaign in that manner. That spending will then be counted towards both the third party and the political party’s spending limits.

The transparency of the regulatory regime is enhanced by the Bill. When third parties campaign to support political parties, expenditure will now be more fully recorded and disclosed. Donations to third parties will now have to be published in advance of an election, rather than after it. Third parties will have to provide a statement of accounts. Those measures can only be good for maintaining public trust in our political system.

The Bill also clarifies the importance of the role to be played by the regulator, the Electoral Commission. The commission will now have a clear duty to monitor spending and donation controls and to ensure their compliance with the law. We want to prevent our political system from becoming one in which unaccountable groups spend millions attempting to influence the outcome of an election. The Bill is an important step towards achieving that, without undermining the ability of third parties to engage more broadly in the political process.

Let me now turn to part 3. Trade unions are influential participants in public life. They have an important role representing members’ interests both with specific employers and in wider public debate. The Government support that role. We also believe it is important that the public is confident that, when a union decides how to exercise its influence, all union members may choose to play a part. That is what the third part of the Bill is about. It will require trade unions visibly to demonstrate that they know who their members are and can contact them. The principle that unions must be able to contact their members is well established in legislation. We are building on an existing duty for unions to maintain an accurate and up-to-date register of members’ names and addresses.

[Steve Brine (Winchester) (Con)]

Will the Leader of the House give way?

[Mr Lansley]

Is it specifically on part 3?

[Steve Brine]

Right on it.

[Mr Lansley]

Very good. I will give way.

[Steve Brine]

It seems perfectly sensible to ask the unions to keep a register of their members, but will my right hon. Friend assure the House that there will be no undue administrative burden on smaller trade unions as a result of the measures in his Bill?

[Mr Lansley]

I am confident that the burden on trade unions will be very modest. As far as the certification officer is concerned, we are talking about only three additional members of staff as a consequence of all this. In future, unions will provide a membership audit certificate to the certification officer alongside their annual financial return. Unions with more than 10,000 members—this helps to answer my hon. Friend’s point about the smallest trade unions—will be required to appoint an independent third party, an assurer, to provide the certificate, which will state whether the union’s systems for maintaining the register meet the statutory requirements. That independent assurance will be important to provide confidence in large and complex membership records.

It will be the responsibility of the certification officer to make inquiries and to appoint an inspector to investigate possible discrepancies, if there are circumstances suggesting that a union has not complied with those requirements. That will complement the existing responsibilities for investigating complaints made by individual members. We expect that in most cases the inspector will be a member of the certification officer's staff, but it could be an expert third party.

The Bill sets out how assurers and appointed inspectors will be bound by duties of confidentiality in their handling of member data. Of course, existing safeguards in data protection and human rights legislation will apply in this case as they do elsewhere. Should the certification officer find a union to be non-compliant with these duties, he will make a declaration to that effect specifying where the union has failed to comply and the reasons for the declaration. In addition, he will be able to make a civil enforcement order, requiring the union to take steps to remedy the issue. However, prior to making a formal declaration and order, the certification officer will give the union an opportunity to make representations.

This is not about making it harder for trade unions to operate. We are not requiring unions to collect more data or change the way in which they keep membership registers. Nor are we amending the requirements on industrial action ballots. The requirement to keep a list of member names and addresses is distinct from information that a union must supply to an employer when balloting for industrial action.