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

Steve McCabe Excerpts

Wednesday 22nd January 2014 Commons Chamber

[Mr Allen]

It is a fact of life that Oppositions become Governments and rapidly leave behind their commitments to help the House to become part of the democratic process. I urge the hon. Gentleman to ensure that the coalition parties’ manifesto processes are clear about the changes that we want to see.

We are now being given only four hours in which to discuss these matters. There was an unprecedented pause in the legislation, albeit only for a few weeks, to allow proper discussion to take place in the second Chamber, yet we are now being given only four hours in which to synthesise that work that happened in the other place. No one would argue that that is appropriate or adequate. We have not even had a chance to discuss the timetable, as the programme motion was not debateable. We have had no chance even to make this point, other than through the generosity of the Chair in allowing me to talk about it now. Technically, the House has not been allowed to debate the inadequacy of having only four hours for debate at the end of this Bill.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I have a petition here from 190,553 people who object to the Bill. Does my hon. Friend think that those people will have any understanding of why the Leader of the House is forcing this business through in less than four hours?

[Mr Allen]

People out there do not have any such understanding, but I will go further and say that even some of the charities and voluntary sector organisations involved do not understand it. Indeed, I will go even closer to home and ask how many Members of Parliament understand how this process has actually worked over the past 24 hours. Do they understand how a Bill can be debated in the second Chamber and then pushed back here and given two working hours for consideration of the work that the other place has carried out at some length? That work, as well as the work of the commission that was set up by people who are annoyed about this process, and all the evidence taking have all gone by the board.

This process is holding the House in contempt, and that needs to be recognised not just by the people in the lobbying industry but by the more than 10,000 organisations under the umbrella of the National Council for Voluntary Organisations. Those organisations come from all parts of the political spectrum. I imagine that every Member in the Chamber is associated with a trust, charity or voluntary organisation that will feel the impact of the Bill. Those organisations have been treated in a way that we should not regard as acceptable.

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[Stephen Twigg]

I very much hope that the hon. Gentleman is correct. I have already said that we welcome some of the changes to the registration and threshold levels, but there is still concern among charities about the impact this change could have and the Lords amendment simply clarifies and improves that element of the Bill.

There is no desire in this House to create a regulatory system that is impossible to abide by. We do not want to stifle charities or the other voluntary and citizens’ organisations that are often the bedrock of our communities with further unnecessary red tape and changes to their accountancy structure. Many such organisations rely on volunteers, but they have to try to cost the time of their volunteers.

I believe that the Lords amendment is a compromise. The Opposition share the preference that the Electoral Commission has expressed. As my hon. Friend the Member for Nottingham North, the Chair of the Select Committee, reminded us earlier, the Electoral Commission said that for the 2015 election it would prefer all staff costs to be removed. The amendment does not go as far as that recommendation, as it would merely count for background staff costs in relation to certain activities that are being brought into regulation.

It is clear that some costs should be accounted for, such as those with an indirect relation to the canvassing of voters. It seems to me that it would not be very difficult to identify those costs, but organising a meeting, travelling to a venue or setting up a press conference might take merely a few minutes and it would be absurd to expect small and medium-sized organisations to have to account for that time, too. We see the amendment as a tidying up exercise that could save valuable time and money for charities and voluntary organisations while maintaining the purpose of transparency and accountability for those activities that relate directly to elections.

When the amendment was considered in the other place, only three peers who were not from the Government Benches voted against it. The Government were defeated, and on that basis I urge them to listen. Lord Tyler, the Liberal Democrat peer and a former long-standing Member of this House, made a powerful case, saying:

“Bluntly, I do not think that anyone cares if a policy officer, whose job for the rest of the year is something completely different, spends a little time booking a room for an election rally, or incurs costs travelling to it…if the regulations go through without us thinking about the implications, they could unnecessarily tie up campaigners in accounting for their time—and, worse still, could deter some from campaigning at all.”—[Official Report, House of Lords, 15 January 2014; Vol. 751, c. 280.]

[Steve McCabe]

Surely the problem is not about the amount of money. The danger is that the Government are completely ignoring the fact that small charities believe that the Government are setting out to tie them up in knots and prevent them from expressing opinions that they might find difficult. That is why this is regarded as an attack on freedom. Is that not the problem?

[Stephen Twigg]

My hon. Friend is absolutely right. That is why throughout our discussion of the Bill we have used the phrase “chilling effect”. There are the direct effects of the legislation, but in a sense the greater concern is the one of which he has reminded us—its broader effect on the ability of civil society and citizens to participate in debates in the run-up to elections.

Let me refer to other contributions in the other place. Lord Cormack—Patrick Cormack, a Conservative Member of this House for 40 years—urged the Government to take this step. He was supported by his Conservative colleague Lord Northbrook. They supported the amendment and argued that it would make life a lot easier for campaigners and would therefore give citizens a voice. I urge the Government to reconsider and, if they will not, I urge the House to stand with the other place on this amendment.

Let me move on to constituency limits. We are supposed to be addressing the issue of big money in politics. Bearing down on third party spending while leaving political party spending unreformed seems to me to be unfair and does not represent the radical reform we are looking for. Just now, the Leader of the House spoke about party spending at the 2010 general election. The biggest third-party spender spent 4% of the amount spent by the Conservative party at the last election—4%. If the Government are serious about taking the big money out of politics, they need to confront their reliance on a tiny number of wealthy donors.

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[Stephen McPartland]

The hon. Gentleman makes a very political point and I want to confine my remarks to the amendments.

Earlier, we heard an exchange between the shadow Leader of the House and the Leader of the House regarding Unison and small local charities. The reality is that we need to stop the trend of large third party organisations—in the United States, they are called super PACs, or political action committees—attacking a small number of 90 to 100 constituencies that determine who wins the general election and will form the next Government. That is something that all hon. Members should be in favour of.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Will the hon. Gentleman provide some evidence for that assertion, which is the most ludicrous thing I have heard this afternoon?

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[Mark Durkan]

As a member of the Political and Constitutional Reform Committee, I shall speak in support of the amendments we tabled, which would further enhance some of the Lords amendments. I welcome the amendments made in the House of Lords and I want to acknowledge that the Government have listened to some concerns. In particular, the Deputy Leader of the House made a visit to Belfast and heard from a number of groups, large and small, about the range of concerns they had. He signalled some of the adjustments that needed to be made and followed through on some of them, but limitations remain on others. People were pleased to have that direct hearing, but they are not necessarily satisfied that the Bill’s current shape and scope allays all their concerns. They are particularly concerned about the Government’s attempt to overturn Lords amendments 26, 27 and 108. That is what is providing the residual apprehension or concern about how things will go.

Some amendments were tabled, on the Select Committee’s behalf, by our Chairman, the hon. Member for Nottingham North (Mr Allen). Some propose to take some of the Lords amendments further and to de-clutter by reducing the red tape and providing a more sensible application and interpretation of the Bill. That is what the amendments are about; they are not about creating any gaping loopholes for big money to surge in and influence election campaigns, or indeed other things.

The hon. Member for Stevenage (Stephen McPartland) said that he had had no word from any of the small charities and other small groups in his constituency. I have had word from a great many, not just in my constituency but well beyond. Moreover, I have heard from no one about big money being thwarted. This is a major worry for groups who want to be involved in positive campaigns—not to influence election outcomes, but, perhaps, to influence people’s input by encouraging them to participate in elections and think and ask about the issues that they entail. Usually, in the year before an election campaign they are encouraging parties to make manifesto commitments.

[Steve McCabe]

In all his research on the Bill, has the hon. Gentleman come across any justification for the restriction to 2% of the maximum spend? Is there a rationale for it, or did the Government pluck it out of thin air?

[Mark Durkan]

I think that it may have been the latter. I have heard no significant or understandable rationale on which I have been able to rely.

While I accept that, in theoretical and intellectual terms, we want to ensure that we are proof against the PAC model in the future, I think that if we really want to prevent big money from influencing election campaigns, we ought to be legislating against what people such as Lord Ashcroft are able to do with their money, and its impact—its targeted impact—on particular constituencies. But of course that is not happening.

As for the legitimate third-party campaigning that we are discussing in the context of Northern Ireland, it is not influencing the outcome of elections, but is serving as a positive additive to politics, and helping to move our politics on. Money is not used to launch rallies aimed at mobilising voting in a particular direction, and encouraging people to vote for this or that party. People are generally encouraged to create hustings in order to improve the quality of debate, and to widen the range of issues that are discussed beyond the usual binary divide in Northern Ireland.

We should not be legislating in the pretence that some big problem or subversive interest is at work, and we should not be legislating in ways that disable the healthy and legitimate engagement in politics that I thought we all wanted to encourage.

Lords amendment 16 agreed to.

Lords amendments 17 and 104 to 107 agreed to.

Schedule 3

Controlled Expenditure: Qualifying Expenses

Motion made and Question put, That this House disagrees with Lords amendment 108.—(Mr Lansley.)