Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill Debate
Full Debate: Read Full DebateWayne David
Main Page: Wayne David (Labour - Caerphilly)Department Debates - View all Wayne David's debates with the Leader of the House
(11 years, 1 month ago)
Commons ChamberWhat a mess! In 12 years in this House I have never seen such an incoherent, poorly thought out, badly drafted Bill. The whole Bill is confused and contradictory, but I have to say that part 2 is woeful.
In this group of amendments to clause 26, we see a wide range of concerns that highlight the genuine breadth of concern with the proposed legislation. Let me remind the Committee that the Bill has had no pre-legislative scrutiny and that there was no attempt by the Government to consult the many organisations that will be affected. There was no prior consultation with the devolved institutions or even the Electoral Commission, which will have the unenviable task of ensuring that the Bill is implemented properly. Like the Electoral Commission, we believe there is a need to review and update the UK’s party and election finance laws. The Electoral Commission has made 50 proposals for change, but have the Government had any dialogue with the commission? The answer is no. They have simply pulled out of a hat these half-baked, ill-thought-out proposals.
We have just heard that the Government will bring forward new wording on clause 26. It would be helpful if my hon. Friend the Member for Caerphilly (Wayne David) encouraged the Minister to get to his feet and tell us whether he will do this time what he failed to do the last time, which is consult those affected before the wording is put before the House. Will my hon. Friend also allow us to correct the misapprehension, I am sure, of the hon. Member for St Ives (Andrew George), who said that the NCVO is now satisfied with the discussion it had on Saturday. If he reads the briefing that has been sent to Members today, he will realise that that is far from its position. It still has many anxieties regarding clause 26, let alone the even more important clause 27, which we will come to shortly.
Order. May I say that interventions are becoming somewhat long? To make sure that every Member is accommodated, I will cut the length of interventions.
My hon. Friend the Member for Nottingham North (Mr Allen) the Chair of the Select Committee, has almost taken the words out of my mouth. He makes some good points.
Before I focus on my hon. Friend’s apposite comments, I would like to stress the fact that the Bill was published just before the summer recess. It is to the credit of the Political and Constitutional Reform Committee and its Chair that during the recess it sat in special session to consider the Bill. The Chair and other members of the Committee have come forward with a number of constructive amendments—amendments 132 to 134—on a cross-party basis. I am sure hon. Members will have noticed that during the recess their e-mail boxes were inundated with hundreds of e-mails from 200-plus organisations and charities ranging from Oxfam, Friends of the Earth, Save the Children and the British Legion.
As a relatively new Member, I agree that we have had a huge amount of representations from the public—this is the issue on which I have had most contact from the public. Does my hon. Friend share my view that those representations are almost universally against the proposals, which are believed to be rushed and inadequate?
Yes, my hon. Friend is absolutely correct. The wealth of concern expressed by voluntary organisations and charities across the board has been spectacular. They are all desperately concerned. They are drawn from civil society and are concerned that the Bill will undermine their ability to campaign on, and even raise, important issues in the run-up to general elections and other elections.
I would like to correct the intervention by the hon. Member for Nottingham North (Mr Allen). The NCVO indicated to me that it was to an extent reassured, and Stuart Etherington said the change in the Government’s position was tantamount to a significant step in the right direction. That does not mean, and I did not say, that the NCVO and the charitable sector are now completely happy with part 2 of the Bill—they most certainly are not.
I will refer specifically to the NCVO position and what has happened in the past few days, but I want to make this point first. There has been a groundswell of concern over the summer. Just a few days ago, before the NCVO meeting, the Leader of the House responded to concerns by saying, “Don’t worry, you’ve all got it wrong. We are absolutely certain that we are right and you are all wrong. This won’t affect charities and voluntary organisations at all.” That was the Government’s line. On Friday, as has been said, he changed his tune and indicated to the NCVO that there would be a concession. I would like to know what precisely the concession will be. The Deputy Leader of the House wanted to intervene a moment ago. Perhaps he can say precisely what the concession will be.
I thank the hon. Gentleman for giving way. I thought it would be useful if he had on record what Stuart Etherington from the NCVO said in relation to clause 26—and it relates to clause 26 only, not to other clauses:
“I am pleased that the Government has listened to and significantly met the concerns of charities and community groups. I understand the Government’s intention was not to make their normal work subject to this regulation. We will work closely with the Government and the Political and Constitutional Reform Committee in order to deliver this intention.”
I am a little afraid that that might mean that the hon. Gentleman has to rewrite his speech. There is a clear undertaking from the Government to work with the NCVO to ensure that it, and indeed my hon. Friend the Member for Caithness, Sutherland and Easter Ross (John Thurso), are happy about clause 26.
I read the press release issued on Friday and I had discussions with the NCVO only this morning. It has issued a brief that updates its position, saying clearly—as I do—that it welcomes this movement, but that the Government have a heck of a long way to go. There is nothing to stop the Government today putting forward, on the Floor of the House, a written commitment to give us an outline of what they want to do. All we have had is a nod and a wink and a promise.
I am looking at the legal advice written by Helen Mountfield QC for the NCVO. In relation to controlled expenditure, she states:
“The real vice of the new definition is the lack of clarity, and the consequent lack of certainty as to when expenditure…ought to have been included”.
That sets out the position clearly. It is very uncertain what is going to happen when this becomes law. We will then have a plethora of court cases and the law will be decided by precedent.
My hon. Friend puts his finger on an important point that highlights the lack of clarity and the confusion at the heart of the Bill. We have heard the fine words of the Deputy Leader of the House on what the Government intend to do, but will he give us this commitment: will he put in writing, by means of a draft amendment that he can amend if necessary, what he has said to the Committee today? Will he provide that substantive material? Please reply.
I thank the hon. Gentleman for that offer. I am sure he would prefer that the Government’s legal counsel ensured that they work to build up the amendment—on which we have already given an undertaking to work with my hon. Friend the Member for Caithness, Sutherland and Easter Ross and, as Stuart Etherington has indicated, the NCVO—to ensure that, on Report, the fundamental concern of charities over the confusion that they say the Government have introduced into the definition of election materials and election purposes will be addressed.
I respectfully remind the Minister that the Bill was literally drafted on the back of an envelope in a couple of days. All we are asking is that the Government give us a draft amendment, subject to all the caveats that they want to put in about legal advice and so on, so that we have, in writing, the Government’s commitment. Otherwise many people will think that these are simply hollow words from the Government.
Does my hon. Friend think that the Government are advertising their incompetence by presenting us with some promise that, on Report, they will change the Bill, while suggesting that we all waste our time today dealing with a Bill that might be very different on Report? Why on earth do the Government not try to amend the Bill now?
My hon. Friend makes a very good point. Clause 26 and schedule 3 are absolutely central to the Bill because everything follows on from them. If the Government do not get this right and do not sort out what they are going to do here, everything that follows, frankly, does not make much sense.
My hon. Friend is making an extremely strong case. Is it not exactly this lack of clarity, confusion and chaos that will act as a net dampening effect on the campaigning activities of charities? No matter what detail comes out during this debate, a lot of them will look at this Bill and wonder whether they can carry on campaigning as they have done in the past.
That is a fundamental concern. Due to the intricacies of the Bill and its convoluted nature, we suspect that many charities and campaigning organisations will say, “How on earth can we comply with this in all reasonableness? The best thing to do is not to do any campaigning at all.” That is our concern.
My hon. Friend will have noticed, as we all did, that the Minister said that draft amendments will be tabled on Report, which fortuitously is a few weeks away due to the parliamentary timetable. I am sure that my hon. Friend will agree that we do not want those amendments to appear on the day of Report, or a couple of days before. They should be produced well in advance. Would it not be right for the Minister to give an indication of when the draft amendments will be tabled?
My hon. Friend makes a very good point. We would seriously hope that the Government are learning lessons from their very obvious mistakes. One of the most obvious mistakes is the complete absence of any prior consultation. Even at this stage, we genuinely hope that the Government will learn the lesson. As the Electoral Commission has said, having apparently promised this concession, the Government need to consider how best to clarify the position of controlled spending before putting any firm amendments to Parliament.
Surely it is now appropriate for the Government to withdraw the Bill in its entirety and open meaningful discussions with all who are affected by it. It is surely sensible to extricate Parliament from the mess the Government have got it into. If the Government were to do this, we as the Opposition would play a constructive role in helping to revise electoral law, which needs to be revised, so that big money is taken out of politics. But let me be clear: the Bill cannot be put right simply by modifying the definition of electoral activity in clause 26. There is a need carefully to look at schedule 3 and at all the categories listed therein.
Amendment 167, in my name and that of my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith), refers to staff costs. The Government have said that they wish to equate the rules of third sector spend with the rules on political party spend. Yet in schedule 3 voluntary organisations will have to take into account staff costs even though that is not the case for political parties.
My hon. Friend makes a very good point. Not only is the Bill a burden on individual organisations, it is a burden on them collectively. When organisations co-operate and co-ordinate their plans, the total spending of those organisations would count against the individual spending limit of each organisation. I have heard the Minister chuntering that that is already the case. It is not. The Bill seeks to modify, reinforce and extend what is currently the case and new clause 6 seeks to simplify reporting arrangements to the Electoral Commission. I hope that when the Government look at redefinitions, they also look at other aspects of the Bill such as this.
I want to give one further example of the incoherence of the Bill. Clause 26(6) says that if a person is charged with an offence of making an unauthorised expenditure, they will be able to defend themselves by referring to a code of practice issued by the Electoral Commission. Fair enough. That code of practice will be issued under paragraph 3(2) of schedule 3. But the Electoral Commission, of course, has not produced a code of practice. Indeed, as I said, the Electoral Commission has not even been consulted. Can you believe it? Talk about putting the cart before the horse. We are debating a Bill that, in part, has not even been drafted, let alone consulted on.
This is an inhibiting piece of legislation. It seeks to restrict and curtail civil society or, if hon. Members prefer, the big society. Its impact will be felt especially in Scotland, Wales and Northern Ireland.
The Electoral Commission is a very well-respected, impartial and apolitical body. It was not consulted about the Bill until very close to publication. The Bill contains a number of items that change the terms of reference of the Electoral Commission. It was not consulted about those changes. The Bill makes a group of respected civil servants, in a sense, responsible for policing the measure—perhaps by going in and tearing down bunting and signs, or arresting people who are breaking the provisions. The commission is deeply uncomfortable with being given this role.
My hon. Friend, the Chair of the Select Committee on Political and Constitutional Reform, makes a very good point. His specific points relate to a later part of the Bill but it is important, in this context, to reinforce what he has said. New powers are being bestowed on the Electoral Commission that it does not want because they will allow the commission to become judge and jury on a whole range of difficult and complex areas without a clear piece of legislation to rest on. Its concern is that it will be sucked into a legalistic quagmire, which is bad for electoral politics generally in this country. This is a recipe for chaos.
Amendments 168, 169 and 171, and my new clause 9, focus on the problems and uncertainty that the Bill creates in the devolved regions and nations. It has been said that the interface between this Bill and the currently existing rules is not straightforward. In essence, I would suggest that three things appear to be clear; the Minister can correct me if my interpretation is wrong. First, it is clear that clause 26 and schedule 3 will apply to all devolved elections, as well as to general elections. Secondly, it is clear that clause 31, which focuses on the registration procedures of the Electoral Commission, will also apply to devolved elections. Thirdly, it is clear that clause 27, with new registration thresholds, will also apply to devolved elections.
However, other aspects of the Bill, which I have not mentioned, will not apply to devolved elections. The application of the Bill to devolved elections is important because the conflict between the different aspects of the legislation will create enormous difficulties in Wales, Scotland and Northern Ireland. Those issues are particularly important in those countries because the third sector plays a far greater role in the devolved institutions than it does in England. That is particularly so in Northern Ireland, where the impact will be greatest of all. It gives me a great deal of pleasure to be the president of the Council for Wales of Voluntary Youth Services—I hasten to add that I am in receipt of no remuneration for that honorary position. I know that the relationship of the voluntary youth sector in Wales with the Welsh Assembly is healthy and positive. This Bill makes that relationship more difficult, yet there has been no consultation with any of the devolved Administrations.
My hon. Friend is quite right to raise those concerns. The upcoming referendum on independence in Scotland is just over a year away and will occur within 12 months of the next general election. A whole range of voluntary organisations in Scotland are already intending to make representations in that constitutional debate. Does he share my concern that they will get sucked into the issue of expenditure controls in the general election campaign, too?
Either my hon. Friend has seen my speech or she is telepathic, because I was going to make exactly the same point. There is an overlap between the referendum campaign in Scotland on the crucial issue of independence and the 12 months prior to the next general election, but the Government are yet to show any appreciation of the potential difficulties that could be caused in identifying the respective areas of spend. I would like a categorical commitment from the Government that they will provide a written statement setting out precisely how such difficulties could be avoided or, if they occur, addressed successfully.
It gives me no pleasure to say that this Bill is a monumental shambles. As the Financial Times said in its leader on Monday, the Bill ought to be withdrawn, and legislation affecting political funding and elections should be the subject of cross-party agreement. That should also involve the Electoral Commission in all discussions, as well as the charities and campaigning organisations that would be directly affected by the Bill. It is high time that the big money is indeed taken out of politics. It is also important that we as a House stand full square behind our collective desire to ensure that civil society is a vital part of a healthy democracy. It is a great shame that apparently the Government do not hold that view.
I rise to support my hon. Friend the Member for Caithness, Sutherland and Easter Ross (John Thurso) and new clause 4. However, before I speak briefly about that, I want to respond to the comments made by the hon. Member for Caerphilly (Wayne David) at the beginning, because I am afraid to say that I largely agree with him.
I do not hold much of a brief for any of this Bill, but part 2 as it stands seems to be a very serious mistake. I am particularly concerned because it used to be a convention, at least when I came into the House, that we did not guillotine constitutional Bills, yet part 2 goes to the heart of our democracy and free speech, as demonstrated by the opponents to the Bill. I know of no previous Bill that had ranged against it Christian Aid and the British Humanist Association, Greenpeace and the Countryside Alliance, or the Royal British Legion and the Salvation Army. It is a Bill that has attracted opposition precisely because it goes to the heart of all that those organisations do—not what they stand for, but what they do and how they execute their duty in society.
I understand what the Electoral Commission said, and I agree that that view runs through its evidence, but, as a Back-Bench Conservative Member, I have noticed that no matter what happens in the House, everyone is always calling for more time in which to debate a Bill. I am pleased that we have an opportunity, for once, to debate the Bill on the Floor of the House. I do not want to take up too much time, because I know that a range of issues are still to be debated, but I agree with the hon. Gentleman’s main point that there should be more pre-legislative scrutiny.
Let me now return to my central point. I genuinely believe that it is not the intention of part 2 to damage charities. We all work with charities in our constituencies, and we all support them. The intention of part 2 is to try to prevent super-PACs, or political action committees, and similar organisations from investing large amounts of money in a small number of constituencies in a way that could affect the outcome of a general election. I do not think that any Member on either side of the House would want that to happen.
Will the hon. Gentleman acknowledge that we are not talking merely about a knee-jerk reaction from the 200-plus charities and organisations involved? Many, indeed most, of them have taken legal advice, and a considerable body of legal opinion has placed a huge question mark over the Bill. I put it to the hon. Gentleman that if we do not take that into account, we shall be on very dangerous ground.
I have great respect for the hon. Gentleman, who made an impassioned speech earlier, but for every 200 lawyers whom he cites, I could probably cite 300 who would say something completely different, because, as he knows, it would be in their interests to do so.
That is my third point. If we are seeking to reach consensus, it is critical that all parties in this House are involved in those discussions and also that all parties outside the House that have expressed an interest or a concern are consulted. I am not happy with the whole process—I think we are procedurally in a mess.
My hon. Friend is absolutely right in what he is saying on consultation. It is important that the Electoral Commission is added to the list of consultees, because it has the expertise and is charged with the responsibility of implementing the Bill.
Yes, that was my fourth point. We have to dig ourselves out of this procedural hole and try to ensure that we are not in the same wrangle when we come back on 8 October. It is important that the Electoral Commission is involved.
It would be invaluable if, once the amendment was drafted, the Select Committee had the opportunity to consider it in some detail. The Committee has built up expertise on the Bill over some time and the amendments it has proposed have meant that we have been able to have a proper and constructive debate.
Order. Before I call the Minister, the Opposition spokesperson has indicated that he wishes to make some brief comments.
It is unusual for the Opposition spokesman to make a second speech in such a debate, but it is important to hone in on a few points that have been made on both sides of the Committee. There is a high degree of consensus, and very few, if any, hon. Members have made partisan contributions. All recognise the value of civil society and of it engaging fully in our democratic process.
The right hon. Member for Haltemprice and Howden (Mr Davis) spoke of how the nature of society is changing, and of how civil society is becoming more important in our democracy. We should recognise that and enhance such involvement. We have also heard how public policy is extremely important, particularly with regard to the devolved institutions, for campaigning organisations and the voluntary sector. Hon. Members have heard how charities do not simply raise money, but have a great deal of input into the development of policy in their respective areas, so public policy formation and charity work come together.
In my view, all those points have produced a unanimous view in the Committee. It is important that the Minister acknowledges the relatively uniformity of view in the Committee, and recognises the need for more discussion among hon. Members, and perhaps more importantly among those outside the Chamber who will be directly affected, including the Electoral Commission, charities and campaigning organisations.
Hon. Members have honed in on clause 26. I heard what the Deputy Leader of the House said at the beginning of the debate about amending the clause and schedule 3, so I ask him, in the next few minutes, to give the Committee a commitment that he will have a dialogue with the Opposition, the Electoral Commission and all the organisations that are concerned about the implementation of the measures.
This positive debate has shown that the Committee is not against change. All hon. Members recognise that change must take place, but we also recognise that, in a democracy, if change is to enhance our democratic process, it must take place on the basis of consensus and agreement.
I apologise for the fact that I will take some time to respond. We have been debating the matter for two or two and half hours, and it is appropriate for me to respond to many of the points that have been made. If I am unable to respond in the debate to the points hon. Members have made, or if I do not respond, they can take them up with me later and I will respond in writing.
The debate on Second Reading raised a number of important issues relating to clause 26, and I am grateful to my hon. Friend the Member for Caithness, Sutherland and Easter Ross (John Thurso) and the hon. Members for Caerphilly (Wayne David), for Nottingham North (Mr Allen), for Perth and North Perthshire (Pete Wishart) and for Banff and Buchan (Dr Whiteford) for the amendments they have tabled.
The hon. Member for Caerphilly criticised the Government by saying that the Bill was rushed, but then invited me to draft the amendment we had been discussing here and now, thereby short-circuiting any discussion with interested parties on that particular issue. In response to the specific request he and the hon. Member for Hayes and Harlington (John McDonnell) made on when an amendment will be tabled and whether there will be a process for engaging with the Opposition, the Electoral Commission and the National Council for Voluntary Organisations, I can provide them with reassurance that that process will happen. I am happy to meet the hon. Member for Caerphilly to discuss proposed Government amendments. Discussions will take place with the Electoral Commission and the NCVO prior to them being finalised. Although the House will be in conference recess, the Government hope to table amendments at least a week before to give Members time to consider them.
I thank the right hon. Gentleman for his positive comment. If he is giving a commitment to effectively redrafting clause 26, he will have no problem if the Committee votes against it tonight.
It will be up to the hon. Gentleman to make his decision. I have given an undertaking, and am about to give a more detailed undertaking, of what we intend to do with clause 26. It will be up to him to decide whether he feels that that is appropriate.
The main purpose of clause 26 is to align the activities that count as controlled expenditure for political parties and third parties. Many Members have referred to the Electoral Commission’s objections to aspects of the Bill. As far as I am aware, no one has referred to what it had to say on the alignment of the definition of controlled expenditure for political parties and third parties, and I would like to put that on the record. Recommendation 29 of its June 2013 report states:
“The rules on PPERA non-party campaigning that is intended to influence voters should be changed so that they more closely reflect the scope of rules for political parties by covering events, media work and polling, as well as election material.”
That is what the Electoral Commission has to say about the importance of ensuring that the two measures mesh carefully.
What the right hon. Gentleman says is of course correct. Why, if he believes there should be greater alignment between the two areas of expenditure, does he want to introduce a staff cost to the voluntary sector that does not apply to political parties? He cannot have it both ways.
I thank the hon. Gentleman for that intervention, because it gives me the opportunity to underline that under the current definition of controlled expenditure, staff costs for non-party organisations have to be accounted for. This is not a departure; we are extending the requirement on them to account for staff costs to the new areas of controlled expenditure that we think should be covered, such as research.
I thought that the Minister was in listening mode, but there we are. May I ask him one simple question? Does he intend to revise schedule 3?
I think that we shall have to wait and see—[Interruption.] As I have said to the hon. Gentleman, what we are seeking to do is to address the concerns expressed by charities about the lack of clarity in the definitions. We have indicated that we will revert to terms very similar to those used in the original legislation. I am sure that if he genuinely wants to address the concerns that charities have expressed, he will welcome that. As I said, we will return to the issue on Report.
In new clause 9, the hon. Member for Caerphilly calls on the Government to undertake a post-legislative assessment. New clause 10 also calls for such an assessment. We conducted an impact assessment, which we consider to be adequate, but the Chairman of the Select Committee, the hon. Member for Nottingham North, may well wish to undertake a post-legislative assessment. The Leader of the House and I are both keen for post-legislative scrutiny to take place, and, in fact, would encourage Select Committees to carry out more of it than they do at present.
The hon. Member for Caerphilly referred to the amendment which would alter schedule 3 by appearing to narrow slightly the types of manifesto or documents that are included, omitting those which set out a party’s policies, but not the third party’s view of them. It would also remove the detail of the type of expenses that should be included in calculation of the amount of controlled expenditure associated with any manifesto or other document setting out the third party’s view on the policies of a party or candidate.
At present, recognised third parties incur controlled expenditure in connection with the production or publication of election material which is made available to the public. That will normally cover activities such as advertising, unsolicited material addressed to electors, and any manifesto or document setting out the policies, or the recognised third party’s view on the policies, of one or more parties or candidates.
While schedule 3 expands the range of activities that may constitute controlled expenditure, manifestos or policy documents—being election material—are already covered by existing law, and will remain so. They are simply described here in a different way. I therefore urge that the amendment is not pressed to a vote.
References have been made to press conferences and rallies. I know that the TUC has expressed fears that it will not be allowed to hold its rally. Our view is that the TUC would not promote parties or political candidates at the rally—especially given what is happening at the TUC conference today, where it could almost be argued that the TUC is supporting anything but the Labour party. [Interruption.]
I suspect that the Committee is becoming restless, Sir Edward, and that I need to move on very, very promptly. Members will be pleased to learn that I have reached the penultimate page of my notes.
I have explained to the hon. Member for Caerphilly that staff costs are covered by the controlled expenditure rules that apply now to non-party organisations. Therefore, by extending the definition of controlled expenditure, we are requiring them to account for staff costs in the areas that are now also covered by controlled expenditure.
I am not going to give way. I have made that point clear. I do not think the hon. Gentleman understood it, but I hope he does now.
The hon. Gentleman asked why staff costs are accounted for for non-party organisations but not for political parties. The role of political parties is entirely to campaign politically and therefore all the staff costs of any political party would have to be accounted for as part of controlled expenditure. I do not think he is advocating that.
I have come to the end of my notes. Having heard the firm undertakings the Government have given to engage with the NCVO, the Electoral Commission, the Opposition and a number of organisations that are going to respond to the amendment when it has been published in advance of Parliament returning, I hope my hon. Friend the Member for Caithness, Sutherland and Easter Ross will think that we have done enough for him to withdraw his amendment.
I agree with the argument being elaborated by the Chair of the Select Committee. The Electoral Commission says it finds it difficult to understand the rationale behind the Government’s proposed changes. On clause 27, has my hon. Friend discovered the Government’s rationale for arguing for a reduction in the thresholds for third sector organisations so that many more are caught?
I am afraid I must give the third negative reply in a row: we have not discovered that rationale, but the search goes on and I am determined that before the end of this process—before Her Majesty signs this Bill into law—we will have discovered it. Until then, it is the job of all of us across the House to try to make this Bill less hurtful, harmful and oppressive to the charities that we all care about. A small step has been taken today, which gives great cause for optimism, as does the fact that the Minister accepted an amendment from my Committee last night and even adopted it as the Government’s own. I was very grateful for that. It shows we can move forward.
We are engaged in an incremental process, and Parliament has an important role to play in it.
If the objective is transparency, what is the logic in having a reduction to £5,000? Why not £4,000?