European Union Referendum Bill Debate

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Department: HM Treasury

European Union Referendum Bill

William Cash Excerpts
Tuesday 16th June 2015

(9 years, 4 months ago)

Commons Chamber
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William Cash Portrait Sir William Cash (Stone) (Con)
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I shall speak from a standing position.

Lindsay Hoyle Portrait The Chairman of Ways and Means (Mr Lindsay Hoyle)
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May I suggest that perhaps the hon. Gentleman ought to take a seat? The last thing that I want him to do is get himself into difficulty, and take too much out of himself. Please, Sir William, do whatever you feel is necessary,

William Cash Portrait Sir William Cash
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I will sit down then. I am sorry to have to make my speech in this way, but I have been in hospital for the last four days.

Our problem is this: the situation in which we now find ourselves is not necessary. I speak more in sorrow than in anger, because I have spoken to the Minister for Europe, and we had a good discussion, as we always do. I was also grateful to him for saying in a letter that he was himself grateful for the constructive way in which concerns had been raised. It must be said, however, that the Government have not allayed those concerns, and that is the real point. I shall try to explain why, but let me first congratulate the Government on having listened. They listened over the question of having a referendum at all, they listened over the question of whether we should veto the fiscal compact, and they listened over the reduction in the budget. Those are all positive steps.

Having given the matter as much thought as I could—admittedly, I had an opportunity to do so from my hospital bed—I have to say that, in this instance, I am convinced that the Government are taking a step in the wrong direction. However—I ask Ministers to listen, if they would be kind enough to do so—it is possible for them to retrieve the situation so that there need not be a vote against.

Ultimately, what is raised is a question of trust. There are extremely strong reasons for the provisions in section 125 of the Political Parties, Elections and Referendums Act 2000, but we have heard very little about those provisions. Let me briefly explain them, so that people will know what we are about to repeal. Most might assume that, given the momentous and historic nature of the EU referendum, what is good enough for a Scottish referendum, a referendum on the alternative vote, and a Welsh referendum—all of which have taken place under Conservative-led Governments in the last few years—ought to be applicable to a referendum that goes to the heart of how we are governed and who governs us.

However, it is not just about trust. We do not know what the outcome of the promised discussions and consultations will be, but we do know that conducting a referendum in a manner that is unfair on the voters is an extremely retrograde step in the kind of democracy that we uphold. The provisions in the 2000 Act were introduced for very sound reasons. I applaud the then Government for that, and, even at this late stage, I appeal to the present Government to think again.

Incidentally, this has absolutely nothing to do with Maastricht or anything like that. There was a rebellion then because we did not have a referendum. On this occasion, we merely wish to ensure that the voters are given a fair choice. That must be one of our prime duties, because we are sent here as representatives of those people. If the Bill is passed, we shall have made a decision to transfer back to those people, by means of an Act of Parliament, the right to make their own decision. Therefore, they will have an absolute right to know that the way the referendum is conducted will in no way be canted or manipulated, whether for yes or no. Taking this out and then asking us to consider on the basis of consultations yet to come seems to me quite bizarre, because if the Government were good enough to accept my amendment 11—I am grateful for the support of many Members on both sides of the House on that—nothing would change in terms of the referendum. It is not going to take place in any immediate future. All we will be doing is re-securing the status quo so that we will then have the restrictions set out in section 125. I will come on to that section in a moment, and demonstrate what we would actually be repealing this evening. This is not just a Eurosceptic argument. This is not about a Eurosceptic position, in essence. It may be that we would prefer to ensure there is a fair vote, but the real question is about our democracy. That, to me, is the main question.

Alex Salmond Portrait Alex Salmond
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But does not the experience of the Scottish referendum tell the House that not only should the protections that are in statute not be removed from this Bill and that the hon. Gentleman’s amendment 11 should be carried, but that there needs to be an enforcement mechanism to make sure the purdah period is applied and adhered to by Government Ministers and civil servants?

William Cash Portrait Sir William Cash
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I very much agree, and it may be of interest to Members, if they have not already noticed, that the Electoral Commission has examined not only the Bill but my amendments, and has stated:

“The Commission is therefore generally supportive of proposals to reinstate restrictions on the publication of promotional material by central and local government in the run-up to the poll.”

Even after Second Reading, the Electoral Commission—which is, after all, charged with these duties—has concluded it would be important to retain these restrictions. Some adjustments may need to be made in due course, but we should secure the status quo, then have the discussions, and then have the vote on Report. That would be the right way round.

Lord Clarke of Nottingham Portrait Mr Kenneth Clarke
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How far does my hon. Friend want to take this? In a general election, the whole government machinery closes down for four weeks and studies the potential future of alternative political masters and waits to see what the political policy of the new Government will be. In this case, however, the Government at the time of the referendum will be the Government for the next several years, and the Government, as a Government, will have been involved in producing the terms that are part of the referendum. Does my hon. Friend intend that no Minister can act as a Minister, as could be the case if we strictly applied purdah, or take advice for all those weeks on anything that might pertain to an issue in the referendum? Is the Prime Minister going to be prevented from expressing a view? Surely some compromise that is a modification of purdah is required—

Lindsay Hoyle Portrait The Chairman of Ways and Means (Mr Lindsay Hoyle)
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Order. The right hon. and learned Gentleman has been here longer than most Members, and he should know that interventions must be short, especially if he wants to make a speech later.

William Cash Portrait Sir William Cash
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I seem to have spurred my right hon. and learned Friend to a passionate pursuit of his arguments, because he does not want what I am proposing at all. The fact is that the Electoral Commission says the proposal to remove section 125

“could mean that governments and others will be free to spend unlimited amounts of public funds promoting an outcome at the referendum right up until polling day.”

It goes on to say:

“In the Commission’s view, there is a risk that the use of significant amounts of public money for promotional activity could give an unfair advantage to one side of the argument. Unlimited government spending would also undermine the principle of having spending limits for registered campaigns.”

We have already heard about the interference in the Scottish referendum, and what the right hon. Member for Gordon (Alex Salmond) said is completely right.

Christopher Chope Portrait Mr Chope
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Does my hon. Friend agree that it is ironic that the section 125 provisions were adopted by the Venice Commission in the following year and are now universal best practice, and that the Venice Commission has endorsed the fact that there should be a prohibition on Government expenditure in the four weeks of the referendum campaign?

William Cash Portrait Sir William Cash
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That is absolutely right. I was going to refer to that, but I am grateful to my hon. Friend for making the point.

I want to refer to what section 125 actually does say, because the proposal is to remove that tonight, in the face of our opposition. The explanatory notes accompanying the Bill state what they do:

“These Explanatory Notes have been prepared by the Foreign and Commonwealth Office…to help inform debate”

and

“in order to assist the reader of the Bill”.

However, paragraph 52 of the notes gives no explanation and simply says:

“Paragraph 25 provides that section 125 of the 2000 Act does not apply for the purposes of this referendum”,

and then mentions a consequential amendment. There is no explanation at all. That itself is a reason for our being concerned about the way this is being done.

I want to return to the question of what we are repealing. What is in the 2000 Act is very sound. It refers to

“any material which—

(a) provides general information about a referendum to which this Part applies;

(b) deals with any of the issues raised by any question on which such a referendum is being held;

(c) puts any arguments for or against any particular answer to any such question; or

(d) is designed to encourage voting at such a referendum.”

It is very comprehensive.

Mike Wood Portrait Mike Wood (Dudley South) (Con)
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Does my hon. Friend share my concerns that the provisions of section 125 would allow the European Commission to make statements and publish material affecting a referendum on Britain’s membership of the EU, but would prevent British Ministers or Departments from publishing material to correct or counter such a publication?

William Cash Portrait Sir William Cash
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Very simply, any suggestion that the European Commission or the EU should be involved in this process is the subject of another amendment I have tabled, and nor should they be allowed to make any provision by way of financing. We can debate that later.

On whether contradiction might be created in respect of the position of Government Ministers in this country, my flow has been slightly diverted by my hon. Friend’s perfectly understandable intervention, but the fact is that Ministers and the civil service are in a position under the purdah rules such that they would not be able to use the machinery of government. In relation to the EU, which I know a little bit about, the machinery of government is extensive, but there are methods that could be applied, with a sensible degree of amendment, to ensure that the restrictions on the matters to which I have referred are complied with, because this is what we are talking about; it is not some generalised assumption that Ministers are going to wander on to completely different paths.

Section 125 lists the material I have already referred to—

“general information about a referendum…any of the issues raised by any question…any arguments for or against any particular answer to any such question”

and questions

“designed to designed to encourage voting”,—

and it states that none of that material

“shall be published during the relevant period by or on behalf of—

(a) any Minister of the Crown, government department or local authority”.

It could not be clearer; it could not be more sensible, more sound or more comprehensive.

John Redwood Portrait John Redwood (Wokingham) (Con)
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Would my hon. Friend like to confirm that it is a principle of fairness in all British elections and referendums that individuals—Ministers as well—participate on whichever side they wish under a single campaign, for yes or for no, which has proper controls over expenditure and publications? Does he also acknowledge that there cannot be a third category of intervention by the Government, because that would break the normal rules of campaign funding and control?

William Cash Portrait Sir William Cash
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I completely agree with my right hon. Friend.

Bernard Jenkin Portrait Mr Jenkin
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The Government argue—I think we have to accept their argument—that these detailed and broad restrictions are too prescriptive and that they would not be able to carry on with the normal course of government, as my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) has explained. Does my hon. Friend not agree that there would be too much interference in the normal conduct of government?

William Cash Portrait Sir William Cash
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I just do not think that makes sense. The bottom line is that we are now so invading the ability of the voters in the referendum to make a free and fair choice, by canting the process and taking all the things to which I have just referred out of the equation, that we could seriously undermine the whole democratic process with respect to referendums. This is simply not a tenable position. If it was good enough for the Scottish and the Welsh, why is it not good enough for the referendum on the EU, which will go even further towards infringing—as we would put it—the role of this Parliament and our democratic freedoms?

I also want to discuss what publishing means. Section 125 of the 2000 Act is very general on this point, and this is what hon. Members are being asked to repeal this afternoon. It states:

“‘publish’ means make available to the public at large, or any section of the public, in whatever form and by whatever means”,

and the relevant period

“means the period of 28 days ending with the date of the poll.”

There are profound reasons for maintaining the status quo at this stage and for retaining the restriction, because once it has been repealed, we would then have to reinvent the wheel, as it were, on Report. That could open a huge can of worms for the Government. The question is: what would the Government not be restrained from doing, compared with some of the things that it is currently stated they would be restrained from doing?

The Minister for Europe has sent us a letter today, 16 June, in which he says:

“It is our clear intention, through the Bill, to provide a straightforward, fair and effective framework for the referendum.”

I have to say to him that I must cast some doubt on that in relation to the questions that are being raised. He goes on to say that it would be “inappropriate” to

“prevent Ministers from effectively conducting the significant amounts of ordinary day-to-day business between the Government and the EU that will necessarily continue during the pre-poll period.”

I have been Chairman of the European Scrutiny Committee for five years, and I just do not recognise this at all. There are things that go on in the monumental amount of material that comes in from the European Union, but in my judgment there is no suggestion that anything of this nature would be affected by retaining section 125. The section was applied during the Scottish referendum, which had a European dimension. The same applied to the Welsh Assembly. If it was all right for Ministers to continue to make statements in those circumstances, we should keep section 125 and do as the Foreign Secretary suggested during the Second Reading debate. The Minister for Europe’s letter states:

“The Foreign Secretary said during the debate that the Government will exercise proper restraint to ensure a balanced debate during the campaign.”

This is the moment to ensure that we get this right by keeping the restriction for the time being, having discussions and coming back with specific proposals on Report, on which we can then vote.

I acknowledge that the Minister for Europe has conceded that we have more than a reasonable case. His letter goes on:

“Working out a system that will reassure colleagues and voters that the referendum is a fair fight, yet will preserve the Government’s ability to act in the national interest is not straightforward.”

Well, it would be very straightforward if we kept section 125. He adds:

“It is important that it is legally clear and robust.”

It would make things very unclear and very unrobust if we were to remove the provisions in section 125, which are based on common sense and fairness and on giving voters a proper opportunity to make a fair choice.

Mike Gapes Portrait Mike Gapes (Ilford South) (Lab/Co-op)
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I rise to speak in support of amendments 49 and 50, which have been tabled in my name, and to give my support to amendment 54, which was introduced by my right hon. Friend the Member for Wolverhampton South East (Mr McFadden).

The Bill proposes that the referendum be held by 31 December 2017. That is in line with what the Prime Minister proposed in his Bloomberg speech in January 2013. I often wondered why 31 December 2017 had been chosen. I assumed that it was an arbitrary date midway through a Parliament elected in May 2015. In the last Parliament, when the former Foreign Secretary, William Hague, was questioned by the Foreign Affairs Committee, it seemed to come as a surprise to him when we pointed out that under the rotating presidency of the Council of Ministers the United Kingdom’s presidency would begin in July 2017. I do not know whether that had been taken into consideration when the Government produced their original proposal, but it will clearly be a major complicating factor.

We are debating the period of purdah. Just imagine what would happen if there were a meeting of the Council of Ministers in September 2017 and the referendum were to be held within 28 days of that meeting, in the October. What would Ministers be able to do or say during that period? Those Council of Ministers meetings have to be convened and chaired by the appropriate representative of the rotating six-month presidency, and there would have to be a British Minister present to represent the interests of the UK Government. What could those Ministers and their officials say and do during that period? There would be enormous complications if the Bill were to lead to a referendum being held in the last few months of 2017.

Under the constitution of the Federal Republic of Germany, there is a defined period within which the next German election will be held. It has to be held on 27 August 2017 at the earliest, and at the latest on 22 October 2017. One can imagine Chancellor Merkel, Mr Sigmar Gabriel, Mr Frank-Walter Steinmeier, Mr Wolfgang Schäuble and all the other senior figures on both sides of the German coalition being somewhat exercised and diverted from considering matters to do with the possible negotiated terms, or the nature of the negotiation, if we had not yet set the date for our referendum.

It seems, therefore, that any referendum held in the second half of 2017 would have major problems. Amendment 49 recognises that, and provides that the referendum in this country should be held before 1 July 2017—before the United Kingdom takes over the rotating presidency of the Council of Ministers and before the German election campaign. We might bring it forward to the first half of 2017, but I suspect that when the Prime Minister came up with his proposal in his Bloomberg speech he had not considered the election cycle in France. The first round of the presidential election has to be held in April 2017 and the second round in May. We could face trouble with the renegotiations in France if we were to have the referendum later in 2017.

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Lord Clarke of Nottingham Portrait Mr Clarke
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Which is why I believe that the parliamentary system of democracy is so very good. A representative body of people elected from time to time have continuous responsibility for step-by-step decisions, and eventually they have to face the consequences of their decisions and can be removed. But we are already going wide of the amendments.

William Cash Portrait Sir William Cash
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Will my right hon. and learned Friend give way?

Lord Clarke of Nottingham Portrait Mr Clarke
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I am delighted to see that my hon. Friend the Member for Stone (Sir William Cash) is able to stand when he feels passionately on the subject. I am sympathetic to the problems he has had, and I am glad that he was able to speak from a sedentary position, which I had never seen before. I will finish making my point before I give way.

I hold my hon. Friend and those who agree with him in the highest possible regard. We in the Conservative party have to be careful that we do not repeat the folly of Harold Wilson and tear our party apart in the course of a referendum campaign. After quite a few decades of this battle, I continue to be on excellent personal terms with those of my hon. Friends with whom I disagree. It is best that we proceed by putting forward our respective views of the public interest. We must certainly not divide the strong purpose of the Government, who have been so recently elected with the support of the whole Conservative party.

William Cash Portrait Sir William Cash
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Will my right hon. and learned Friend allow me?

Lord Clarke of Nottingham Portrait Mr Clarke
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Let me make a little more progress. I hope that my hon. Friend’s constraint will stop him leaping up too frequently; I will give way in due course.

I do not believe that there is any bad faith anywhere. Everyone wants those who campaign and the public to feel that the referendum has been conducted with absolute fairness. I am surprised, therefore, that, in these opening days of the European referendum process, so much passion is being excited by procedural issues. I will not describe them as footnotes, but, although they are important, none of them will make the faintest difference to the result on the day of the referendum. If we asked most of our masters—the public—whether purdah was followed properly during the campaign, they would not have the first idea what we were talking about. So my first plea is for a sense of proportion.

My plea to my right hon. Friend the Minister—I do not think I need to make it because I have seen the letter, which did not get to me either; I have just been shown it—is to live up to his undertakings. It is right to bend over backwards to reassure my right hon. and hon. Friends that there is no conspiracy, that they must not leap into paranoia, and that the intention is to hold a referendum in which the British public will be able to reach a view on balanced presentations. It seems to me that Ministers have started doing this straight away. I got the impression from the Second Reading debate that my right hon. Friends on the Front Bench were as surprised as I was at the sudden excitement about the rules in what should have been a fairly routine Bill paving the way for the referendum.

Lord Clarke of Nottingham Portrait Mr Clarke
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I will give way in a moment.

The Prime Minister has announced that he will suspend the rules of collective responsibility and that members of the Government will be able to campaign on whichever side they choose. We now have the letter giving an undertaking that the Government will depart from section 129. People seem to think that there is something magic about 5 May 2016, so we will not hold the referendum on that date. I have sympathy with Ministers; they are being derided. The moment they make concessions to all these impassioned pleas, they suffer the fate of all Ministers and are immediately accused of a humiliating U-turn and held up for ridicule.

Some of my right hon. and hon. Friends and perhaps others in the Scottish National party are difficult to calm down and reassure. I ask them to accept, as I accept, that every effort is being and should be made to satisfy fears about the propriety of the campaigning period.

William Cash Portrait Sir William Cash
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My right hon. and learned Friend’s rather Hush Puppy approach—saying that there is really nothing much that we need worry about, and that Parliament is far better at doing this than the people—seems somewhat dangerous and disrespectful of the voters. We have had a lot of referendums over the years. He says that purdah would not make a difference anyway. Does he think that the Electoral Commission is wrong when it says that disapplying section 125 of the 2000 Act would enable the Government to spend unlimited sums of money?

Lord Clarke of Nottingham Portrait Mr Clarke
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I once gave evidence to an inquiry chaired by Sir Nigel Wicks into the workings of the Electoral Commission, and my recommendation was that it should be abolished as a useless quango, but that is a wider issue.

Of course we have had referendums, but my hon. Friend has never accepted the result of any referendum if he disagreed with it—for the sound reason, for which I respect him, that he has strong personal principles and convictions. I took part in the referendum 40 years ago. No serious Member of Parliament on either side of the argument changed their beliefs one jot the day after the result of the poll was announced. Tony Benn, who was personally responsible for floating this innovation in British politics, was one of the first to start demanding that we left the European Community within a few weeks of the announcement of the result. The Labour party was committed to leaving the EU by the time we got to the 1983 election, having shed a high proportion of its members to the Social Democratic party. My hon. Friend the Member for Stone and I agree that we must not repeat the mistakes of the past.

William Cash Portrait Sir William Cash
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Will my right hon. and learned Friend give way?

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Roger Gale Portrait The Temporary Chair
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Amendment 11 comes later in the proceedings. Whether or not that is the subject of a Division will be a matter for whoever is in the Chair later in the day. My expectation is that there will be a Division, but that is a matter for the Chairman at the time.

William Cash Portrait Sir William Cash
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My view about the clause is that we have managed to have a wide-ranging debate. In the interests of brevity, I do not think much needs to be said on the subject. We really ought to get on to other matters, including the question of European Union financing. I have no further comments to make on clause stand part.

Edward Leigh Portrait Sir Edward Leigh
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(Gainsborough) (Con) rose—

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Edward Leigh Portrait Sir Edward Leigh
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I do not want us to repeat yesterday’s debate, but we all know that there was a shift in public opinion following the Scottish referendum, so we have to be careful.

The UK is lucky not to suffer from the money-infused politics of the United States, where power goes to the highest bidder or spender. As we all know, it is virtually impossible to have a serious intention of becoming President without access to millions of pounds of spending or unless your name is Bush or Clinton. We do not want to replicate that situation here. British voters are very resistant to such a culture. We have been brought up in our constituencies knowing there is fairness and that all sides roughly spend the same.

William Cash Portrait Sir William Cash
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Has my hon. Friend noticed my own amendment about restricting the money that will surely come from the EU and European Commission? They are described by the Electoral Commission as foreign sources, but they are not. Are they not actually part and parcel of what applies to us under the European Communities Act 1972?

Edward Leigh Portrait Sir Edward Leigh
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It would be ironic if the European Commission were a major player—but actually why should it not be? It is entitled to its point of view and to put its case. It has massive resources, however, to which we have contributed greatly, as my hon. Friend says. Nobody minds the Commission having a point of view, but we know what it will be, and we do not want its spending to come on top of all the rest, as it would create a sense of unfairness.

The official yes side in the AV referendum spent £3,436,000, and the official no side spent £2,595,000, so although the no side was outspent, spending was broadly not too dissimilar and fairly low, and voters still rejected the proposal. That is fair enough. Although the yes side spent a bit more, the arguments were well put. We all understood the arguments and there was broad acceptance of the result. There was no backlash and people felt the whole thing was fair, and in any event the result was clear: two thirds voted no.

Now, let us consider other referendums that I do not think have been conducted as fairly as our AV referendum. In 2008, voters in Ireland rejected the Lisbon treaty, only effectively to be told they must vote again, until the “correct result” could be obtained. The behaviour of the pro-EU side in the subsequent 2009 referendum campaign has resulted in several legal challenges in Ireland. One campaigning group even offered Irish citizens resident on the continent free Ryanair flights home, provided they canvassed for a yes vote. Before Lisbon, Irish voters also rejected the treaty of Nice in a 2001 referendum, but the Government pushed through a law on the last day before the Irish Parliament broke up for Christmas to remove the responsibility of the Referendum Commission to ensure that voters were informed of arguments on both sides in a balanced way. There is a great deal of unhappiness about that in Ireland. I should have thought that the yes campaigners could have won anyway.

We want to ensure that when it comes to our own referendum it is clear to everyone that there has been fairness. In the case of other EU referendums, when the stakes have been incredibly high and when it has been possible for huge amounts of money to be spent, there have been allegations of dirty tricks. We do not want that to happen in our own country. Our Government must show that they will insist on a free, fair, balanced and clean referendum, with equitable arrangements for all sides. As we know, a large proportion of the populace is already somewhat disengaged from and disenchanted with politics, and allowing such an overspend by one side would only deepen those feelings. It would reinforce the idea that the deck is stacked and the game is rigged.

Members in all parts of the House are profoundly aware of how difficult it can be to engage ordinary people in the political process. Too often, we meet with responses such as “What is the point?”, “It will not change anything”, “It is all fixed anyway”, and “If voting changed anything, they would abolish it.” We reject that, as politicians and as people who value debate in the House of Commons. We want the referendum to be fair. However, the mindset of many people out there must be acknowledged and challenged.

Public confidence in our parliamentary democracy is a matter of grave concern, and this referendum is a crucial turning point. The very fact that it is taking place is testimony to the Prime Minister’s having kept his word, and that has meant a great deal in the context of restoring confidence in the whole EU debate and in our democracy. As I have said several times, and as everyone knows, no one under the age of 55 has yet had a chance to vote yes or no in a referendum such as this. There is now a great opportunity for a really good debate, and for both sides to be given broadly equal funding to enable them to put their arguments.

Finally, let me say to the Minister that more needs to be done. The Government need to ensure that this problem is addressed.

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Alex Salmond Portrait Alex Salmond
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The hon. Gentleman should be aware that there is a Jacobite white rose. I have always had the hon. Gentleman down for a Jacobin rather than a Jacobite, but there is also the MacDiarmid rose in the poem:

“The rose of all the world is not for me

I want for my part

Only the little white rose of Scotland

That smells sharp and sweet - and breaks the heart.”

SNP Members were adorned by the MacDiarmid rose during the Queen’s Speech.

The point about spending limits is well made. Fairness in terms of spending capacity is one important part of elections and referendums. There is an enforcement mechanism—some may say that it is not always used as rigorously as it could be—for election or referendum spending rules and there are severe penalties for breaching them. There is no such effective mechanism for breaches of purdah or when Ministers or civil servants go clearly outside the purdah rules. I commend to the hon. Gentleman the new clauses, which we will vote on later, which would introduce exactly such an enforcement mechanism to ensure fairness not just in our debates but in a referendum.

William Cash Portrait Sir William Cash
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The civil service code does not impose any restriction on civil servants as far as I am told. That would definitely have to be dealt with, as the right hon. Gentleman suggests.

Alex Salmond Portrait Alex Salmond
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I am delighted to have given way to the hon. Gentleman, who is in a sedentary position. His colleague the hon. Member for Harwich and North Essex (Mr Jenkin), whose Committee’s report condemned the activities of Sir Nicholas Macpherson a few months ago, has alluded to exactly why that should be done. The hon. Member for Stone is right and I commend him to look at our new clauses 3 and 4, which seek to set out what the rules should be and to provide an enforcement mechanism to make sure that they are adhered to.

You have been patient, Sir Roger, and I know that a number of other hon. and right hon. Members wish to speak. I say to the Government that this debate has already flung up a range of issues. There are severe deficiencies in the Bill, although we certainly welcome the concession on the timing of the referendum, whether that happened as a result of listening or of panic. However, there are other areas on which the Government have not yet convinced me as a pro-European or, I suspect, some of their colleagues who take a different view on the European referendum. The joint view that we hold, as far as is possible, is that we would like to see a referendum that is conducted in a proper and fair manner.

William Cash Portrait Sir William Cash
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I am going to speak to my amendment 9, which is a simple amendment with very important consequences and implications. It would ensure that the referendum period lasts for at least 16 weeks.

Under the Political Parties, Elections and Referendums Act 2000, there is a maximum six-week period for potential lead campaigners to apply and be appointed, followed by a minimum four-week period before the poll. However, the Electoral Commission, drawing on its experience of regulating the rules for the Scottish independence referendum in 2014, has concluded that an alternative approach is needed to the timetable for appointing lead campaigners. The amendment recommends that, should the legislative timetable allow for it, the appointment should take place shortly before rather than during the first six weeks of the referendum period.

The effect would be to provide clarity at an earlier stage for voters and campaigners, and to ensure that the lead campaigners were in place shortly before the majority of the regulatory controls come into force. I cannot think of anything much more important than people knowing who is running which organisations. That would therefore allow for a shorter total duration of the subsequent referendum period—for example, a designation period of six weeks—with a subsequent 10-week regulated campaign period.

This is a massively important referendum and it is pretty astonishing that there is a vacuum on this subject. This is an extremely important amendment. The Minister for Europe is not in his place, but one of the senior Whips is, which is no substitute—

John Penrose Portrait The Parliamentary Secretary, Cabinet Office (John Penrose)
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I am the Minister responsible for constitutional reform.

William Cash Portrait Sir William Cash
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I do beg my hon. Friend’s pardon. He was a Whip a short time ago, but he has now been promoted, on which I congratulate him. I hope he will pass back the message that we really must have a substantive response to this question.

Furthermore, the amendment will extend the minimum referendum period to 16 weeks, thus providing for a minimum 10-week post-appointment period. I am glad to say that the Electoral Commission supports my amendment; indeed, it supports the majority of my amendments. It says that extending the period to 16 weeks

“would go some way to giving designated lead campaign groups the time needed to get their messages to voters, including to plan and effectively use free mailing and TV broadcasts.”

As a matter of fairness—that hallowed expression—I cannot think of anything more important.

Bernard Jenkin Portrait Mr Jenkin
- Hansard - - - Excerpts

I commend my hon. Friend’s amendment, to which I have added my name, but does that not presuppose that the Government will conclude the negotiations and report them to the House well before the 16-week period kicks in, and that it is not legitimate for them then to use the Government’s machinery to explain the deal that they have reached through the purdah period and the 16-week period up to polling day? Does that not suggest that the Government will try to pull a fast one? Would it not be better if they made it clear now that they are going to conclude the deal long before the referendum is called so that there can be a proper and dispassionate debate about it?

William Cash Portrait Sir William Cash
- Hansard - -

I very much agree with my hon. Friend and I will go further and say that in the period between now and Report there will be substantial issues of this kind that we will need to dig into. There are references to counsel’s opinion on the purdah period and views that have been expressed by the Electoral Commission. We had a Bill before us without our having any idea of the outcome of the negotiations. This is not a satisfactory way to proceed.

As one who spent 25 years in very senior practice as a constitutional and administrative lawyer dealing with matters such as the dispute between Canada and Quebec, I can only say that counsel’s opinion is not the basis on which to make political decisions. We as lawyers may be very good at coming up with legal answers, but when I get my hands on that counsel’s opinion, as eventually we did on the Iraq opinion, there will be quite a lot of question marks. As my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) said in an earlier intervention, the Government can take their counsel’s opinion; we will take ours.

That is the position on that important amendment. The Electoral Commission supports the principle behind it. Will the Minister be good enough to give us a substantive reply and support amendment 9? I might not hold my breath about that.

The other amendment in my name, amendment 10—again, I am grateful for the support of hon. Members who have signed it—would ensure that no funds or support provided directly or indirectly by European Union bodies have a bearing on the outcome of the referendum. Is there any conceivable basis on which the Committee of the whole House would think a proper and fair referendum could be conducted if the entire resources of the European Commission and the European Union can be deployed in order to support a yes vote in the United Kingdom? By the way, there is no chance whatever that those bodies will not use all that money. They may have problems with Greece and they do not want a Grexit, but that pales into insignificance.

This is a very important proposal. The Electoral Commission takes the view that it already has controls on direct and indirect sources of campaign funding. Before I come to that, I refer to the situation as it applied in Ireland. I have spoken, debated and been at mass meetings when campaigners have been good enough to invite me in the run-up to referendums in France, Ireland, Denmark—all over Europe. There one sees the power of the state, pouring money down the throats of voters, and the machinery that underpins the yes campaign. I have come across some figures suggesting that in the second Irish referendum the amount of money deployed by the yes campaign after the machinery was geared up was around 15 times the amount available to the no campaign. That shows the scale of the problem.

Angus Brendan MacNeil Portrait Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
- Hansard - - - Excerpts

I wonder whether the hon. Gentleman’s concern is partly due to the behaviour of José Manuel Barroso, the former President of the European Commission, during the Scottish referendum, and whether that model is what he envisages seeing, in amplification, in the European referendum.

William Cash Portrait Sir William Cash
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It certainly is. I have heard over and over again in this debate claims that, “We all want fairness. We all want transparency. We all want to be sure that the British people are treated fairly.” The fact is that with European Union money there is not the slightest chance of that happening, and the purdah arrangements, by bringing the civil service into the equation, will have exactly the same negative effect.

Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

By extension, the logical conclusion of what the hon. Gentleman has just said is that the Scottish people were not treated fairly last September.

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William Cash Portrait Sir William Cash
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The hon. Gentleman is seeking to draw me down that path, but I have been in this place for 31 years and will not buy that one. I am very glad that we got the vote we did last September, but that does not prevent me from being critical of the manner in which the procedures were followed.

I want to say something else. We have mentioned Mr Barroso. Here we are in the Westminster Parliament, described as the mother of Parliaments, and yesterday the celebrations for the Magna Carta were seen all over the world. The fact is that the traditions of those two things are illuminated around the world. We have fought in two world wars, against unprovoked aggression, and through our Parliament—through Churchill in this Parliament—we managed to save not just the United Kingdom, but Europe. They managed to drop a bomb on this place on my first birthday. Indeed, on the day I was born Hitler invaded Holland and France and Churchill became Prime Minister, but that is another story. The fact is that we have played a massive part in relation to democracy. What really worries me is that allowing the European Union to use its financial resources to manipulate the system is very dangerous.

According to the Electoral Commission, a central principle of its regulatory regime is to ensure—this is important—

“that foreign sources of funding do not have an undue influence on our democratic process.”

As hon. Members know, I have an eagle eye for the danger points. The Electoral Commission states that the 2000 Act, which sets out that regulatory regime,

“already provides that referendum campaigners are only able to accept donations over £500 from certain ‘permissible’ sources. In general, the permissibility rules provide that funding can only be accepted by referendum campaigners from certain UK-based sources. There are also rules and offences related to using permissible donors as agents to circumvent the rules.”

The Electoral Commission therefore put in place its regulatory arrangements. What it goes on to say is extremely important, and I still believe that my amendment would achieve this, because it uses the words “directly” and “indirectly” when talking about moneys, resources or support from any source within the European Union. The Electoral Commission states:

“It is important that the legislation is clear about those organisations that can and cannot participate in the referendum. The Commission’s view—

wait for it—

is that the European Commission does not fall within the list of bodies that can register as a campaigner or donate to other referendum campaigners. This amendment is therefore unnecessary.”

However, the analysis that I have provided shows the reach of the tentacles of the European Union, driven by Mr Barroso and his successors—Mr Juncker and all the others. We must never forget that Mr Barroso has said that the European Parliament, and only the European Parliament, is the Parliament for the European Union. He and his successors do not believe in this Parliament. There is a lot of talk now about national Parliaments, but his comments are on the record.

The Electoral Commission’s view is that the European Commission does not fall within the list of bodies that can register as campaigners. We should look into that carefully, because if the Electoral Commission were wrong, the European Commission might manage to worm its way in, on the scale that it has at its disposal, and subsidise the yes vote. I understand that that happened in Ireland, not to mention other countries throughout the European Union.

The Prime Minister has said that we can find an answer to the problems inherent in the purdah question. The Government acknowledge that there are problems with section 125 of the 2000 Act, but they say that they will get around them. That would include dealing with the civil service, but we must remember that the civil service includes permanent representatives. Members who are new to the House may not know about COREPER, the Committee of Permanent Representatives, which is the most powerful body in the European Union bar none, because it stitches up deals between all the member states. As Chairman of the European Scrutiny Committee, I took evidence from our chief representative on that body. I emphasise to the Committee that the evaporation of section 125, combined with the monetary intrusion of the European Union, represents a monumental challenge to our democratic system.

Bernard Jenkin Portrait Mr Jenkin
- Hansard - - - Excerpts

My hon. Friend is explaining coherently how even though the European Commission does not consider itself to be a permitted participant or a permitted donor in a UK referendum campaign, its ability to fund bodies that will be participants or campaigners is unlimited. What about the Brussels-backed CBI, which has already received funds from the European Union, presumably to promote the EU? What is to prevent the CBI from receiving further funds? What restrictions will the Bill place on the CBI’s ability to receive such funds if it wants to donate to other campaigns?

William Cash Portrait Sir William Cash
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This is vital territory. In a nutshell, we will have to get it right. Opening the floodgates on that money would be devastating, especially if it were to be employed alongside the lifting of the restrictions in section 125, which would bring the whole panoply of the civil service into play. That would be a nightmare scenario, but it is a genuine possibility. I am not convinced that the European Union is not a foreign source, although I will look into that. We passed an Act of Parliament, the European Communities Act 1972, under which we absorbed into our legislation all the treaties and all the functions of the bodies in the European Union. Because they became part of our constitutional settlement—for the time being, I trust—I believe that it would be an uncertain, if not a dangerous, assumption to make that the European Union and the European Commission would not be construed as being based in the United Kingdom as well as in all the other EU countries, in other words, as not being a foreign source. This matter will have to be looked at very carefully. I shall consult and confer with my colleagues as to what we do about these amendments.

Angus Brendan MacNeil Portrait Mr MacNeil
- Hansard - - - Excerpts

Part of the difficulty that the UK has is the way that countries such as Ireland, Cyprus and Malta are to be treated. We also have the Foreign and Commonwealth Office; we do not consider Commonwealth citizens to be foreign but do consider some European Union citizens to be foreign. The Foreign and Commonwealth Office itself is anomalous because the Irish Republic is neither in the Commonwealth nor is it considered legally foreign in the United Kingdom. The United Kingdom’s own mess is contributing to some of the arguments that the hon. Gentleman is making.

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William Cash Portrait Sir William Cash
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I respond merely by saying that there are those who once described the Foreign Office as the Common and Foreignwealth Office, but that is another story.

Mark Spencer Portrait Mark Spencer (Sherwood) (Con)
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Will my hon. Friend help me to understand his amendment 10? It appears to bar people who want to engage in the process by donating to the in or out campaign from doing so because of their business interests. For example, a large agricultural company that was receiving basic payment scheme money from the European Union would not be able to donate to an in or out campaign because it was getting that assistance. The same could be said for many industrial companies that may receive grants to extend their factories, or other such support mechanisms.

William Cash Portrait Sir William Cash
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It is a question of the manner in which the funds or support are provided. As far as I am concerned, the framework of amendment 10 is to do with campaign funding and donations. The interstices and tentacles of the European Union are so extensive that we will keep bumping into these problems. The scale of the moneys in question is so huge that we have to be sure about this. The determination of the European Union bodies to keep Britain in the European Union is such that they will stop at nothing to use every means that they legally can to ensure that the money goes where they want it for the yes campaign.

I will confer with my colleagues on what we do about amendments 9 and 10.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
- Hansard - - - Excerpts

It is a great pleasure to follow the hon. Member for Stone (Sir William Cash). I associate myself entirely with the comments made earlier in welcoming him to this debate. I will often disagree with what he says, but I am delighted to see someone who goes to such efforts to express in this Chamber views that are very clearly and sincerely held. I always think that a sincere political opponent is the kind of opponent one likes to have a debate with.

I want to focus on amendments 53 and 32. I have some sympathy with the intention behind amendment 53, but from my experience of the referendum in Scotland last year, I suggest that the last thing anybody should want to do is to artificially restrict or control the number of individuals in organisations who can play their own small but important part in what should be a celebration of grassroots democracy if we get it right; it could be something very different if we get it wrong.

The Scottish independence referendum was the biggest celebration of grassroots democracy that I have ever seen or expect to see. That was partly because neither the political parties nor anyone else tried to artificially control who was and was not allowed to take part. I am sure that on a number of occasions the SNP’s lawyers were quite pleased that they were not in control of some of the things that were happening. That is what made it so much fun, that is what gave us a record-breaking turnout, and that is why public engagement in politics in Scotland is still at a much higher level than it was just a few years ago.

I caution the hon. Member for Gainsborough (Sir Edward Leigh) to be careful about artificially restricting this debate to the great and the good and suchlike. A lot of wee people out there have something important to say, and a lot of smaller organisations will have an important part to play, on both sides of the question. We should encourage them to have their say rather than artificially restrict them.

It is interesting to hear so many Conservative MPs complaining that they might get outspent in an election campaign; in almost 30 years of party politics, I do not often remember Conservatives complaining that an election was not fair if one party was being massively funded by big business and was able to outspend all the other parties combined by a factor of five or 10.

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Jacob Rees-Mogg Portrait Mr Rees-Mogg
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No, I am afraid that I fundamentally disagree with my hon. Friend. There are stages in this process. That is what the Bill and the Minister’s letter are trying to get at. The Government will have their renegotiation and then come back with a package saying it is a triumph, whatever is in the package. It might have three loaves and two fishes, or it might give us complete control of our own destiny—whichever it is, the Government will say it is a triumph. That will be the Government’s answer, and they can tell the electorate what they have managed to do. From then on, however, it will become a matter of straightforward politics whether someone believes the Government and agrees with what they have done. I approve of the adversarial system in this country. We do not develop our arguments and get to the answer we want by getting authoritative documents from the Government. Actually, such documents always contain a bias. It might not be obvious on first reading, but, reading through the detail, one will see the way the Government want people to go, and that will bolster the position they have set for themselves.

William Cash Portrait Sir William Cash
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I might be corrected by SNP Members, but, as I understand it, the Electoral Commission put out leaflets during the Scottish referendum campaign agreed between the yes and no campaigns. Even if that did not happen, it might be a way of dealing with the situation. The no and yes campaigns could exchange information and come up with a bottom line, and then that line could be taken and put as a fair choice.

Jacob Rees-Mogg Portrait Mr Rees-Mogg
- Hansard - - - Excerpts

I certainly see no impropriety in that. In the London mayoral campaigns, the views of all the candidates are circulated in a single booklet. That is not improper. Perhaps, however, I am more of a believer in capitalism, in respect of elections as well as the economic structures of the country. I believe that people should campaign for what they want, and should put their own arguments rather than thinking that they could be better put—or even well put—by a nominally independent third party, least of all the Government.

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Jacob Rees-Mogg Portrait Mr Rees-Mogg
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That is a very important point, which may be worth discussing when we debate other amendments. Ultimately, the Government must accept the will of the people—that is what we all believe in, and that is why we are all here—but they must deal with that fairly.

There is also the question of where the Government should proceed from here. There seems to be a wide consensus that paragraph 15 of schedule 1 is deeply unsatisfactory, and that the removal of the issue of purdah was simply a mistake. I am willing to trust the Government, so I accept that it was an honest mistake, and not a mistake that was made in an attempt to fiddle the referendum result. I believe that partly because I am a simple fellow who is very trusting of the Government, but also because trying to fiddle the result will damage whichever side wishes to do it.

The British electorate will not have the wool pulled over their eyes. If little bits of legislation are squirreled away into the Bill to make things easier for one side or the other, those of us who are on the other side will campaign on that basis. We will say, “Look, we need to act against this, because people are trying to fiddle us over what is happening.” There is a wonderfully contrary spirit among the British people, who will not be cowed by those who try to trick them.

William Cash Portrait Sir William Cash
- Hansard - -

The explanatory notes relating to section 125 of the 2000 Act were so explanatory that a line and a half said simply, “This is what we are going to do.” For practical purposes, I do not think that my hon. Friend would be entirely right in thinking that the Government got there by mistake, particularly as they had taken counsel’s opinion, which we are determined to ferret out.

Jacob Rees-Mogg Portrait Mr Rees-Mogg
- Hansard - - - Excerpts

I do not know too much about ferreting, or indeed about counsel’s opinion, but my hon. Friend knows only too well that explanatory notes are anything but explanatory. They consist of a complicated a set of notes which, when read carefully in conjunction with a Bill, can shed some light, but I do not think that anyone expects them to be like the Book of Revelation, revealing everything that one could possibly want to know about a Bill. They require Members of Parliament to look diligently at what underlies them.

The Government must examine clause 3 very carefully. They have given undertakings to do so over the next few months, but they need to come back with something that is just as rigorous as what is there already.

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Jacob Rees-Mogg Portrait Mr Rees-Mogg
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I entirely agree with my hon. Friend and that point has been made by my hon. Friend the Member for Stone. An uncharacteristically weak argument must have been given to the Minister for Europe to read out—he could not have made so poor an argument himself—when he said that if the negotiations have finished it would be very difficult for the Government not to be able to explain them immediately before the election. It cannot be that we will have the referendum two weeks after the negotiations have been concluded. That would be preposterous. There has to be a considerable period of time beforehand, so that what has happened can be understood, debated and campaigned upon. That must mean a period of a minimum of 28 days, as currently set out, but realistically we are going to need three months at the end of the negotiations before we can move straight to the referendum.

William Cash Portrait Sir William Cash
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My hon. Friend is developing an excellent argument, which perhaps brings out the fact that the amendment I have tabled specifies, fully supported by the Electoral Commission, at least a 16-week referendum period, and then it describes how it should be conducted.

Jacob Rees-Mogg Portrait Mr Rees-Mogg
- Hansard - - - Excerpts

I am well aware of my hon. Friend’s amendment, and I think the Government need to be thinking along those lines. I am going to support the Government this evening; I am not going to vote with my friends in the SNP on this occasion, or indeed with my hon. Friend the Member for Stone, which is more of a break with the habits of a lifetime. There is an important “but”, and I think other hon. Members on the Government Benches share my view: because the Government have made a mistake at this stage, they now need to come back with something better than we would have needed had they not made this mistake. Therefore, the Government’s position of purdah must be a stricter one than they might have been able to get away with had they simply amended the existing restrictions rather than taking them all away and having a completely clean base from which they could have done anything.

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John Redwood Portrait John Redwood
- Hansard - - - Excerpts

Indeed. I am speaking to amendment 10 tabled by my hon. Friend the Member for Stone (Sir William Cash), who seeks to clarify this point and prevent the use or abuse of EU money. I hope that the Minister will respond and that he will have his own proposals on Report. The Electoral Commission has given exceedingly good advice across the board on this referendum. It seemed to suggest that it would not be right for the EU to give money for the campaign, and it would be nice to have a reassurance that the Government share that view and accept the advice of that august body, which is there to guide us.

There is an additional issue with EU money, to which some colleagues have referred. What do we do about the EU money that is routed to bodies or organisations within the UK that choose to make a donation to a referendum campaign? That is another difficulty. As I understand it, such a donation would be perfectly legal because the organisation giving the money would be able to say that it had other sources of money and it was not a direct gift of EU money to the referendum campaign. Such a body may be swayed by the fact that it had had generous access to EU moneys in the past. While one would hope that none of them were donating for that reason, people would suspect that a body in receipt of substantial EU moneys in the normal course of business that saw fit to give money to the campaign to stay in would hope that the EU would be better disposed to it when it put in its next application for money.

William Cash Portrait Sir William Cash
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I do not know whether my right hon. Friend was here when we were debating part of this, but the Electoral Commission’s position is that a central principle of the regulatory regime that it supervises is that foreign sources of funding should not have undue influence on our democratic process. It has come to the conclusion that the European Commission does not fall within the list of bodies that can register as a campaigner. Does my right hon. Friend agree that we have to get to the bottom of that? It is highly arguable that the European constitutional arrangements are effectively embedded in our own constitutional arrangements by virtue of sections 2 and 3 of the European Communities Act 1972. We need to get this right.

John Redwood Portrait John Redwood
- Hansard - - - Excerpts

I was present to hear my hon. Friend speak to his amendment, and I am aware of the legal minefield that the provision could represent. That is why I worded my remarks cautiously—I said that I thought it was the view of the Electoral Commission that it would not be appropriate for the EU to spend money on the campaign. As he reminds us, it has made a clear statement about being a principal donor to the campaign, but there are other ways in which it could help, and it might argue that it was a domestic institution for these purposes. It might say that the EU’s writ runs within the UK. There is an office of the EU in London; it might try and route it through the London office. We need to say that that would be unwise. The Minister may think that it is illegal or that it should be impeded in some way. We need clear guidance from the Minister.

I return to the issue of indirect funding of the campaign by grant-in-aid to organisations that are helped or partially funded by the EU. Of course, it is a matter for the referendum campaign to argue over the rights and wrongs of EU funding. I am sure the no campaign will want to say that the money we send to Brussels and which it gives back to our organisations could be given to them directly by the United Kingdom Government if Brussels were not in the way. It could be pointed out that the £11 billion we send to Brussels in tax revenue is spent outside the UK, so, were we to leave, that money would be available for either tax cuts or extra spending in the United Kingdom.

That would be a matter of debate in the referendum, but an issue for the Bill relates to the legality, morality and political wisdom and judgment regarding the point at which an organisation becomes so dependent on EU funding that it has a very strong interest in it. Restrictions or limitations—or at least a declaration of interest—might need to be made if such a body decides to become involved in the referendum campaign. It would be wise to let people know of such a clear financial interest if the body played an important part in the yes campaign.

William Cash Portrait Sir William Cash
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Does my right hon. Friend think it would be possible to have a register of interests? Then, when companies go on the BBC and say, “We don’t want the United Kingdom to leave the EU,” we would know where their money comes from, what their actual policy is and the extent to which they are dominated by the EU system.

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John Penrose Portrait John Penrose
- Hansard - - - Excerpts

I will happily produce a d-minus election schedule. What I will not be able to do, because it has less to do with the Bill, is to say when negotiations might be complete. However, we will be able to work back and produce a schedule that indicates how the process could and should look.

William Cash Portrait Sir William Cash
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The direction of travel is good, because we are interested entirely and exclusively in one thing: not the views of Members of Parliament, but that the choice before the voters is fair. As the Minister knows, the Electoral Commission has supported my proposal. Will he re-engage with me if he has discussions with the Electoral Commission on his new proposal, so that we know which track the commission is going down and what its response is?

John Penrose Portrait John Penrose
- Hansard - - - Excerpts

I am happy to confirm that we have had discussions with the Electoral Commission—I am sure they will continue—about early or pre-designation, which will be an essential part of the alternative that I am suggesting to the hon. Gentleman. That will ensure that the 10-week official referendum period is not eaten into, leaving too short a time for a proper airing of the issues. I know that he is concerned about that.

While I am sure that the recent general election campaign was fascinating in all possible respects to everybody in this Chamber, it is possible, given that it started rather earlier than normal because of the Fixed-term Parliaments Act 2011, that in the minds of one or two of our constituents it might have dragged a bit by the end. I am sure we all had cases of knocking on doors when we were out canvassing during the campaign and people saying, “Oh God, I wish the whole thing was all over.” We need to take care not to go to the other extreme—I know that my hon. Friend is not suggesting this—of having an election campaign that is too long. We are already beginning the referendum campaign—it is clearly starting to gear up—and we need to be careful about going too far the other way.

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My hon. Friend talked about some of the organisations that are allowed to donate. There are very great existing protections to stop external non-British interventions in British elections of all kinds, including this one.
William Cash Portrait Sir William Cash
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The Electoral Commission’s view is that the European Union does not come within these parameters, but will my hon. Friend share with us the legal advice that the Foreign Office is getting? I think he can take it, though, that we shall be looking at this ourselves, because it is so important in terms of the volume and disproportionateness of the funds that will be available. As my right hon. Friend the Member for Wokingham (John Redwood) said, it is half our money anyway.

John Penrose Portrait John Penrose
- Hansard - - - Excerpts

My hon. Friend is absolutely right—it is half our money.

I have here the schedule of those who are eligible to donate to the permitted participants under the Act. It is all about UK-based organisations of one kind or another, be they third sector or private sector. Nothing anywhere would allow an organisation like the EU to get involved. The established protections have applied to British elections for quite a few years, and relatively successfully. I do not think that people feel there has been undue influence from organisations abroad in previous elections. The only changes we are making to those protections are, in effect, to make sure that Gibraltarian organisations can, if necessary, be part of the campaign actively or through donations.

My hon. Friend is aware—he mentioned it, as did a number of other colleagues—that the amendment as currently drafted probably has some rather serious technical flaws. He acknowledged that when he was talking about its underlying principles. Those flaws would, in particular, prevent a number of legitimate potential participants in the campaign from participating. For example, any farmer who had received payments under the common agricultural policy would potentially be excluded, as would any firm that had done business on the basis of trading with the European Union Commission. Civil engineering firms that have built roads in France, or indeed in this country, that have been paid for, even in part, by our money routed via the EU, would find themselves caught. In addition, the amendment does not have a time limit, so it would not only apply to the past couple of years but could affect anybody who has ever had any of this money since the EU was first started. Of course, that would be incredibly wide-ranging and could count out some entirely legitimate campaigning organisations or people who wanted to be involved.

Strong protections are in place, and we would need to be careful about the issue raised by the amendment.

John Penrose Portrait John Penrose
- Hansard - - - Excerpts

I was about to move on, but my hon. Friend wants to make one final point.

William Cash Portrait Sir William Cash
- Hansard - -

The BBC, of course, has been receiving money from the European Union, so my hon. Friend is right that I am concerned about that point.

John Penrose Portrait John Penrose
- Hansard - - - Excerpts

My hon. Friend has confirmed my view, and I am sure that we will continue these discussions.

I move on to amendment 53, tabled by my hon. Friend the Member for Gainsborough. I think his intention is to ensure equal force of arms on both sides of the debate. I was starting from a slightly different presumption: I think that both sides will be pretty well funded—there are well funded and strong views on both sides. There is no tradition in this country of overall, global limits on total campaign spending. As colleagues, including my right hon. Friend the Member for Wokingham, have mentioned, there are individual limits on constituency spends and national limits on individual political party spends. However, there is no overall global limit on the total amount that can be put behind a movement or campaign because other third party campaigning organisations, even after the closer regulation following the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014, can also contribute to the campaign behind a particular cause. As there is no limit to the number of organisations that can contribute, there is de facto no overall limit on the total that can be spent.

Opposition colleagues may dislike this example, but it may have resonance on the Government Benches. It is possible and entirely legal, under the right conditions, for trade unions to contribute to and campaign strongly in elections. There are constraints on what they can do, but it is entirely open to one union or 10 to contribute. If 10 contribute, the money that unions could spend goes up by a factor of 10. There is no overall global limit on the amount of money that traditionally can be spent in British elections, although there have been individual limits in specific constituencies.

I caution my hon. Friend a little. The hon. Member for Glenrothes rightly pointed out that people get enthused, excited and involved in political debate at different points and in different ways. If a campaign on either side captures the popular imagination and engages people, people who were not involved at the start can decide to become involved part of the way through. My hon. Friend’s amendment would limit the number of people to only those who were organised and enrolled at the start; once the maximum number had been reached, the gates would close and no one else could enrol.

It is an entirely unworthy thought, I know, but the Chief Whip and I suggest that one side could grab all the slots of eligible campaigners on the other side and then do absolutely nothing with those slots. That would effectively kibosh the other side. I understand my hon. Friend’s attempt to equalise force of arms, but I am afraid that things will not work as he has described. The amendment would also run counter to some deep-rooted, fundamental principles about how British democracy has worked.