Transparency of Donations and Loans etc. (Northern Ireland Political Parties) Order 2018

Lord Tyler Excerpts

Tuesday 27th February 2018 Lords Chamber

These are not just Northern Ireland issues but key issues of public interest concerning the donations given in the period 2014-17. They are central to the Brexit referendum campaign and how it was funded, and key issues of transparency and trust in our electoral process. I beg to move.

[Lord Tyler (LD)]

My Lords, I am pleased to support the amendment to the Motion in the name of my noble friend Lady Suttie. However, before I give my detailed reasons for so doing, I want to touch on the role and responsibilities of your Lordships’ House in matters of this sort.

Last night, in concluding the debate on an amendment relating to Europe’s foreign and security policy, my noble friend Lord Wallace of Saltaire made a number of references to the present Foreign Secretary. This was especially relevant, since there had been some very instructive comparisons to previous Conservative Foreign Secretaries, including the noble Lord, Lord Carrington, and Douglas Hurd and Geoffrey Howe, as they then were. There was an especially trenchant speech along these lines by the noble Viscount, Lord Hailsham, himself a former Foreign Office Minister, to which the noble Baroness answering for the Government failed completely to reply—perhaps because his case was unanswerable. At that point, the noble Earl, Lord Howe, intervened to say:

“I think it is against the rules and the spirit of this Chamber to criticise a Member of another place by name. I hope that the noble Lord will see fit to moderate his comments accordingly”.—[Official Report, 26/2/18; col. 508.]


Like many others in the Chamber, at that moment I was so stunned by this suggested new rule that I did not have time to consult the Companion, although I did have my copy with me. However, I have since read it very carefully and I simply do not understand what the noble Earl was saying. I mentioned to his office that I was going to raise this issue this afternoon because it is relevant to all the business of your Lordships’ House. I have checked the Companion today and, frankly, I do not understand what exactly it was that caused such concern to the noble Earl. As my noble friend referred only to the Foreign Secretary by his correct ministerial title—not by his name—I do not understand what the noble Earl was alluding to. This is a key issue for the way in which we do business in this Chamber. If we are not free to criticise a Minister and his or her words in their ministerial capacity, then clearly that restricts and constrains the work of your Lordships’ House. I hope the noble Earl will reconsider that statement. In the meantime, I believe that I am at liberty to criticise the Government—and hence, individual Ministers speaking and acting on their behalf—in relation to this order.

My noble friend Lady Suttie has fully explained the origins and circumstances of the order. At its heart there is a continuing suspicion of serious political money laundering. The basic facts are not in dispute. The DUP received a sum approaching £500,000 from an undisclosed source for its campaign in the 2016 EU referendum. Despite supporting leave while the majority in Northern Ireland supported remain, the DUP chose to spend £425,000 on paying for wraparounds for the Metro newspaper, which does not circulate in Northern Ireland. Exclusively, therefore, that was targeted at electors on this side of the Irish Sea.

I have a few specific questions for the Minister to underline and supplement those that have already been posed by my noble friend Lady Suttie. First, why was the order not brought forward, at the very latest, in the last Parliament? As we have heard, it was anticipated that the transparency provisions could be extended to Northern Ireland at any time after January 2014 under the 2014 Act. This was the firm intention of the then Alliance MP, Naomi Long, at that time. Why the delay?

Secondly, was it a coincidence that the ministerial decision to restrict the retrospectivity to carefully avoid any reference to the transaction to which I have just referred came just a few days after the Government had to pay a price for DUP support in the Commons having lost its majority in the summer of 2017? What representations did the DUP make about timing? Was that part of the deal? Having accepted the retrospective application of this order, albeit by only a few days, surely the Secretary of State should at least have been prepared to explain why that retrospectivity could not have been extended that bit further on the lines that my noble friend has said. His letter to MPs of 6 July 2017 sidesteps that issue.

Was the Secretary of State briefed on the potentially illegal donation involved? Had any checks been undertaken at that stage as to whether it had been made through any intermediary—perhaps by a foreign agent? We now know that the Russians took a considerable interest in the outcome of our referendum. Perhaps it was Russian money being channelled by this means and covered by the particular process that was used. Was the Foreign Office consulted on this potential interference in UK politics? Has it been since?

What detailed analysis and recommendations have any Ministers received from the Electoral Commission on this episode? Has not the Northern Ireland commission head argued for the transparency to go back to 2014? The outgoing head of that commission has stated that:

“The deal on party0 donations and loans must be part of the DUP-Conservative deal. No other explanation”.


“Every party in Northern Ireland understood that the publication of political donations over £7,500 was to be retrospective to Jan 2014”—


as my noble friend has already emphasised.

Meanwhile, have not all the Northern Ireland parties, including the UUP but not the DUP, now confirmed that they would be happy for retrospection to go back to the originally planned date in 2014? The Minister and my noble friend have mentioned the possibility of further action to undertake this reform. When will we see that, because surely there need be no delay? It is a simple matter.

Finally, has the DUP privately informed the Secretary of State or the Electoral Commission who the original donor was? What was the source of that very considerable sum? Are the Secretary of State and the commission both fully satisfied that the donation was legal under the PPER Act 2000?

If any Members of your Lordships’ House doubt the public significance of this order and think that it is just technical, let me read, from the excellent advice provided by our Library, this list of relevant publicity. I will take only a few examples but there are plenty here: the Belfast Telegraph article of March 2017, “End the secrecy over political donations in Northern Ireland”; Julia Paul’s article of June 2017, “Bringing Northern Ireland’s political process in line with the UK”; the BBC News articles, “Political donations: NI Secretary to address transparency issue” and “Donations to Stormont parties to be published”; the Open Democracy articles from October 2017, “The ‘dark money’ that paid for Brexit” and “UK Government set to ignore Northern Ireland parties’ transparency calls”; the Open Democracy article from 19 December 2017, “Why is Theresa May protecting the DUP’s dirty little (Brexit) secret?”—that of course was while the House of Commons committee was looking at this issue; the Belfast Telegraph article on 19 December 2017, “DUP calls for foreign donations to Sinn Fein to be made public”—the DUP seems to be selective in terms of what transparency it supports, although it seems to be okay to demand it of Sinn Fein, which is somewhat ironic in the circumstances when the DUP has defended its own secrecy; and the Guardian article of 19 December, “Labour criticises move to let past donations to DUP stay hidden”.

These are serious concerns and issues that do not touch only on Northern Ireland. As my noble friend Lady Suttie has said, the integrity of our whole democratic system is involved in this issue. It was the subject of some debate in your Lordships’ House, including on my Private Member’s Bill on the issue of money and its power in British politics.

Unsurprisingly, the members of the Delegated Legislation Committee in the other place took this order very seriously indeed, and allowed it through by only nine votes to eight on 19 December last, under government pressure. I suggest that we, too, should take it very seriously indeed and demand answers to these questions from the Government.

[Lord Browne of Belmont (DUP)]

My Lords, I rise to support this order, which I firmly believe will provide a framework of openness and transparency in relation to donations and loans to political parties in Northern Ireland. Given the improved security situation, it is now the right time to bring Northern Ireland legislation in this field into line with that in the rest of the United Kingdom.

As we have heard, the Secretary of State for Northern Ireland sought the views of all the local political parties in January 2017, and there was general support for full transparency. At the time, only one party suggested that the implementation of the new rules should be back dated to January 2014. However, in recent months there has been considerable debate in the other place concerning this date, and the amendment tabled by the noble Baroness, Lady Suttie, supports retrospective implementation backdated to 2014. I acknowledge that this earlier date was referred to in the Northern Ireland (Miscellaneous Provisions) Act 2014, but in my view retrospective legislation is acceptable only in exceptional circumstances. It is simply not fair to reveal the identities of those who made donations on the assumption that the law as it stood at the time would apply.

Several critical comments have been made in the debate concerning the donation which the Democratic Unionist Party received during the 2016 European Union referendum campaign from the Constitutional Research Council. I would simply point out that the donation was declared and the name of the organisation was provided. The uses to which the money was put were fully disclosed to the Electoral Commission, which accepted the bona fides of the council.

I recognise that current UK legislation relating to donations by and to political pressure groups is perhaps inadequate in some respects. I am sure that we are all aware of the recent controversy concerning the large donation to the political pressure group Best for Britain by the Open Society Foundation. However, this is perhaps a matter for consideration by the House at a later date.

In concluding, may I ask the Minister for clarification regarding the treatment of foreign donations to Northern Ireland political parties? As noble Lords will be aware, foreign donations to UK political parties are prohibited under the Political Parties, Elections and Referendums Act 2000, but donations and loans from certain Irish citizens and bodies to Northern Ireland recipients are excluded from these provisions. This order now provides that certain sensitive personal information relating to these persons and bodies will not be published by the Electoral Commission. Will the Minister confirm that all the transparency requirements, including personal identification, that will apply to United Kingdom donors will also apply to Irish donors? I am pleased to support this order.