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

Bob Stewart Excerpts

Wednesday 22nd January 2014 Commons Chamber

[Mr Allen]

It is a continuing affront to our democracy, and I hope that Ministers—and future Ministers—will take this to heart and consider how the process of effectively scrutinising legislation can be amended.

I will now advertise another report by my Committee on the quality of legislation. It suggests, for example, mandatory pre-legislative scrutiny of all Bills, apart from emergency ones. That is not from a desire to delay any legislation. I believe that in our form of democracy, the Government should get their business through. The contribution that Parliament makes is to ensure that legislation is more effective. Otherwise, we have to come back until we get it right—in this case, after the next general election. It does not save time to keep coming back to the House, as we did—infamously—on criminal justice Bills under the last Government, tinkering year after year and with Ministers getting the prestige of having a Bill before the House. Instead, Governments should listen to the House and get legislation closer to being right.

I agree with my hon. Friend and I hope that pressure from Back Benchers on both sides of the House will force our Front Benchers to agree a better process of involving Parliament in partnership with the Executive.

[Bob Stewart (Beckenham) (Con)]

I thank the hon. Gentleman, whom I consider to be my friend, although technically he is not so in this House. I am grateful for all the work he, his Committee and the Clerks have done and the briefings they have sent us. I, too, am concerned about the shortage of time. How long does the hon. Gentleman think we should have had between the other place considering this matter and it coming before us?

[Mr Allen]

Given that the Government want to get the Bill implemented in order to influence the expenditure limits in the next general election, I do not maintain that it should be held over for months and months. Hon. Members may wish to read the report from my Select Committee, which we produced last night, starting at 6.30 pm, and which I delivered by e-mail to every Member just before midnight. If the hon. Gentleman and his colleagues are prepared to say, “These guys are serious, and we should at least have a look at their report”, I suggest that we should have at least two days to read the papers and to table measured amendments.

Thanks to the great assistance of the Clerks, I was able to table several amendments on behalf of my Committee last night, but I imagine that few hon. Members know their way around the Order Paper well enough to do that. The Table Office was open until 10 this morning, which means about two working hours for colleagues to read the report, listen to the Government, read the proceedings in the other place and decide whether to support an all-party view—as expressed in the report—and to table, as some have managed to do, their own amendments. The way we conduct our business helps us to get better law. It means that what we produce will stand the test of time, rather than need reviewing or stitching back together when the gaps appear over the next few years.

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[Bob Stewart]

Does the raised amount include staff costs?

[Mr Lansley]

Yes. The registration threshold is the threshold of expenditure at which one is required to register, and all the limits for the registration threshold and the total spending limits are in relation to the definition of controlled expenditure which includes staffing costs for third parties.

Lords amendment 20 increases the spending limits—not the registration thresholds—for Scotland, Wales and Northern Ireland by £20,000 each. This is an increase from the levels set in the Bill when it went to the Lords. The new limits will be £55,400 for Scotland, £44,000 for Wales and £30,800 for Northern Ireland. Campaigners have argued that the spending limits for those parts of the United Kingdom were disproportionately low—so low in fact, that they might force campaigners to step aside and not participate in elections. It has never been our intention to prevent third parties from campaigning altogether. They are a key aspect of the democratic process and, to ensure they remain so, the spending limits have been raised to more suitable amounts.

Lords amendment 18 relates to coalitions. It is important to recognise that the Bill did not change the regulatory regime for coalitions, but the debate on the Bill has enabled us to identify a change that will help campaigners that do incur small amounts of expenditure. The Government received many representations on the existing PPERA regime on coalitions. The concern was that the Bill’s provisions would put onerous reporting burdens on them. This fear was particularly pronounced in relation to those who often campaign as part of a coalition.

This new procedure introduces a new framework. A third party may participate in as many coalitions as it wishes. When it takes part in this procedure, it will not have to report for its expenditure, provided it does not incur total spend above the registration threshold—the numbers to which I just referred. The third party would take on the status of a “minor campaigner”. Another third party who agrees to act as a “lead campaigner” in the coalition’s common plan would instead report the expenditure it and the minor campaigner had both incurred. As with the registration thresholds, this provision is also intended to reassure small spending campaigners that new burdens will not be imposed upon them. Indeed, it will reduce the burden compared with the regime in the 2000 Act.

Lords amendment 28 removes the post-dissolution constituency limit of £5,850. Campaigners may now spend the entire constituency limit of £9,750 at any time during the regulated period, or just in the last few weeks before the election if they so wish. That makes it less restrictive and easier to comply with.

Lords amendments 91, 94 and 96 shorten the length of the regulated period for third parties. The regulated period is the time before an election within which only limited expenditure can be incurred, and certain campaigning rules must be observed. Reports must be submitted to the regulator. The regulator, the Electoral Commission and campaigners have argued that they need more time than the Bill would otherwise allow to understand fully the new rules and their responsibilities under them. The Government agree about the need to ensure suitable guidance is in place for campaigners. If the Electoral Commission needs further time to produce this guidance, and ensure it is relevant, clear and useful, the regulated period can be shortened to facilitate that. That is why the regulated period for third parties, for the purposes of the 2015 parliamentary general election only, will be reduced to seven and a half months—starting immediately after the Scottish referendum—instead of the usual twelve months.

Let me stress that the regulated period for political parties is not being similarly reduced.

The Lords have also introduced amendments to allow royal chartered bodies, charitable incorporated organisations, Scottish charitable incorporated organisations and Scottish partnerships to register as a recognised third party. This reflects the fact that the list of bodies that can register as a third party has not been updated since 2000.

The Lords have made further amendments that seek to reduce unnecessary burdens on recognised third parties. As a result, recognised third parties will have to provide a donations report to the Electoral Commission only when they receive a reportable donation of £7,500 or more. There will no longer be a requirement to provide nil reports. In addition, a recognised third party will no longer have to provide a spending return or statement of accounts if it only incurs controlled expenditure below the necessary registration threshold. When a recognised third party has to provide a statement of accounts, this can be sent to the Electoral Commission in a longer time frame—within nine months of the end of the regulated period, if they do not have to be audited, or 12 months, if they do have to be audited.

On non-party campaigning, in order to ensure that the provisions of this Bill are subject to review, Lords amendment 88 stipulates that the Government must, within twelve months of Royal Assent, appoint a person to review the operation of the PPERA provisions, as amended by this Bill, at the next general election. The findings of that review must be laid before Parliament within 18 months of the next general election—that is, by November 2016. The review will provide a unique real-time opportunity to assess how the new regulatory regime is operating, in good time for the 2020 general election.

Lords amendment 87 is not about non-party campaigning. It introduces a new measure to ensure that candidates’ personal expenses will be excluded from counting towards their election expenses limits at local elections in England and Wales. This change will harmonise those arrangements with the existing situation for parliamentary elections, police and crime commissioner elections and Greater London authority elections, at which personal expenses are already excluded from candidates’ expenses limits.

This change has been brought about principally so that disabled candidates are not unfairly penalised for incurring disability-related costs, which can often be quite high. The need for the change became apparent following the creation of the access to elected office for disabled people fund. The fund was established by this Government to provide grants to disabled people who are, or who go on to become, candidates at elections. The fund provides grants to help candidates to overcome any barriers to elected office that might arise as a result of their disability. However, electoral law considered those grants to be personal expenses and therefore deductable from candidates’ election expenses limits at local elections—the one poll where personal expenses counted towards a candidate’s expenses limit.

Lords amendment 87 therefore brings the treatment of personal expenses at local elections into line with the arrangements for other polls where they are already exempt. It would be particularly unfair to penalise disabled candidates standing at local elections for accepting fund grants or even incurring their own disability-related costs. The amendment does not as yet extend to local elections in Northern Ireland or Scotland, as those polls are devolved. However, we will work with the respective Governments to ensure that there is consistency.

Much work has been done in this House, in the Lords and with external stakeholders to ensure that the Bill meets the principle of enhanced transparency for third parties who want to influence the outcome of elections, while preserving the essential freedom to speak out on issues. I should like to thank those who have contributed to the debates, and I reiterate my thanks to my noble Friends in the House of Lords. As has been said many times before, the purpose of the Bill is to bring greater awareness and clarity to campaigning activity. I believe that, through these amendments, that is what we can achieve.

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[Stephen Twigg]

I will take the Leader of the House at his word. Let me say “the relevant amendment”. I believe this relevant amendment is modest. It is primarily about not the costs themselves but the additional bureaucracy that this would involve. For many smaller charities, it would be incredibly difficult to differentiate the amount of time that the staff member spends on these activities from the time they spend on other activities. My hon. Friend the Member for Denton and Reddish (Andrew Gwynne) mentioned Lord Harries of Pentregarth. What he said in the other place is worth considering. It is easy to assess the amount of money that one will spend on hiring the hall for a public rally, because there is an invoice. However, there is no invoice for a member of staff or for the 10% of the time spent over four weeks carrying out the work.

[Bob Stewart]

Small charities will get nowhere near their limits, even if they put in all their staff costs. I suspect that charities will not have any problems with the limits whatsoever.

[Stephen Twigg]

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

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

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

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

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

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