Trade Union Bill

Lord King of Bridgwater Excerpts

Wednesday 10th February 2016 Lords Chamber

[Lord Collins of Highbury]

If the noble Lord wants me to give a long lecture on the Collins review, I shall be very happy to do that. I am glad that the noble Lord, Lord Maude, is here because, prior to the Collins review, he and I sat down for nearly a whole year and talked about party-political funding. During that time, never once did we think of changing the current arrangements by statute. Opting in and opting out of a political fund is not simply a matter about party funding, and of course not all unions are affiliated to or give money to the Labour Party—they use their political funds for a range of purposes. My concern about these proposals does not relate simply to Labour Party or party-political funding; we will come to that.

The question of the current ability to opt out of the political fund arrangements is dealt with in the amendments. Should we reinvigorate the voluntary code in addition to the 10-yearly ballots? You can hardly say that during those ballots people are not notified about the existence of a political fund.

I know that I am a lot older than I look, but I remember when the original 1984 proposals came in. In fact, I was partly responsible for implementing them. There was a genuine concern in some quarters, with people asking, “Do people know about political funds? Do they know what we’re doing?”. In some respects it was a challenge for the trade unions—as with all threats, they are often challenges. The 1984 proposals made unions go out and make a strong case for their political funds. What was the result of the 1984 Act? It was not that some unions decided not to have a political fund. Every single union that had a political fund in 1984 adopted the resolution, through postal voting by their members, and kept their political fund. But the 1984 provision also made other unions think that perhaps this would enable them to have a voice, which they had not had so far. As a consequence of the 1984 Act, we ended up with more unions having political funds than had been the case before, so the challenge was important and it was delivered upon.

If there is a problem concerning the right of members to say for religious, personal or other reasons, “I don’t want any of my union subscription spent on political purposes”, then let us address it properly. The Collins report was about the relationship between the Labour Party and the trade union movement. It asked: has that relationship since 1900 worked properly? In 1920, we adopted a constitution that introduced individuals into the party. There was then a dichotomy, with individuals and affiliated organisations, and the question of the balance of responsibility between the two groups. That is our tradition; it is our heritage. We are not going to turn the clock back and say that how we have become what we are is unimportant. We need to understand the journey and, sometimes, that journey leads us to changes that need to be made; for example, when we reformed the way that we conducted our business. That is the context of the Collins report.

My noble friend Lady Smith will address the point about whether to opt in or opt out of political funds in the next group, so we will have two bites of the cherry—the next group but one, sorry; I forgot about the amendment in the name of my noble friend Lord Campbell-Savours. I do not know how the Minister covers so many groups. The point is that there are issues that need to be addressed here. The Government are imposing, with a 12-week transition period, incredible burdens on unions and making it extremely difficult for these provisions to be implemented. In some respects, it makes one feel that the whole purpose of the exercise is to make it so difficult that not many people will opt in. I know that my noble friend will address this, but when Sir Christopher Kelly and Hayden Phillips looked at this issue in the round, they concluded that a transitional period was necessary and that it should be five years. That was in the context of taking big money out of politics, donations and interparty talks.

I want to focus on the specifics. The amendments I have put down are about the ways we can ensure that, if this is going to go through, it is not deliberately causing difficulties for the union or individual members. Why is there a five-year opt-in period? Why do people have to do it again? If someone does not opt in again after five years, why is the default position that they are out? What is that provision for? Bear in mind that, in addition to the requirement to opt in, the 1984 Act will remain on the statute and requires unions to conduct a ballot every 10 years on whether they have a political fund. Why is there a five-year review? It is unnecessary and, I think, being done deliberately to ensure that people will not be in the political fund.

One issue I have some concern with is the Government saying that there is no evidence that there would be a substantial attrition in membership resulting from this lapsing after five years. But look at any evidence about making people do something positively. It is a bit like signing a donor card and then being told that you will have to sign it again every five years. I know what the medical profession would say to that: it would not be very happy. I do not know why this is being applied here at all.

Through the details of each of my amendments, I want to probe exactly what methodology the Government are proposing. Perhaps the Minister can explain what “in writing” means. She has had tremendous responsibility in digitising the economy and making sure that we have modern methods of communications—apart from, as I heard in the background from my noble friend, for the unions. Unions cannot adopt modern methods of communication or proper processes that will ensure success. No, it has to be “in writing”.

If this requirement does come into effect, why have the Government not considered the possibility of applying it only to new members? Why are the unions being given the huge task of going back to members who have understood themselves to be part of the organisation to ask them to opt in? The Government are making retrospective legislation, in some senses. Why has a gradual approach not been looked at? These are issues that we need to look at in some detail.

[Lord King of Bridgwater (Con)]

My Lords, I feel that, in a sense, these debates are in the wrong order. The noble Lord is talking about the various ways in which, if the Bill is brought in, it might be improved. The noble Lord, Lord Monks, has tabled an important amendment which goes to the heart of the matter and the fundamental reasons we are here in the first place, and I think the Minister will have something to say on these issues as well. I do not know how we are going to deal with these issues. They are very important, and I understand the sensitivities and deep feeling involved. It would be a good idea if we could somehow get the amendments in this debate in the right order. I do not know whether to foreclose on this, but perhaps we should deal briefly with these particular amendments and then get to the heart of the matter.

--- Later in debate ---

[Lord Stoneham of Droxford]

Are we not going to have a preliminary debate on this? I want to make the same point as was made by the noble Lord, Lord King. We have already had a long debate on this section and have decided that the matter will be referred to a Select Committee, which is now taking evidence. Therefore, I do not intend to make a long speech on these amendments, for the very reasons that the noble Lord, Lord King, said.

I do not want to go into all the arguments as to why the Select Committee is important, but, in parenthesis, and so that I do not have to say much more in this series of debates, I want to say three things. First, the Select Committee received evidence from the Certification Officer when it was in public session. As I understand it, he said two things. One is that he was never consulted, which is surprising if we are trying to look at responsible legislation, because he is going to have to implement it. The second thing he said is that he has had to deal with very few complaints on opting-in and opting-out issues.

Secondly, I want to make a general point about the amendments in this group, and particularly the reference to “electronic means”. If we want a way to encourage people not to opt in, it ought to be in writing because, these days, nobody responds to correspondence in an efficient and effective way, but they do respond to emails. To have the Minister, a pioneer of the digital age, advocating that all the replies should be in writing is, frankly, taking us back to the horse and cart. That is very important.

Thirdly, government Ministers do not have to employ an army of special advisers to advise them on the best way of doing the Labour Party down. I am sure that there are behavioural scientists who advise the Government on how people respond to government correspondence. They know exactly what happens when you take a certain action. If you stick to the writing, rather than going electronic, you are just encouraging the destruction of the funding of the Labour Party.

Nobody has more interest than this side of the House in getting political funding reform, I can tell you. But as we said in the debate, we want to make sure that this is a fair package which is agreed. If you do not, it will be open warfare in the future and your individual donations will be under attack—

[Lord King of Bridgwater]

My Lords—

[Lord Stoneham of Droxford]

Yes, I know. I am getting there. I am quite entitled to make my points, as the amendment has been moved. I do not intend to say much during the debate, but those points needed to be made.