Parliamentary Voting System and Constituencies Bill

Lord Maxton Excerpts

Wednesday 15th December 2010 Lords Chamber

[Lord Lamont of Lerwick]

The question about the internet is very important. Following on from the noble Lord’s point, can the Minister comment on information about the referendum that may be made available by the Electoral Commission on the internet? The Electoral Commission is entitled to issue neutral educational material concerning the referendum question but, in practice, I think that it is extremely difficult to be absolutely sure of the neutrality of any such material in such a presentation. The materials put out by the authorities in the New Zealand referendum led to considerable controversy, as there was an argument that, in listing the pros and cons, they were not impartial. I do not want to go on about this but I should be grateful for the Minister’s comments because the point about the internet and the Electoral Commission is very important.

[Lord Maxton]

My Lords, this is the first time that I have spoken in these debates. On the day on which we celebrate the fifth anniversary of the launch of YouTube, I think it is right that we raise the whole question of the internet and particularly that “channel”, although that is not the right word. Anyone could place a video on YouTube expressing their views in the hope that many people would watch it, and that could change the nature of the way in which we voted if there were not some way of controlling it. To be honest, it is extremely difficult to control what goes on YouTube but there certainly has to be something in the legislation that at least tries to do so.

[Lord Falconer of Thoroton]

My Lords, I indicated in my remarks on the first group of amendments that I proposed to Clause 5 that the clause was introduced to deal with the problems identified by the Political and Constitutional Reform Committee in the other place. In principle, we think that it is a good thing, although other issues need to be dealt with, including the point about the internet made by the noble Lord, Lord Lamont.

I have one question for the noble Lord in relation to that. On the face of it, any expenses incurred in making a broadcast for a referendum—for example, if you got Steven Spielberg to produce it and my noble friend Lord Puttnam to direct it, or the other way round—would not count as expenses. Is that really the Government’s intention?

On a general point, can the Minister say what principles underlie Clause 5 and, in the light of those principles, what is the answer not just to the questions that I have raised but to those raised by other noble Lords?

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[Lord McNally]

I did not say that, but that gives the opportunity for another intervention.

[Lord Maxton]

In that case, as the noble Lord agrees that it was not the 1975 referendum, which specific referendum was it? When was it held and what election was it? It was certainly not in Scotland, where there is a very important election on 5 May next year, even if he may consider the local elections down here not to be very important.

[Lord McNally]

I did not say that it was in Scotland. As my noble friend just reminded me, the London elections were held on the same day as a referendum. Come on, let us carry on.

If there were advertising on the internet, that would be caught. Again, I am quite willing to look at the issue of the internet. I do not accept the intervention by my noble friend Lord Lamont. I think that the Electoral Commission has acted impeccably, and I have every confidence in it. I was one of those who supported from the very beginning the idea of experienced politicians serving on the Electoral Commission. Happily, all three major parties plus Mr Reid from the SNP now serve on the Electoral Commission, and I think that it is all the better that there are people who have had direct experience.

As I said, I do not think that there is any problem about this. As was said during debate on the amendments, we will look at the specific points raised by the noble and learned Lord, Lord Falconer, in his second amendment. What happens in the coalition is a matter for my right honourable friend the Deputy Prime Minister, who is handling this from the Cabinet Office with my honourable friend Mr Mark Harper. I will, as always, report to them on the debates in this House. We will then discuss, on a governmental basis, our response to them. It must be to the great depression of the Opposition to know that we do this in a seamless fashion which produces none of the frictions alluded to by the noble Lord, Lord Campbell-Savours.

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[Lord Howarth of Newport]

Do we not need to learn the lesson from, for example, the referendum on a regional assembly in the north-east, where the no campaign was led by business interests? That campaign was relatively well-funded and was clearly against Labour Party policy. In effect, therefore, it was significantly in the interests of the Conservative Party. Does the Minister feel that the lessons of that experience have been adequately absorbed and that the existing legislation to which the noble and learned Lord, Lord Mackay of Clashfern, referred satisfactorily covers such circumstances? Or does he feel that the legislation governing referendum expenses needs to be brought up to date in the light of that example of how money can be spent in a political cause but not overtly by a political party?

[Lord Maxton]

The noble and learned Lord, Lord Mackay, mentioned the internet. Perhaps I may give an example to follow on from what my noble friend Lord Howarth said about business people. Sir Sean Connery is a major benefactor of the Scottish National Party, but he is not a taxpayer in this country. He is not therefore bound by rules on expenditure if he is spending that money on advertising via the internet rather than by other means. I presume that there will be other business people, some from the Conservative Benches, who may be in the same position; that is, they are non-taxpayers but can use their money to influence the referendum through the internet in a way that is uncontrollable by the Act.

[Lord Lipsey]

A little while ago, Members intervening from this side said quite reasonably that they were not trying to delay proceedings by more than they needed to and were being as succinct as they could. The Minister said that it would speed things up if noble Lords would stop saying that. Will he consider an offer whereby we stop saying that if he stops implying that this side is trying to filibuster on this Bill, when it is trying to subject it to correct and proper parliamentary scrutiny?

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[Lord McNally]

I know a little Labour Party history. It was Jimmy Maxton, not Jimmy Thomas, who said that. The noble Lord can have a large bet on that; I know that he is a betting man.

[Lord Maxton]

The second part was also credited to Jimmy Maxton at the time.

[Lord McNally]

However, I am not trying to ride two horses at once. We are saying that we are confident that the present regulations are robust enough for conducting this referendum. I have paid tribute before: the PPERA 2000 regulates these campaigns and parties; individuals and other organisations are controlled by that regulation. Donations above £7,500 have to be declared to the Electoral Commission and made public as another guarantee of transparency.

The Electoral Commission itself has welcomed this clause, and says that the provisions will provide transparency about the use of loans and similar arrangements on commercial or other terms to fund campaigning. Registered campaigners will be required to report certain information about such transactions in their referendum expenses return, along with the information on donations that the PPERA already requires them to report.

We have already referred, several times in this debate, to how referendums have influenced the development of law. There is no doubt that this referendum will provide an important test of the PPERA framework. The Government have said, in their response to the Lords Constitution Committee report on referendums, that we will review the effectiveness of the PPERA generally after the referendum. In addition, the Government note that the Committee on Standards in Public Life has said that it will examine whether any changes are necessary in the rules relating to the funding of referendums, as part of the wider review into party-political finance.

Basically, we are tightening up the rules on finance in Clause 6. The amendments are not necessary. The Bill contains the necessary schedules to run this referendum fairly. We have confidence in the Electoral Commission and its powers to run it fairly. We hope that the House will not—

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[Lord McNally]

Such expenditure would have to be reported to the Electoral Commission, and it would then be published. Actually, I will not bother with this advice. I have every confidence in my advisers but this would provoke another 10 interventions.

[Lord Maxton]

In relation to that very correct question, the Minister says that it is down to accountability and that they would have to make it public. The problem, however, is that the accountability and the public announcement come after the referendum, not before and not during. So what if the individual has spent the money? It will not matter.

[Lord McNally]

Those expenditures are reported on a regular basis. If there was an attempt at such an intervention, it would probably play quite a negative part.

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[Lord McNally]

I am sad to say that not only am I old enough to remember that referendum but I was adviser to the Foreign Secretary of the day. My memory of that referendum, which gives me real confidence about this one, is that the Labour Government had an agreement to differ, which allowed the various parts of the Labour Party to campaign vigorously on either side of the debate yet come together again after the decision of the people. That is why I have every confidence that the same will happen again next May. I have no doubt that individuals in the coalition will take different views. I think that my noble friend Lord Strathclyde has said that he hopes to campaign up in Scotland with the noble Lord, Lord Foulkes, which is a frightening thought for anybody.

[Lord Maxton]

Like my noble friend Lord McAvoy, I was part of the no campaign in the 1975 referendum. I remember that the government leaflet was not as balanced as everybody thought; in fact, it was very much in favour of the yes vote. Will the Minister answer the question that my noble friend Lord Gilbert put? Do the Government intend to produce a leaflet in favour?

[Lord McNally]

No, the Government do not intend to produce a leaflet. No, the Government do not intend to rig the referendum.