Control of Donations and Regulation of Loans etc. (Extension of the Prescribed Period) (Northern Ireland) Order 2011

Lord Smith of Clifton Excerpts

Monday 7th February 2011 Grand Committee

[Baroness Royall of Blaisdon]

My Lords, I am grateful for the clear explanation from the Minister in what is rather a complex area. We note the strong support for lifting the exemption in place in Northern Ireland; I think that 77 per cent of respondents suggested that they were in favour of that. However, despite the enormous progress in Northern Ireland over recent years, we appreciate that the political situation there continues to be sensitive and that caution is required.

It is interesting that 12 per cent of respondents—the same number who supported the Government’s position of no change—supported option 3. As noble Lords know, that option is the current exemption with some modifications—for example, publishing the amounts received, the recipient, and whether the donor was an individual or a company. In principle we support greater transparency in the Northern Ireland political and electoral system but, given the serious and difficult security situation, we understand that a responsible Government need to exercise caution. We consider that option 3, which was canvassed in the Northern Ireland order consultation paper, struck a good balance between protecting the security of the people participating in the political process by providing donations and loans, and the expectation of the public to have transparency in the electoral system.

This is an important order so, as the Committee would expect, I have several questions to put to the Minister. He gave various reasons for continuing the current exemption unamended, but I wondered why the Government happened on two years. What is the rationale for that? He rightly mentioned the intimidation that is taking place. What are the Government planning to do to reduce the risk of intimidation that currently prevents the details being released? Will the Government use the two years’ extension to develop and implement a more transparent system for political donations and loans of the kind considered under option 3?

Paragraph 12 of the Government’s response to the consultation document said that the department would examine the possibilities of making option 3 transparency changes through secondary legislation. It would be helpful to have further clarification on that point. What options and types of transparency changes is the department looking at? What is the originating primary legislation power that would enable such secondary legislation to be made? What is the timeframe for this work? Finally, will the public be consulted on the possible options?

I hope that noble Lords will forgive this raft of questions, but they are very important. I look forward to the Minister’s response.

[Lord Smith of Clifton]

My Lords, I, too, thank my noble friend for introducing this order. Bearing in mind that the Belfast agreement took place in 1998, it is very depressing that here we are and we cannot have normal conditions obtaining in Northern Ireland. I take some heart from the fact that it is only a two-year extension, by which I mean, pace the noble Baroness, Lady Royall, that a signal has been given to the political parties that this is the last time that the order will be continued in its present form. I hope that it will lapse. As the noble Baroness, Lady Royall, has said, there have been great steps forward—after a very irregular start since the Belfast agreement when we had the suspension of Stormont—but we should look forward to normal transparencies obtaining.

To get a sense of the order of magnitude, I should like to ask my noble friend if for the past financial year he can indicate the totals of donations by party. While I appreciate that for the current year we might see an increase in donations because it is an election year, it will be nevertheless very interesting to have it on the public record to see at what sums we are looking—whether they are trivial or of some substance. I should be grateful for that information.

[Lord Bew]

I, too, thank the noble Lord, Lord Shutt, for introducing this order. Like the noble Lord, Lord Smith, I have listened to his words with a degree of disappointment. It is right to say that the limits on the progress that has been made in Northern Ireland—remarkable though that progress has been—are shown in that we are still talking about these exemptions and derogations from broader UK electoral law and the transparency of such law.

I am not surprised by the words of the Minister and the proposal put today because the balance of opinion, to my surprise, in Northern Ireland over the past year has been very cautious about changing existing regulations. It has become clear for some time that the Government, if they were to respond to what they were hearing, would have to be relatively cautious in their response. But, having plagued the noble Lord, Lord Rooker, when he was at the Dispatch Box as long ago as 2007 on this matter and having, I think, plagued the noble Baroness, Lady Royall, on this matter, it would be hypocritical of me not to record a note of disappointment. I know why the Government have reached this conclusion. I know that they may have been slightly surprised by the degree of concern on the part of the political parties. But having received that, any responsible Government have to pay attention to it.

I simply make the point that Northern Ireland last year was convulsed by public scandals. One of the issues that lay in the background was that of the relationship of certain businessmen to certain political parties. In the rest of the United Kingdom, such matters would be easily sorted out and put into the public domain, but in Northern Ireland we do not know where we stand. That is a difficulty and the step that the Minister is taking is regrettable, if understandable.

The noble Lord, Lord Smith, says that he hopes that there is a two-year limit and that the provision might just lapse in two years. However, having been at this now for four years, I am not quite so secure in that assumption. I hope that he is right. Therefore, I would like to be reassured that the Minister is as clear as he appears to be that the department is looking carefully at work to deal with this by secondary legislation and, if it cannot be done by that method, that primary legislation will be introduced that at least loosens some of the provisions and gives greater openness. I have an uneasy feeling that, in the short term, that will be the best that we can do; I very much hope that I am wrong. Therefore, it is important that the Northern Ireland Office looks carefully at what can be done in certain areas, because I have a feeling that—even two years from now—we will not be looking at the simple lapsing of this legislation.