Public Bill Committee: 6th November 2008

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Political Parties and Elections Bill, continued

expenditure] (4)(b), (c), (d) or (e) in respect of the relevant

constituency.’.

Donations by companies controlled by impermissible donors

David Howarth

Mr Alan Reid

NC10

To move the following Clause:—

‘(1)	A donation from a company controlled by an impermissible donor shall itself

count as not permitted.

(2)	A company shall count as controlled by an impermissible donor when—

(a)	an impermissible donor, or any combination of impermissible donors,

owns 75 per cent. or more of the voting shares in the company; or

(b)	an impermissible donor acts as a shadow director of the company; or

(c)	a majority of the board of directors of the company are impermissible

donors.

(3)	“impermissible donor” means either—

(a)	a donor who is not a permitted donor under the 2000 Act; or

(b)	a company controlled by an impermissible donor.

(4)	“shadow director” has the same meaning as it has in section 251 of the Companies

Act 2006.’.

Treatment of contributions from trade union political funds

David Howarth

Mr Alan Reid

NC11

To move the following Clause:—

‘(1)	The limit on donations established by section [Cap on donations] shall apply to

all expenditure out of trade union political funds unless all the conditions of this

section have been fulfilled with regard to the expenditure in question.

(2)	The conditions are that—

(a)	the expenditure consists entirely of money contributed directly to the

funds of a political party;

(b)	the expenditure consists entirely of an amount paid to a political party on

the basis of multiplying the number of members who are contributors to

the union’s political fund, or a proportion of those members (not

exceeding 100 per cent for any single party or any combination of

parties), by a certain sum;

(c)	the sum referred to in paragraph (b) is less than the limit set by section

[Cap on donations];

Public Bill Committee: 6th November 2008

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Political Parties and Elections Bill, continued

(d)	the consent has been obtained either of all the members who are

contributors to the fund, or, where the basis of the calulation of the sum

expended is a proportion of those members, of at least the relevant

proportion of the members, for the expenditure concerned.

(3)	A member of a union who contributes to the political fund shall be deemed to

have consented for the purposes of subsection (2) if all of the following

conditions have been satisfied—

(a)	the member was afforded during the 12 months preceding the relevant

expenditure a reasonable opportunity to be exempted from contributing

to the political fund of the union;

(b)	the union has, during the 12 months preceding the relevant expenditure,

made reasonable efforts to acquaint all members who contribute to the

political fund with—

(i)	the nature of a political fund;

(ii)	the nature of expenditure made by the union out of the political

fund in the previous five years, including the identity of any

political parties to which payments have been made out of the

political fund;

(iii)

the right of members to be exempt from paying contributions to

the fund; and

(iv)	the nature of any expenditure out of the fund that the union

intends or reasonably expects to make in the following 12

months.

(4)	The Electoral Commission may issue guidelines and model communications

about—

(a)	the requirement mentioned in subsection (3)(a); and

(b)	the conditions mentioned in subsection (3)(b).

(5)	Compliance with guidelines or use of model communications issued under

subsection (4) shall be deemed to be compliant with the relevant aspects of this

section.

(6)	No more than one payment under subsection (1) may be made in any one calendar

year, but the payment may be calculated on an annual basis and paid in

instalments.’.

Cap on donations (No.2)

David Howarth

Mr Alan Reid

NC12

To move the following Clause:—

‘(1)	In section 54 of the 2000 Act, after subsection (1) there is inserted—

“(1A)

A donation received by a registered party from a permissible donor must

not be accepted by the party in so far as the amount of that donation and

of any other donations accepted by the party from that donor during the

previous 12 months exceeds £10,000.

(1B)	Subsection (1A) does not apply to donations to which subsections (1) and

(2) of section 55 apply.”.

(2)	In section 56 of the 2000 Act, after subsection (2) there is inserted—

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Political Parties and Elections Bill, continued

“(2A)

If a registered party receives a donation which it is prohibited from

accepting by virtue of section 54(1A), subsection (2) applies to that

donation only in so far as the amount of that donation and of any other

donations accepted by the party from that donor during the previous 12

months exceeds £10,000.”.

(3)	In subsection 58(1)(a) of the 2000 Act, after “(b)”, there is inserted “or (1A)”’.

Spending limits: transitional arrangements

David Howarth

Mr Alan Reid

NC13

To move the following Clause:—

‘Schedule [Spending limits: transitional arrangements] (which makes provision

about transitional arrangements for spending limits) has effect.’.

New Schedule relating to political donations and expenditure

David Howarth

Mr Alan Reid

NS1

To move the following Schedule:—

‘Spending limits: transitional arrangements

11	Notwithstanding sections [Limits on party expenditure] and [Local spending

limits], the Electoral Commission may set national and local spending limits

for the period between the time this Act comes into force and the next general

election.

12	In exercising its power under paragraph 1, the Electoral Commission must

have regard to—

(a)	the number of months since the last general election and the number

of months remaining before a general election must be held; and

(b)	the spending limits established in sections [Limits on party

expenditure] and [Local spending limits].

13	The Electoral Commission may set different limits for parties that fought 100

seats or more at the last general election and those that fought fewer than 100

seats at the last general election, but otherwise may not set different limits for

different parties.

14	In setting different limits for different parties under paragraph 3, the Electoral

Commission may take into account the number of seats fought at the last

general election by a party that fought fewer than 100 seats.

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Political Parties and Elections Bill, continued

15	In exercising its power under paragraph 1, the Electoral Commission must use

the definitions of qualifying expenditure laid out in sections [Limits on party

expenditure] and [Local spending limits].’.

Mr Jonathan Djanogly

Mrs Eleanor Laing

39

Schedule  5,  page  42,  line  16,  column  2,  at beginning insert ‘Section 13’.

David Howarth

Mr Alan Reid

19

Clause  16,  page  11,  line  22,  at beginning insert—

‘(1)	The provisions of sections [Limits on party expenditure] and [Local spending

limits] shall apply to the period before the next general election subject to

Schedule [Spending limits: transitional arrangements].

(2)	The Electoral Commission is under a duty to announce national and local

spending limits under Schedule [Spending limits: transitional arrangements] for

the period before the next general election before sections [Limits on party

expenditure] and [Local spending limits] come into force.’.

David Howarth

Mr Alan Reid

20

Clause  19,  page  12,  line  20,  at end insert ‘and

(g)	section [Spending limits: transitional arrangements] and Schedule

[Spending limits: transitional arrangements],’.

David Howarth

Mr Alan Reid

23

Clause  19,  page  12,  line  20,  at end insert ‘and

(g)	section [Cap on donations],’.

David Howarth

Mr Alan Reid

24

Clause  19,  page  12,  line  20,  at end insert ‘and

(g)	section [Donations by companies controlled by impermissible donors],’.

Public Bill Committee: 6th November 2008

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Political Parties and Elections Bill, continued

David Howarth

Mr Alan Reid

21

Clause  19,  page  12,  line  21,  at end insert—

‘(5)	Subsection (1) does not apply to section [Local spending limits], which comes

into force 14 days after the day on which this Act is passed.’.

David Howarth

Mr Alan Reid

22

Clause  19,  page  12,  line  21,  at end insert—

‘(5)	Subsection (1) does not apply to section [Limits on party expenditure], which

comes into force 14 days after the day on which this Act is passed.’.

Remaining New Clauses

Review of the Act

Mr Fabian Hamilton

Mr Denis MacShane

NC5

To move the following Clause:—

‘(1)	The Secretary of State shall appoint a committee to conduct a review of this Act.

(2)	He must seek to secure that at any time there are not fewer than seven members

of the committee.

(3)	A person may be a member of the committee only if he is a member of the Privy

Council.

(4)	The committee shall complete the review and send a report to the Secretary of

State not later than the end of two years beginning with the day on which this Act

is passed.

(5)	The Secretary of State shall lay a copy of the report before Parliament as soon as

is reasonably practicable.

(6)	The Secretary of State may make payments to persons appointed as members of

the committee.’.

Order of the House [20th OCTOBER 2008] as amended by order of

27th october

That the following provisions shall apply to the Political Parties and Elections Bill:

Committal

1.	The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2.	Proceedings in the Public Bill Committee shall (so far as not previously

concluded) be brought to a conclusion on Thursday 20th November 2008.

3.	The Public Bill Committee shall have leave to sit twice on the first day on

Public Bill Committee: 6th November 2008

69

Political Parties and Elections Bill, continued

which it meets.

Consideration and Third Reading

4.	Proceedings on consideration shall (so far as not previously concluded) be

brought to a conclusion one hour before the moment of interruption on the

day on which those proceedings are commenced.

5.	Proceedings on Third Reading shall (so far as not previously concluded) be

brought to a conclusion at the moment of interruption on that day.

6.	Standing Order No. 83B (Programming committees) shall not apply to

proceedings on consideration and Third Reading.

Other proceedings

7.	Any other proceedings on the Bill (including any proceedings on

consideration of Lords Amendments or on any further messages from the

Lords) may be programmed.

Order of the Committee [4th November 2008]

That—

(1)	the Committee shall (in addition to its first meeting at 10.00 a.m. on Tuesday

4th November) meet—

(a)	at 9.00 a.m. and 1.00 p.m. on Thursday 6th November;

(b)	at 10.30 a.m. and 4.30 p.m. on Tuesday 11th November;

(c)	at 9.00 a.m. and 1.00 p.m. on Thursday 13th November;

(d)	at 10.30 a.m. and 4.30 p.m. on Tuesday 18th November;

(e)	at 9.00 a.m. and 1.00 p.m. on Thursday 20th November;

(2)	the Committee shall hear evidence in accordance with the following Table;

	Date	Time	Witness
	Tuesday 4th	Until no later than	Ministry of Justice
	November	12.00 p.m.
	Tuesday 4th	Until no later than	Sir Hayden Phillips;
	November	1.00 p.m.	Sir Christopher Kelly
	Thursday 6th	Until no later than	Electoral Commission
	November	10.25 a.m.
	Thursday 6th	Until no later than	Professor Keith
	November	2.00 p.m.	Ewing, King’s College
			London;
			Professor Justin
			Fisher, Brunel
			University;
			Dr Michael Pinto-
			Duschinsky
	Thursday 6th	Until no later than	Representatives of the
	November	3.00 p.m.	Labour Party, the
			Conservative Party,
			and the Liberal
			Democrats

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Political Parties and Elections Bill, continued

(3)	the proceedings shall be taken in the following order: Clauses 4 to 7; new

Clauses relating to Electoral Commisioners etc; new Schedules relating to

Electoral Commissioners etc; Clauses 1 and 2; Schedule 1; Clause 3;

Schedule 2; new Clauses relating to functions of Electoral Commission; new

Schedules relating to functions of Electoral Commission; Clauses 12 and 13;

new Clauses relating to elections and electoral registration; new Schedules

relating to elections and electoral registration; Clause 8; Schedule 3; Clauses

9 to 11; new Clauses relating to political donations and expenditure; new

Schedules relating to political donations and expenditure; Clauses 14 and 15;

Schedules 4 and 5; Clauses 16 to 20; remaining new Clauses; remaining new

Schedules; remaining proceedings on the Bill;

(4)	the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 4.00 p.m. on Thursday 20th November.

NOTICES WITHDRAWN

The following Notices have been withdrawn:

Mr Jonathan Djanogly

Mrs Eleanor Laing

80

Clause  1,  page  1,  line  10,  leave out ‘may’ and insert ‘shall’.

---

Revised 6 November 2008