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Public Bill Committee: 13th November 2008                

170

 

Political Parties and Elections Bill, continued

 
 

are paid by the individual from his own resources and are not reimbursed

 

to him.

 

(6)    

For the avoidance of doubt, the following shall count as qualifying expenditure—

 

(a)    

any expenses in respect of newsletters or similar publications issued by

 

or on behalf of the party with a view to giving electors in a particular

 

electoral area information about the opinions or activities of, or other

 

personal information relating to, their elected representatives or existing

 

or prospective candidates;

 

(b)    

any expenditure paid out of the House of Commons Communications

 

Allowance.’.

 


 

Cap on donations

 

David Howarth

 

Mr Alan Reid

 

NC4

 

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 £50,000.

 

(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—

 

“(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 £50,000.”.

 

(3)    

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

 


 

Local spending limits

 

David Howarth

 

Mr Alan Reid

 

NC9

 

To move the following Clause:—

 

‘(1)    

No registered political party may spend more than 0.3 per cent. of its national

 

spending limit on qualifying expenditure in any individual parliamentary

 

constituency during the regulated period.


 
 

Public Bill Committee: 13th November 2008                

171

 

Political Parties and Elections Bill, continued

 
 

(2)    

If a by-election is held in a constituency, the limit mentioned in subsection (1)

 

shall be increased by the relevant limit on election expenses for by-elections in

 

force at the time of the by-election.

 

(3)    

In this section—

 

“national spending limit” means the amount applicable to that party

 

according to subsection (1) or (2) of section [Limits on party

 

expenditure];

 

“the regulated period” means the periods applicable to that party according

 

to subsection (1) or (2) of section [Limits on party expenditure];

 

“qualifying expenditure” has the same meaning as in section [Limits on

 

party expenditure], except that expenditure on the remuneration or

 

allowances of staff shall count as qualifying expenditure to the extent that

 

the staff are engaged in the activities described in section [Limits on party

 

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:—


 
 

Public Bill Committee: 13th November 2008                

172

 

Political Parties and Elections Bill, continued

 
 

‘(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];

 

(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.’.

 



 
 

Public Bill Committee: 13th November 2008                

173

 

Political Parties and Elections Bill, continued

 
 

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—

 

“(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

 

2          

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.


 
 

Public Bill Committee: 13th November 2008                

174

 

Political Parties and Elections Bill, continued

 
 

3          

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].

 

4          

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.

 

5          

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.

 

6          

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 Michael Wills

 

127

 

Schedule  5,  page  42,  line  13,  at end insert—

  

‘In section 63(3)(b), the words “sheriff clerk,”.’.

 
 

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.’.

 


 

Mr Michael Wills

 

128

 

Clause  19,  page  12,  line  16,  at end insert—


 
 

Public Bill Committee: 13th November 2008                

175

 

Political Parties and Elections Bill, continued

 
 

‘( )    

section [Filling vacant European Parliament seats in Northern

 

Ireland];’.

 

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],’.

 

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

 

Nick Ainger

 

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.


 
 

Public Bill Committee: 13th November 2008                

176

 

Political Parties and Elections Bill, continued

 
 

(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.’.

 


 

Removal of criminal sanctions from specified offences

 

Mr Fabian Hamilton

 

Nick Ainger

 

Martin Linton

 

 

NC16

 

To move the following Clause:—

 

‘(1)    

The 2000 Act is amended as follows.

 

(2)    

In section 47(1), for “is guilty of an offence” there is substituted “shall be liable

 

to a fixed monetary penalty under Schedule 19B”.

 

(3)    

In section 65(3), for “commits an offence” there is substituted “shall be liable to

 

a fixed monetary penalty under Schedule 19B”.

 

(4)    

In paragraph 12(1) of Schedule 7, for “is guilty of an offence” there is substituted

 

“shall be liable to a fixed monetary penalty under Schedule 19B”.

 

(5)    

A fixed monetary penalty imposed in accordance with subsections (2), (3) and (4)

 

may not exceed £1,000.

 

(6)    

In Schedule 20 (penalties) the following entries in the table, and the

 

corresponding entries in column 2, are omitted—

 

(a)    

Section 47(1)(b) (failure to deliver proper statement of accounts),

 

(b)    

Section 65(3) (failure to deliver donation reports to Commission within

 

time limits), and

 

(c)    

paragraph 12(1) of Schedule 7 (failure to deliver donation report to

 

Commission within time limit).’.

 


 

Disclosure of election candidate’s addresses

 

Mr Jonathan Djanogly

 

NC20

 

To move the following Clause:—

 

‘(1)    

In the 1983 Act, Schedule 1 (parliamentary elections rules) is amended as

 

follows.

 

(2)    

In paragraph 6, for sub-paragraph (2)(b) there is substituted—


 
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