APPENDIX 1
QUESTION:
"... following the article in The Times on
21 April 2005, and especially in the period until the poll, what
was the specific advice, if any, which you [the Commission/its
Chairman] gave on the letter (rather than the "spirit")
of PPERA 2000 relating to what was acceptable as a "commercial"
loan"?
ANSWER BY
THE LEGAL
COUNSEL TO
THE ELECTORAL
COMMISSION—4 JUNE
2007
The position, based on the Commission's records
and best recollection, and subject to the provisos and comment
below, is that during the referred to period the Commission/its
Chairman did not issue any specific advice in this regard. [Underlining
added.]
However, this answer should be referred to in
the context of:
The Commission having published written guidance
for political parties on donations (attached), that includes at
para 2.5 reference to treatment of loans that are made on other
than commercial terms.
Correspondence of 28 April 2005 from the then
Director of Regulatory Services to you responding to your enquiry
of 25 April 2005 on inter alia what interest rates would
be regarded as commercial (attached—see para no 4).
The evidence on this matter given by the Commission's
Chairman and its Chief Executive to the Committee for Standards
in Public Life, extracts attached, including for completeness
of context from your evidence, with references to commercial loans
indicated in bold. I also note that the correspondence at numbered
paragraph 2 above was submitted by you to the Committee.
As you are aware, there is a current police investigation
in relation to certain party loans and appropriate care is necessary
not to prejudice such matters . . ..
November 2007
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