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Lord Bassam of Brighton moved Amendment No. 130D:
- Page 27, line 28, leave out ("the party or a person acting on its behalf)") and insert ("or on behalf of the party)").
Lord Mackay of Ardbrecknish moved Amendment No. 131:
- Page 27, line 35, leave out paragraph (f).
On Question, amendment agreed to.
Lord Bassam of Brighton moved Amendments Nos. 131A to 132:
- Page 27, line 36, leave out subsection (3) and insert--
On Question, amendments agreed to.
Clause 46, as amended, agreed to.
Lord Bassam of Brighton moved Amendment No. 132A:
("(3) Where--
(a) any money or other property is transferred to a registered party pursuant to any transaction or arrangement involving the provision by or on behalf of the party of any property, services or facilities or other consideration of monetary value, and
(b) the total value in monetary terms of the consideration so provided by or on behalf of the party is less than the value of the money or (as the case may be) the market value of the property transferred,
the transfer of the money or property shall (subject to subsection (3B)) constitute a gift to the party for the purposes of subsection (2)(a).
(3A) In determining--
(a) for the purposes of subsection (2)(d), whether any money lent to a registered party is so lent otherwise than on commercial terms, or
(b) for the purposes of subsection (2)(e), whether any property, services or facilities provided for the use or benefit of a registered party is or are so provided otherwise than on such terms,
regard shall be had to the total value in monetary terms of the consideration provided by or on behalf of the party in respect of the loan or the provision of the property, services or facilities.
(3B) Where (apart from this subsection) anything would be a donation both by virtue of subsection (2)(aa) and by virtue of any other provision of this section, subsection (2)(aa) (together with section (Sponsorship)) shall apply in relation to it to the exclusion of the other provision of this section.").
Page 27, line 40, after ("member") insert (", trustee").
Page 28, line 1, leave out subsection (5) and insert--
("( ) Except so far as a contrary intention appears, references to a registered party in the context of--
(a) the making of donations to, or the receipt or acceptance of donations by, a registered party, or
(b) any provision having effect for or in connection with determining what constitutes a donation to such a party,
shall, in the case of a party with accounting units, be construed as references to the central organisation of the party or any of its accounting units.").
Page 28, line 14, at end insert--
("( ) Nothing in this Part applies in relation to donations received by a minor party.").
After Clause 46, insert the following new clause--
(".--(1) For the purposes of this Part sponsorship is provided in relation to a registered party if--
(a) any money or other property is transferred to the party or to any person for the benefit of the party, and
(b) the purpose (or one of the purposes) of the transfer is (or must, having regard to all the circumstances, reasonably be assumed to be)--
(i) to help the party with meeting, or to meet, to any extent any defined expenses incurred or to be incurred by or on behalf of the party, or
(ii) to secure that to any extent any such expenses are not so incurred.
(2) In subsection (1) "defined expenses" means expenses in connection with--
(a) any conference, meeting or other event organised by or on behalf of the party;
(b) the preparation, production or dissemination of any publication by or on behalf of the party; or
(c) any study or research organised by or on behalf of the party.
(3) The following do not, however, constitute sponsorship by virtue of subsection (1)--
(a) the making of any payment in respect of--
(i) any charge for admission to any conference, meeting or other event, or
(ii) the purchase price of, or any other charge for access to, any publication;
(b) the making of any payment in respect of the inclusion of an advertisement in any publication where the payment is made at the commercial rate payable for the inclusion of such an advertisement in any such publication;
and subsection (1) also has effect subject to section 47(3).
(4) The Secretary of State may by order made on the recommendation of the Commission amend subsection (2) or (3).
(5) In this section "publication" means a publication made available in whatever form and by whatever means (whether or not to the public at large or any section of the public).").
On Question, amendment agreed to.
Clause 47 [Payments, services etc. not to be regarded as donations]:
Lord Bassam of Brighton moved Amendment No. 132B:
On Question, amendment agreed to.
[Amendment No. 133 not moved.]
Lord Bassam of Brighton moved Amendments Nos. 133A and 133B:
On Question, amendments agreed to.
Clause 47, as amended, agreed to.
Clause 48 [Value of donations]:
Lord Bassam of Brighton moved Amendments Nos. 133C to 133E:
On Question, amendments agreed to.
Lord Mackay of Ardbrecknish moved Amendment No. 134:
Lord Bassam of Brighton moved Amendments Nos. 134A and 134B:
Clause 48, as amended, agreed to.
Clause 49 [Permissible donors]:
[Amendment No. 134C not moved.]
[Amendment No. 135 had been withdrawn from the Marshalled List.]
Lord Norton of Louth moved Amendment No. 135A:
The noble Lord said: In moving Amendment No. 135, I shall speak also to my Amendments Nos. 140A and 146. When I moved an amendment to Clause 25 late on Tuesday evening I said that it was not the most crucial we would be debating. I believe that this amendment falls into the category of a crucial amendment because it challenges one of the core provisions of the Bill.
The Bill embodies the recommendations of the Neill committee which recommended that donations from overseas donors should be prohibited. The Bill introduces extensive regulation in order to give effect to that recommendation. In order to meet the exceptional circumstances of Northern Ireland, it embodies a notable, and to some people unpalatable, inequity: certain parties of Northern Ireland will benefit from the provisions of the Bill in a way that other parties will not.
The more amendments the Government introduce to cover the exception of Northern Ireland--they have introduced a large number--the more complex and messy the Bill becomes. I believe that all this could be avoided and that my amendment provides a way out.
The Government believe that regulation is necessary but not sufficient in order to ensure that political parties receive donations from what may be termed "legitimate sources". The sufficient condition is that of transparency. I want to argue that extensive regulation of the kind embodied in the Bill is not necessary. I believe that transparency is the key. I believe that transparency provides both the necessary and sufficient conditions to police the giving of money to political parties. If one ensures that there is openness in terms of money flowing into party coffers, adequate non-statutory policing will follow.
I believe that the report of the Neill committee addressed a problem which was already being dealt with by other means. The political parties already have the message as to the need to regulate the acceptance of donations. If one ensures that there is transparency in the giving of donations, effective limitations will follow. The policing will be done not by the courts but by the media and the parties themselves. It is unlikely that a party will risk the public censure which will flow from headlines claiming that it has received money from a disreputable source. My amendment removes the requirement that only an individual registered on an electoral register is a permissible donor. Under my amendment, any individual qualifies, whether living in the UK or overseas.
I appreciate that at first glance it may seem to be an amendment which goes too far. However, when one thinks of the anomalies created by the Bill, it looks increasingly attractive.
The Bill introduces a major anomaly in respect of Northern Ireland. My amendment ensures equity. As the Government have acknowledged, the case for the provisions that govern Northern Ireland has nothing to do with the principle but everything to do with enforceability. I believe that the more amendments they introduce to deal with this exceptional case, the more attractive my amendment becomes.
Inequity in respect of Northern Ireland is not the only problem inherent in the Bill. The effect of the Bill is to equate a permissible donor with an acceptable donor. I do not believe that, under the provisions of the Bill, that equation is sustainable. Under the legislation the parties are perfectly entitled to accept donations from devious characters as long as they are on the electoral register. The provisions are not watertight. The Bill does not prevent dubious individuals who are UK citizens from giving money; nor will it necessarily be effective in preventing non-UK or non-EU citizens from giving money. There are various ways in which those who wish to get round the provisions can do so. Citizens of overseas countries resident in the UK can acquire economic citizenship of a Commonwealth country and thus be eligible to make donations.
As long as a permissible donor is equated with an acceptable donor there is a danger that the media will not take too much of an interest in party donations. The parties may be rigorous in refusing money from those who are not permissible donors but have few qualms about accepting money from those who are permissible donors. I believe that under my proposal the parties would be more careful about from whom they took money, conscious that they would be subject to public condemnation if they took money from dubious sources: the media and their political opponents would see to that.
The Bill creates artificial barriers between people who are resident in the United Kingdom. Why should a citizen of Mozambique resident in the UK be eligible to give money to a political party when a citizen of Angola also living here is not? Why should a Swedish citizen living in London be eligible to give money to a political party when a Norwegian citizen similarly resident is not?
I understand the demarcation drawn by the Bill but I am not convinced that it provides a justifiable dividing line between the acceptable and the unacceptable. In order to ensure compliance with the provisions on donations, the Bill introduces extensive regulation. This regulation adds to that provided by control of election finances. The effect of it is to impose a massive and, in many cases, I suspect, intolerable burden on party treasurers. The more complex the Bill becomes the greater the burden that they must shoulder.
I realise that this amendment is radical and challenges a fundamental component of the Bill. The Minister may challenge it on the ground that it changes the whole nature of the legislation. However, given all the government amendments to the Bill, I do not believe that on that score Ministers are in a position to complain. I also realise that I may be accused of trying to let the parties off the hook, but I do not believe that that is so. For the reasons I have given, the burden will be upon them to put their financial arrangements in order. The key to effective regulation is transparency. I have no objection to lowering the level at which donations must be made public. Greater openness rather than extensive regulation is the answer. I believe
I have little doubt that the Minister's response will be negative, but the case I make gains greater strength the more the Committee considers all the amendments to the Bill. I invite the Minister to reflect on what I have said, and I beg to move.
The Deputy Chairman of Committees (Lord Brougham and Vaux): I must advise the Committee that if Amendment No. 135A is agreed to I cannot call Amendment No. 136.
Page 28, line 28, at end insert--
("( ) the provision of assistance by a person appointed under section 9 of the Local Government and Housing Act 1989;").
Page 28, line 35, leave out from ("which") to ("and") in line 37 and insert ("(in accordance with any enactment) falls to be included in a return as to election expenses in respect of a candidate or candidates at a particular election;").
Page 28, line 39, at end insert--
("(3) Nothing in section 46 or (Sponsorship) shall have the result that a payment made in respect of the hire of a stand at a party conference organised by or on behalf of a registered party is to constitute a donation to the party for the purposes of this Part if or to the extent that the payment does not exceed such of the maximum rates which the Commission determine to be reasonable for the hire of stands at party conferences as is applicable to the hire of the stand in question.").
Page 29, line 1, at beginning insert ("the total value in monetary terms of").
Page 29, line 1, at end insert--
("(2A) The value of any donation falling within section 46(2)(aa) shall be taken to be the value of the money, or (as the case may be) the market value of the property, transferred as mentioned in section (Sponsorship)(1); and accordingly any value in monetary terms of any benefit conferred on the person providing the sponsorship in question shall be disregarded.").
Page 29, line 4, leave out paragraphs (a) and (b) and insert--
("(a) the total value in monetary terms of the consideration that would have had to be provided by or on behalf of the party in respect of the loan or the provision of the property, services or facilities if--
(i) the loan had been made, or
(ii) the property, services or facilities had been provided,
on commercial terms, and
(b) the total value in monetary terms of the consideration (if any) actually so provided by or on behalf of the party.").
Page 29, line 8, leave out subsection (4).
On Question, amendment agreed to.
Page 29, line 13, leave out ("or (4)").
Page 29, line 19, leave out ("or (4)").
On Question, amendments agreed to.
Page 29, line 32, leave out ("registered in an electoral register") and insert ("wheresoever resident").
5.30 p.m.
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