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Political Parties: Funding

My Lords, I thank the noble and learned Lord for repeating the Statement. Given the importance of the debate we have just had, I hope the House agrees that it was appropriate to have this Statement at this slightly late hour on a Thursday rather than break into that debate. At the outset, I would like to express our appreciation for the diligence of Sir Hayden Phillips, the clarity of his report and his recommendations on a way forward. These past few days, we have discussed the room and this Statement addresses the elephant in it. Public confidence in the funding of parties has been severely shaken by recent events. No party is whiter than white and none should throw stones, not even the Liberal Democrats or UKIP, which has not met the exacting standards expected of Caesar's wife recently. It is no time for name-calling; no time for special pleading; no time for prevarication. The Conservative Party put forward constructive proposals a year ago for a cap on donations and limits on expenditure. Since then Sir Hayden has been seeking agreement from the party of Government, which so far has been unable to agree on the matter. In reply, perhaps the noble and learned Lord will tell us whether he thinks that agreement will now be forthcoming. We on this side welcome the report. We accept its main recommendations. We want cleaner and cheaper politics and we agree with Sir Hayden that outstanding issues should be addressed swiftly and by direct talks. Do the Government accept Sir Hayden's view that we need an across-the-board cap on large donations from big business and wealthy individuals; and trade unions cannot be excluded? Does he accept that if affiliation fees are to count as individual donations then trade union members must be able to opt in to political funds, rather than them being left to opt out? Will he give an undertaking that, despite the threat by the Labour Party’s NEC that it will vigorously oppose plans for a cap on donations, the Government will consider it positively? Does the imminent retirement of the Prime Minister not present a real opportunity to achieve agreement on such a cap without pressure on the leader from elements of the Labour Party? Should he not now seize that chance as part of his legacy? Will the noble and learned Lord also accept that, if we are to have tighter caps on local spending, it must be done at a level, and in a way, ensuring that allowances, including the new £20,000 communications allowance now proposed for MPs, do not give unfair advantage to incumbent MPs, most of whom are, naturally enough, from the Labour Party? Does he agree that if we are to increase engagement with politics, as we all wish, then grass roots participation is an important part of all of this? It is surely essential that we do not centralise control at the expense of muting local enthusiasm and local political activity. I agree with the noble and learned Lord that, while there may be arguments for state funding in some forms, it cannot happen until public confidence is restored. Grafting state funding on to an unreformed system would increase, not diminish, public cynicism and alienation. Does he agree that any state funding must be introduced in a way that promotes more democratic engagement, like tax relief on small donations or matched funding for non-taxpayers as recommended by the Committee on Standards in Public Life? We note, and do not disagree with, Sir Hayden’s view that the Electoral Commission needs substantial reform and improvement if it is to carry out more effective regulation. I hope that the noble and learned Lord agrees that this must not mean major extra spending. The Electoral Commission’s activities in pushing new-fangled voting systems have not strengthened confidence in democracy. We would be better served by a body that focused on securing confidence in the existing system, rather than dreaming up new ones that have proved open to fraud and abuse. Finally, can the noble and learned Lord set out a timetable on which the Government will now pursue the direct talks with parties that Sir Hayden recommends? Our door has been open for a year. It still is.