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Political Parties (Funding and Expenditure)

I thank the Secretary of State for advance sight of his statement and of the White Paper. I think the whole House will agree that party funding reform is very much needed to restore trust in our politics, and to deal with the perception that large donations, whether from individuals or from organisations such as trade unions, can buy undue influence over policy or patronage. I entirely agree with the Secretary of State that perceptions matter hugely. That is why we produced radical reform proposals early in 2006, well before Sir Hayden's appointment. Sir Hayden, incidentally, deserves our huge thanks for the enormous work that he put in. His proposals on Electoral Commission reform are especially welcome. We took part in the discussions enthusiastically, and, as evidence of our commitment to reaching agreement, even accepted that an overall settlement could include an increase in state funding, although we neither seek that nor consider it desirable. We further accepted that there could be overall caps on spending by parties, although it is clearly how money is raised that worries the public, not how much is spent. [Interruption.] It is interesting to note that Sir Hayden's terms of reference refer only to donations. Spending by parties does not even get a mention. The Secretary of State will recollect that, in setting up the review, Tony Blair said explicitly that there would be no no-go areas and, in particular, that trade union funding should not be exempt from any donation caps. Was it not always understood that reform must be comprehensive, and that there should be no cherry-picking to serve the governing party's partisan interests—that nothing would be agreed until everything was agreed? Does the Secretary of State accept that a partisan Bill now cannot provide the basis for a long-term and sustainable settlement? Has he read the independent research by Dr. Pinto-Duschinsky, which shows that there is no arms race in party spending? Is this not a myth to give credence to a bankrupt Labour party's desire to hamstring its opponents? Will the Justice Secretary agree that the discussions came very close to overall agreement, but foundered on the key issue of whether trade union donations should be subject to donation caps on the same basis as other donations? Will he now place in the Library the minutes and the background papers to the review, which will show that it was Labour's refusal to allow further work on trade union funding that brought the talks to an end? Does he recall that he and Peter Watt—the then Labour general secretary—refused point blank even to discuss giving trade union members the right to a real choice in whether to pay the political levy? [Interruption.] Well, does the Secretary of State remember the revelation that a Lib Dem MP received a ballot paper for Labour's leadership contest, having unwittingly become a Labour party member through a trade union? Will he not acknowledge that when trade unions routinely declare that 100 per cent. of their members—and in two cases, more than 100 per cent.—are paying the political levy, the idea that these are voluntary individual donations to Labour are laughable, especially when polling shows that fewer than half of union members even vote Labour, let alone want to support it financially? Does the Secretary of State accept that his proposal to reintroduce ““triggering”” was not even part of Sir Hayden's draft agreement? Is not this change designed to make it more difficult—a caption in the White Paper makes this clear—for candidates to campaign effectively, and thus to benefit sitting Labour MPs? Does the Secretary of State not understand that it would be an atrocious abuse of power for the Government to force through restrictions on what parliamentary candidates can spend from money they have raised privately, while sitting MPs can spend ever-more taxpayers' money on promoting themselves? Last year, we came close to an overall comprehensive agreement that could genuinely have started to repair the public's trust in politics, and I say to the Justice Secretary that we can still achieve this. However, it would require Labour to accept that dependence on a small number of union bosses has to end. Sadly, it is hard to see that happening when 92 per cent. of Labour's income comes from the unions, who even now are squaring up to demand their payback in the form of a Warwick agreement mark 2. It is precisely Labour's dependence on these union bosses and the big donor culture that is preventing us from getting the reform that our politics so desperately needs.