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Political Parties and Elections Bill

Government Amendments 98, 105, 139 and 140 introduce new requirements for members associations. Government Amendments 139 and 140 are consequential. Members associations are a formal category of regulated recipient, or donee, under the 2000 Act. This means that they are required to report donations and loans to the commission in a similar way to political parties. These associations are diverse and can have fairly loose structures—the legislation does not require specific posts or organisational arrangements. Indeed, the definition of what is and is not a members association is pretty broad. It is defined as an organisation "composed wholly or mainly of members of a political party" that is not a party or party accounting unit. This loose arrangement is desirable as it allows a multiplicity of bodies to organise and flourish. A quick glance at the Electoral Commission’s registers indicates that organisations as diverse as the Conservative Christian Fellowship, Progress and the Liberal Democrat Parliamentary Party have all reported donations in their capacity as members associations. This diversity is a feature of our democratic system. Members associations should be encouraged, and nothing we propose is intended to hamper their existence or radically alter what is required of them. However, it has come to our attention that, in the event of a members association failing to comply with the reporting requirements which attach to it, it might not always be possible to ascertain who is responsible for that failure. After all, the legislation in its current form does not require the members association positively to identify to the commission who is responsible for dealing with its donations. Moreover, it is not possible to sanction the association itself in the event of a failure not resulting from the actions of an individual. This situation cannot be acceptable, given the importance of a robust and enforceable regulatory system. As such, these amendments propose measures to clarify the liability of members associations in the event of failures to comply with the reporting requirements applying to them. The amendments provide that, when a members association does not already have a treasurer and is in receipt of a donation, or enters in to a loan which is required to be reported to the commission—that is, one above £7,500, or an impermissible donation above £500—the association is required to appoint a responsible person within the reporting period of 30 days. A notice appointing the responsible person must be submitted to the Electoral Commission within the 30-day time period and include relevant details such as name and address of the association and the individual’s name and address. The notice must be signed by the responsible person and on behalf of the members association; it lasts for one year and can be renewed, modified or terminated during the course of that year, as set out in the clause. In the event of a failure adequately to comply with the reporting requirements, that responsible person will be liable. When a members association fails to appoint a responsible person, in these circumstances that will be an offence. In contrast with the current liability provisions in the 2000 Act, these amendments provide that the members association itself can be sanctioned for both a failure adequately to comply with the reporting requirements, and as a new offence, the members association would be liable for a failure to appoint a members association where one is required. This is a sensible and proportionate measure which clarifies liability without compromising the status of members associations more widely. I am pleased that the Electoral Commission has recognised that these amendments are desirable and fully supports them. Its recent briefing note on the Bill said: ""The new requirements are … targeted at circumstances where a breach of the law is most likely to affect confidence in the transparency and integrity of political finance. They will enable the Commission both to give members associations a clear account of what they need to do to comply with the law, and to deal appropriately with cases of non-compliance"." I beg to move.