Electoral Administration Bill

My Lords, I am grateful to the noble Lord, Lord Goodhart. I recognise that he described my noble and learned friend’s response as inadequate, and so I am not entirely sure that I shall be able to satisfy him for I fear that I tread a similar path to my noble and learned friend. We are all agreed that the purpose of the new regime is to bring openness and transparency to the finances of political parties, to put on public record where the money has come from and to deal with the issue of loans. We have been much heartened by the support that we have received from all political parties in seeking to achieve that. My noble and learned friend said to the noble Lord, Lord Goodhart, that the consequence of existing loans being declared illegal would be disproportionate. Although I accept that the noble Lord said that you could perhaps have a regime that stretched as far as 12 months for the repayment of such loans, nevertheless the terms and conditions could be detrimental to the lender or to the political party. We are not in the business of trying to put political parties in deep financial difficulties. The noble Lord rightly said that political parties were mindful of wanting the new regime to come into place—I believe that they will act accordingly from now on—but where a loan was entered into on a permissible basis before the legislation came into force and where it is transparent and open that the loan exists, we have done enough; it would be wrong to then say that, because we are introducing the new regime, from this moment onwards retrospectivity should apply to having to repay loans. I have no idea what the financial consequences would be for any political party in those circumstances—including my own—should there be any. We have done enough within the loans regime that we have got—I know that there are more amendments to come—to make clear and transparent what we are seeking to do and what the current position is and to make sure that the future is safeguarded. I see no reason to pursue the matter to the point that the noble Lord has suggested. On that basis, I have to resist the amendment.