Electoral Administration Bill

moved Amendment No. 62:"After Clause 60, insert the following new clause—" ““REGULATION OF LOANS: POWER TO MAKE PROVISION FOR CANDIDATES, THIRD PARTIES AND REFERENDUMS (1)   The Secretary of State may by order make in relation to a relevant matter such provision as he thinks appropriate which corresponds to or is similar to any provision of Part 4A of or Schedule 7A to the 2000 Act (the relevant transaction provisions). (2)   A relevant matter is a loan, credit facility or any form of security (whether real or personal) which benefits— (a)   a candidate at an election; (b)   a recognised third party; (c)   a permitted participant in a referendum. (3)   An order under this section may— (a)   amend or repeal any enactment (whenever passed); (b)   create an offence corresponding or similar to any offence created by the relevant transaction provisions; (c)   confer power on the Secretary of State to make provision by order corresponding to any such power in the relevant transaction provisions; (d)   make different provision for different purposes; (e)   make such supplemental, incidental, consequential, transitional or savings provision as the Secretary of State thinks necessary or expedient in connection with the order. (4)   An order under this section which confers power to make an order by virtue of subsection (3)(c) must require the order— (a)   to be made by statutory instrument; (b)   not to be made unless a draft of the instrument containing the order has been laid before and approved by resolution of each House of Parliament. (5)   Subsection (4) does not apply to any power to make provision determining a rate of interest. (6)   The power to make an order under this section is exercisable by statutory instrument. (7)   No such order may be made unless a draft of the instrument containing the order has been laid before and approved by resolution of each House of Parliament. (8)   In this section— ““candidate”” has the same meaning as in Part 2 of the 1983 Act; ““credit facility”” must be construed in accordance with section 71F(11) of the 2000 Act; ““election”” has the same meaning as in section 202 of the 1983 Act; ““permitted participant”” has the same meaning as in Part 7 of the 2000 Act; ““recognised third party”” has the same meaning as in Part 6 of that Act. (9)   An order under this section must not make provision which is within the legislative competence of the Scottish Parliament. (10)   Subsection (9) does not apply to provision made by virtue of subsection (3)(e).”” The noble Baroness said: My Lords, this amendment provides an enabling power for the Secretary of State to roll out the new provisions in relation to regulated transactions in three further, very specific contexts where there are already existing parallel controls for donations. Those are recognised third parties at national election campaigns; permitted participants at national and regional referendums; and candidates in election campaigns. The intention is to use the order-making power to replicate as far as possible the regulated transactions regime, which is already in the Bill for political parties and extended to individuals, in each of these three cases making appropriate adjustments to reflect the different contexts. Anything that a political party does is inherently political, and as a consequence it is appropriate to regulate a party’s donations and loans at all times. However, recognised third parties, candidates and permitted participants are only regulated when acting in a political capacity. For example, donations to third parties and candidates are only regulated when they are for the purpose of meeting political expenditure related to the election in question. The regulated transactions regime will need to draw a similar distinction. Another difference arises from the existing position of candidates. The reporting threshold for donations to third parties and permitted participants is currently £5,000, but for candidates it is only £50. There is no provision for the aggregation of donations with other donations of less than £50. Accordingly, we do not think that it would be appropriate or sensible to provide for the aggregation of loans and donations where such small sums are involved. Those are matters of detail. The power is subject to the affirmative resolution procedure, and I look forward to bringing these issues forward to your Lordships’ House for discussion. I hope that noble Lords will accept the amendment. I beg to move. On Question, amendment agreed to.