My Lords, Amendment 170N would insert a new clause that would remove the requirement for recognised third parties to provide a spending return after the election if they had not incurred controlled expenditure above the registration threshold. Instead, a recognised third party would be required to submit a declaration that they had not spent in excess of the registration threshold.
Amendment 173, spoken to by my noble friend Lord Hodgson, would amend Clause 32 so that a recognised third party would not have to submit a nil report where it had not received a reportable or substantial donation. Amendment 174 would amend Clause 32 so that a recognised third party would be able to appoint a responsible person who had been a responsible person for another recognised third party.
I will give some background before addressing specific amendments. To improve transparency and to ensure that people can see who is funding a third party before the poll takes place, third parties will be required to report any large donations in advance of the poll. This will align the reporting requirements of third parties more closely with those of political parties, and will take two forms.
First, recognised third parties will be required to provide quarterly reports of donations for each reporting period that falls within the regulated period for a UK parliamentary general election. Secondly, between the dissolution of Parliament and polling day, recognised third parties will be required to provide weekly reports of any large donations.
I am not sure if I heard correctly whether the noble and right reverend Lord, Lord Harries, suggested that the quarterly and weekly reports also applied to spending. To clarify, the quarterly and weekly reports prior to the election apply only to donations—of more than £7,500—and the spending return will continue to be a requirement after the election.
Both the quarterly and weekly donation reports would be submitted to the Electoral Commission, which would publish the information. The quarterly reports must be accompanied by a signed declaration from the responsible person of the recognised third party, stating that all reportable donations accepted were from permissible donors. The Bill introduces measures that are necessary to achieve this increased transparency. The Bill proposes that third parties provide information about large donations in advance of the election, in quarterly and weekly donation reports.
At present, recognised third parties have to provide details of their campaign income and expenditure to the Electoral Commission after a UK parliamentary general election, and after the poll for certain other elections. To improve transparency by providing a clearer understanding of the finance of those involved in elections and to align the reporting requirements of third parties more closely with those of political parties, a statement of accounts would form part of the return third parties already provide to the Electoral Commission.
To ensure that this additional obligation is proportionate, individuals are excluded from this requirement. The Government believe that not to exclude individuals would result in an unwarranted intrusion into their personal financial matters, although they will still be required to provide details of their campaign income and expenditure, as is currently the case. Third parties, such as companies, charities and trade unions, which are required to prepare a statement of accounts under another legislative framework would be able to submit these accounts as part of their return to the Electoral Commission. I hope that this is an example of proportionality.
Turning to the amendments, I hope that noble Lords support the principle of providing information on reportable donations during the election period. However, the Government acknowledge that the correct balance has to be struck between increased transparency and overly burdensome requirements. With this in mind, the suggestions of the Electoral Commission in relation to nil reporting have provided a very useful starting point. The Government want to consider these matters very carefully and to revisit them on Report, to ensure that adequate and proportionate reporting requirements are included in the Bill.
Amendment 174, spoken to by my noble friend Lord Hodgson, concerns the role of the responsible person. When a recognised third party seeks registration with the Electoral Commission, they must nominate a responsible person who ensures compliance with the provisions of the Political Parties, Elections and Referendums Act 2000.
It is for the recognised third party or coalition to nominate a responsible person who they feel is best placed to ensure compliance with legislation. That could be a person who is already a responsible person
for another third party. There are therefore no restrictions placed on who the recognised third party can nominate as a responsible person, except where an individual registers as a third party, where they will automatically become the responsible person.
In relation to amendment 170N, the Electoral Commission made a similar suggestion in its June 2013 regulatory review. The Government see merit in the suggestion, which underpins our aim that smaller bodies should not be subject to overly burdensome reporting requirements. As a result, the Government will want to consider this issue carefully and revisit it on Report.
We have heard the—understandable—strictures from my noble friend Lord Deben. In that spirit, I ask the noble and right reverend Lord, Lord Harries, to withdraw his amendment.