Political Contributions (Hansard, 21 April 1993)

§ 1. Mr. Winnick
To ask the President of the Board of Trade if he will bring forward legislation to compel companies to ballot shareholders and employees before contributions are paid to a political party.

§ The Parliamentary Under-Secretary of State for Corporate Affairs (Mr. Neil Hamilton)
No. The present law requires sufficient disclosure. Shareholders can raise questions about political contributions at the annual general meeting if they are dissatisfied.

§ Mr. Winnick
Why no change? The Government demand that the trade unions ballot their members every 10 years as to whether political funds should be retained. Why not have the same for companies? Is it because it is the companies that denote money to the Tory party? Is there no limit to the sheer hypocrisy of the Government in relation to political funds? They should be thoroughly ashamed of themselves.

§ Mr. Hamilton
Our system of company law is very wide ranging and imposes extensive obligations on companies. If trade unions had to comply with such extensive obligations, they would not thank the hon. Gentleman for what he has said. It is very easy for a shareholder who is dissatisfied to sell his shares if he does not like his company's policy, but it is not quite as easy to change trade unions.

§ Mr. Matthew Banks
Does my hon. Friend agree that those who make decisions on behalf of companies to make donations are rightly subject to the accountability of shareholders? Does he further agree that those who make decisions do so in the best interests of their shareholders, their company and the prosperity of the nation as a whole?

§ Mr. Hamilton
I agree with my hon. Friend. If there had not been such abuses in the trade union movement, which were always supported by the hon. Gentleman and his hon. Friends over so many years, it would not have been necessary to bring in the obligations in 1984.

§ Mr. Fatchett
Is the Minister aware of the Sunday Times survey which showed that chairmen of companies that donated to the Conservative party had a 50 per cent. better chance of receiving a knighthood? Is not that a further indication of the corruption and sleaze which surround the Government? Is not it time that shareholders had real 304 rights and were consulted before companies donate to the Tory party, which has done so much damage to the prospects of Britain's manufacturing industry?

§ Mr. Hamilton
I can remember a time not so long ago when it was a hanging offence in the Labour party to read the Murdoch press. I am glad to see that the Labour party has changed in some respects.

§ Mr. Roger Evans
Will my hon. Friend reject in terms the very sinister word in this question which so far appears to have been overlooked? The hon. Member for Walsall, North (Mr. Winnick) asked not only for shareholders, the owners of the companies to be balloted but also employees? Will my hon. Friend reject this sinister attempt to extend trade union power?

§ Mr. Hamilton
I certainly do reject it. It is as a result of changes that we have made to trade union law over the last 13 years that trade unions no longer pose a danger to the economic prosperity of the country.