HC Deb 05 June 1997 vol 295 c541
11. Mr. Winnick

To ask the President of the Board of Trade if she will make it her policy that prior to companies making political donations a ballot of shareholders must be held. [665]

Mr. Nigel Griffiths

There is great public concern about the source of certain party-political funds. I know that my hon. Friend will warmly welcome the Government's commitment in the Queen's Speech to reforming the regulation and funding of political parties.

Mr. Winnick

Indeed I do.

Is it not the case that, since 1913, no trade union has been able to donate money for political purposes unless it has first held and won a political ballot? As that is the case, and has been for many years, what justification can there be for companies not holding a similar ballot among shareholders? All we want is a level playing field, equality and fairness. I hope that that will soon come about.

Mr. Griffiths

As my hon. Friend has rightly pointed out, there is an inconsistency. The Government will make an announcement shortly about how they propose to take forward reform of the funding of political parties.

Mr. Rowe

How many companies that contributed to the Labour party's funds in the run-up to the general election would be affected by the proposal?

Mr. Griffiths

I suspect that, if more companies are involved now than were under the Conservatives, it is a reflection of the terrible service that the Conservative Government gave businesses large and small. Perhaps that is why the hon. Gentleman finds himself in his present sad seat.