PAYMENTS ETC. WHICH ARE (OR ARE NOT) TO BE TREATED AS DONATIONS BY PERMISSIBLE DONORS (Hansard, 13 March 2000)

§ Mr. Deputy Speaker (Sir Alan Haselhurst)
With this, it will be convenient to discuss the following Government amendments: Nos. 15, 90 to 93, 96, 23, 97 to 100, 103 to 106, 111 and 114.

§ Mr. Robert Walter (North Dorset)
I am intrigued that the Minister is not speaking to what is a large group of amendments. When we discussed the Bill in the Standing Committee, I was delighted that the Government promised to revisit on Report the two important aspects that are covered in the amendments. One concerns the international links that our various political parties have. Under the Bill as drafted, there is a danger that we may cut ourselves off from the outside world to prevent any money flowing through the international links that our parties have. It is clear that a modern political party should be able to deal with its sister parties overseas.
The second important strand deals with the power of trustees and bequests. Government amendments Nos. 15, 111 and 114 essentially seek to delete the paragraph which states that any donation received by a registered party by way of a donation by a trustee, in his capacity as such, shall be regarded as a donation received by the party from a person who is not a permissible donor. That was at variance with Neill. Although Neill was fairly specific about blind trusts, that paragraph would have covered open trusts. Neill's recommendation 22 was that open trusts should be permitted, and it was my understanding that the Government had accepted that. Paragraph 3.37 of their White Paper states: In recommendations 22 and 23 of their report, the Neill committee addressed the wider issue of donations to individual members of political parties or to unofficial groups within a party, as distinct from donations to political parties as such. The Government sympathises with the view that the principles of openness and accountability should apply equally to such donations. Consider the case of a trust that was set up as a result of a bequest, the purpose of which was to donate funds for political purposes. To suggest, as the clause does, that that would not be a permissible source flies in the face of Neill and in the face of what I regard as natural justice.
44 I hope not to die too soon, but, if I were to leave a bequest that was managed by trustees on my part and my will said that I would like the trustees at their discretion to make occasional donations to the Conservative party, I would expect my wishes to be carried out. Subsection (4) would mean that trustees would not be able to carry out my wishes; it would not be permissible to make such a donation.
In Committee, the Opposition made it clear that we saw little purpose in banning such donations. I welcome the Government's acceptance of that, as I welcome their acceptance that international links should be preserved and that the money necessary to preserve those links should be allowed to flow.

§ Mr. Andrew Stunell (Hazel Grove)
For my part, I welcome the direction in which the new clause is going. The discussion in Committee covered many of the points, and I echo what the hon. Member for North Dorset (Mr. Walter) has said.
One or two loose ends remain. May I ask the Minister to say something on the role of trustees of property? I have done my best to comprehend precisely what the Minister believes he has achieved in that area. I am still not sure that the Government have achieved what hon. Members want them to achieve.
I ask the Minister to say a little more about subsection (5) and how it will be applied, especially as the words used in the subsection are used in many other parts of the Bill. Broadly, however, I welcome new clause 2, and Liberal Democrat Members will support it.

§ Mr. Mike O'Brien
I am grateful to the Liberal Democrat and Conservative Members who have supported this group of amendments, which give effect to the prohibition on foreign and anonymous donations.
The Bill currently prevents political parties and other regulated bodies and persons from accepting donations from sources other than permissible donors. One effect of that provision is to prevent not only hon. Members, but party members and party officers from undertaking overseas visits at the expense of an overseas Government or body. That was not our direct intention. As the hon. Member for North Dorset (Mr. Walter) has rightly said, it is important that we maintain our international links with parties of a similar philosophical view. Such links both add to knowledge abroad of this country, and enable us to maintain very important relationships with other countries that benefit the United Kingdom not only politically, but in many other spheres.
Hon. Members undertake many and varied overseas visits in pursuance of their proper parliamentary duties. Such visits are invaluable in promoting hon. Members' understanding of a wide variety of issues, and thereby better equip them to discharge their duties as parliamentarians. A quick glance through the Register of Members' Interests reveals visits paid for by overseas Governments, overseas territories, overseas Parliaments and a variety of political foundations, such as the Konrad Adenauer Foundation. The main point is that, in the Bill as it stands, not all those sponsors would constitute a permissible donor.
The issue is not confined to Members of Parliament. We have had representations from the Green party and other groups about their arrangements, and they have sought the type of changes proposed in this group of 45 amendments. New clause 2 and the raft of amendments grouped with it are directed primarily at addressing that issue. The key provisions are in subsections (3) and (4) of the new clause, which applies to donations to political parties.
Government amendment No. 100 makes identical provisions for party members, members of associations and holders of elected office.
I very much hope that the House will accept this group of amendments. From the broad support that hon. Members have demonstrated for the provisions, it seems that they will be accepted.
A subsidiary purpose of this group of amendments is, in certain very limited cases, to allow donations from trustees. Clause 48(4)(b) currently provides that a donation received by a registered party from a trustee acting in his capacity as such is to be treated as a donation from a person who is not a permissible donor. That provision sits uncomfortably with clause 48(3), on donations made in the form of a bequest.
Clearly, when a person's will includes a bequest of money or property to a political party, the trustees of the will should be able to give effect to that bequest. Reckless as the hon. Member for North Dorset (Mr. Walter) may be to want to give money to the party that he mentioned, I think that he should have every right to do so. Provided that the deceased was on the electoral register at the time of his or her death, the registered party named in the will should be able to accept the bequest.
There may be other cases in which a trustee is simply acting as an agent in passing money or property. Again, it would be legitimate for a party to accept a donation of property provided that the person on whose behalf the trustee is acting is a permissible—that is, registered—donor. In such circumstances, clause 48(7) would apply, and the trustee would be acting as an agent for another person. That other person would be recorded as the donor.
I hope that, now that those points have been dealt with, the House will be able to give strong support to the new clause and amendments in this group.