Political Donations (Hansard, 17 February 2000)

§ The Parliamentary Under-Secretary of State, Foreign and Commonwealth Office (Baroness Scotland of Asthal)
My Lords, it is up to individual member states of the European Union to decide upon their domestic legislation regarding donations to political parties, and on how to deal with irregularities or breaches of the rules. We do, of course, follow political developments within the European Union with interest. Noble Lords will have seen reports that rigorous procedures are pursued in Germany following allegations of irregularities relating to donations to political parties.

§ Lord Lamont of Lerwick
My Lords, I am grateful to the noble Baroness for that reply. Given the argument that she advanced a few weeks ago that the internal affairs of Austria are of common concern, does she not agree that the allegations against the late President Mitterrand and Chancellor Kohl are also of great concern to this country? Would it not be intolerable if a government in any European country used state money to try to influence the outcome of an election in another country? Is it not important, therefore, that the origins of the Kohl money become clear so that the people of this country do not believe that the European project is being pursued by a cabal using secret funds to suppress opposition?

§ Baroness Scotland of Asthal
My Lords, it is most important to note that the countries themselves are addressing this issue. In the case of Germany, the Parliament president has already levied a fine on the Christian Democratic Union and I understand that further action may follow. Many noble Lords will know that the extent of the fine is 43 million deutschmarks. It is obviously important that political parties behave appropriately. Your Lordships will be aware that the Government take that matter seriously. Later this year we shall introduce appropriate legislation in relation to it.

§ Lord Harris of Greenwich
My Lords, does the Minister agree that it is particularly praiseworthy that the noble Lord, Lord Lamont, has raised the question of political donations? Will she consult her noble and learned friend the Attorney-General on the exchange of correspondence between the Home Secretary and Conservative Central Office about what happened to Mr Asil Nadir's substantial contribution to the Conservative Party, which there is every reason to believe was stolen money?

§ Baroness Scotland of Asthal
My Lords, I am happy to tell the noble Lord that we still have not had an adequate response on that. We await with interest the various other revelations that doubtless the party opposite will be anxious to disclose, bearing in mind its long history of non-disclosure in this regard.

§ Lord Stoddart of Swindon
My Lords, is it true that European Union governments are not considered as being foreign countries for the purpose of foreign donations to political parties? If that is so, does that mean that shady money, money from the European Union Commission or money from foreign governments could be used to finance British political parties?

§ Baroness Scotland of Asthal
My Lords, the position is clear so far as concerns the United Kingdom. As I said, we shall bring to this House the political parties and referendums Bill, in which we seek to put such matters on clear lines. Our party has made it absolutely clear that it does not accept donations from foreign governments or others. That is a position which we hope will be shared. When the Bill arrives in this House and in the other place, I am confident that all noble Lords—particularly those opposite—will give it their full and unreserved support.

§ Lord Waddington
My Lords, what is the Government's attitude towards contributions to British political parties from residents of the European Union? Is it the Government's view that there is something more meritorious in such contributions than in contributions to British political parties from residents of Commonwealth countries?

§ Baroness Scotland of Asthal
My Lords, we do not take that view. It is surprising to hear such comments coming from the Benches opposite. We know that the party opposite has received a number of contributions from individuals who are resident elsewhere.

§ Lord Waddington
My Lords, the noble Baroness has not answered the question. Will she please do so? Do the Government view differently contributions to British political parties from residents of the European Union as compared to contributions to British political parties from residents of Commonwealth countries?

§ Baroness Scotland of Asthal
My Lords, we take the same approach in all cases. We have clearly stated that all contributions made to political parties should be transparent, wheresoever they come from.

§ Viscount Cranborne
My Lords, I hope that I may pursue this matter a little further. Does the Minister's reply mean that when the Bill is brought forward the same rules will apply to contributions from citizens of European Union countries as to contributions from countries outside the European Union?

§ Baroness Scotland of Asthal
My Lords, the theme remains the same—transparency, transparency, transparency and proper recording. I am delighted, as always, to provide your Lordships with entertainment in this regard, but I should remind your Lordships that the Question of the noble Lord, Lord Lamont, is a matter for the Foreign Office, and we are now straying a little outside that realm.

§ Lord Skelmersdale
My Lords—

§ Lord Brookman
My Lords—

§ Baroness Jay of Paddington
My Lords, I think it is the turn of the government side.

§ Lord Brookman
My Lords, we should avoid the shadow boxing emanating from the Opposition Benches. The allegation against Chancellor Kohl is that he took very large political donations from foreign and other sources which he did not list in his party's public accounts. Does the Minister agree that the Conservative Party has been doing that for as long as I can remember? Does she further agree that the difference is that in this country we do not have the laws, as yet, to stop it?

§ Baroness Scotland of Asthal
My Lords, I respectfully agree with my noble friend. I emphasise the words "not yet". I remind your Lordships, yet again, that there will be an opportunity to regularise that position later this year. I am sure that all noble Lords now await that moment with bated breath.

§ Lord Mackay of Ardbrecknish
My Lords, returning to the question of European Union funding, I am puzzled by the answers given by the Minister to the questions of my noble friends Lord Waddington and Lord Cranborne. If I am not wrong, citizens of the European Union are eligible to come to this country and to be on the electoral register. Surely, therefore, citizens of the European Union are quite entitled to give donations to British political parties? That was the question that was asked. Is the answer yes or no, because the noble Baroness did not seem to know?

§ Baroness Scotland of Asthal
My Lords, anyone resident in this country will be able to make a contribution. But there remains the question of transparency. The noble Lord knows that, in relation to contributions to our party, any contribution over £5,000 is declared in order that it should be transparent. I invite the party of noble Lords opposite to emulate that if it dares.

§ Lord Skelmersdale
My Lords, in answer to my noble friend Lord Cranborne—

§ Baroness Jay of Paddington
My Lords, my noble friend has answered the questions on this matter very satisfactorily. We have now reached the 17 minutes point and it is time for the next Question.