Mary Ann Sieghart
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If you had to dream up a Trollopian character for a novel who combined consummate political skills with a polished charm and sinuous guile, you would need to look no further than Sir Hayden Phillips. Drafted in to run the Lord Chancellor’s Department when Lord Irvine of Lairg needed some serious hand-holding, Sir Hayden slipped silkily into the post. When moved across to the Department for Culture, Media and Sport, he graced the capital’s first nights and private views with a panache that rivalled that of any theatre director or gallery curator. So if this mandarin of mandarins cannot come up with a watertight solution for the reform of party funding, it is probably fair to say that the project is doomed.
His report yesterday was a good stab, though many questions remain unanswered — and possibly unanswerable. Since Sir Hayden has now been asked to chair discussions between the three parties, it will be his job to try to find the answers. And the big question is whether the parties are willing to make the sacrifices required to achieve any such agreement.
The Liberal Democrats are not a problem. They first came up with a package pretty much identical to Sir Hayden’s — a cap on both donations and spending — as early as 1998. Since they can neither raise nor spend nearly as much as the two main parties, this clearly works in their favour. But there are big problems for Labour and the Tories, both of which claimed yesterday that they wanted to join talks and to reach an agreed outcome.
That is a start, but it may not be wholly sincere. Either side may decide that it had more to lose than to gain from the package, and insist on conditions that it knew the other would not accept to scupper the deal. The negotiations would then break up, with each party blaming the other for the failure to agree. That is exactly what happened over whether there should be a televised debate between the party leaders in a general election campaign.
On the other hand, voters don’t feel passionately about the absence of a televised debate. They do feel passionately about the importance of cleaning up party funding. They are even prepared to dig into their own pockets to provide taxpayers’ money for the political parties in return for reform. There is a huge weight of responsibility, therefore, on the parties to reach consensus and prove to the public that the conduct of politics is capable of being improved.
For the Tories, the stumbling block is the cap on spending. This report comes at a time in the political cycle when money is pouring into the party’s coffers after 15 lean years. What is more, in the seats that the Conservatives need to win to form a government, its candidates are up against incumbent MPs who have just voted themselves a £10,000 a year “communications allowance” that will allow them to pump propaganda out to local voters. Opposition candidates must at least be allowed to match that.
The Tories also point out that annual spending caps do not take account of the much longer-term ebbs and flows of party income. Now that they have money at last, they are spending like mad on trying to recruit and train networks of agents, open campaign offices in the North, update computer hardware and software and rebuild membership, all of which fell into desuetude during the years in which the party was virtually broke.
But David Cameron and his party chairman, Francis Maude, have been brave in their support of the principle of caps on spending and donations. Their large donors are not happy and nor are many of their party members. If local constituency spending is to be counted alongside national spending, which it has to be, then local associations will find their much-cherished freedoms rather annoyingly circumscribed.
Yet spending limits have to be more robustly defined than they are now. At the last general election, after all, the two big parties spent £90 million between them, even though the statutory limit was supposed to be just £36 million. There was more loophole than law in the Political Parties, Elections and Referendums Act, which brought in the supposed spending limit. And who piloted that Act through the Commons? One Jack Straw, the Leader of the House of Commons, who is in charge of both the Government’s and the Labour Party’s response to the Phillips report.
He now has a task that is just as tough as Sir Hayden’s. He has to achieve a consensus between the affiliated trade unions, Tony Blair, Gordon Brown and Hazel Blears, the party chairman, each of whom seems to have a slightly different view of what concessions are acceptable.
Sir Hayden insists that, if trade unions want to give the Labour Party more than £50,000 each, then their donations must be traceable back to individual members who have given permission for their money to be used by Labour. Labour, though, claims that trade union donations to the party are already closely regulated and transparent — if anything, overregulated.
In this argument, though, they will be outnumbered by the Tories, the Lib Dems and Sir Hayden himself. If they want to stop their opponents outspending them in marginal constituencies, they will simply have to agree to a mechanism that links trade union funding more to individual members.
And if they don’t, they will be blamed for the failure to reform the morass of party funding. Gordon Brown wants to distance himself from Blairite sleaze, so that wouldn’t be a great start to a new premiership.
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Where did Mary Ann get the idea we were willing to have tax-payers' money given to the parties? I can't remember anyone asking me. If people want to support the parties they are welcome to pay their joining fee. Otherwise let them rot on the vine.
alexandria, Sheffield, UK
Des Taylor, if your numbers are right if you translate the UK pounds to dollars and pro rate the spend per capita the UK spent 2.92 dollars per head to the US 3.34 dollars. Not such a big difference I think (based on the US at 300 mil to the UK 60 mil population)
I think that anyone who gives millions to support any particular candidate is expecting something in return, and that something is not always going to be what the majority of the people want. Further, in the US when an individual spends >30 million dollars of her own money to save a senate seat there is more at stake than her desire to serve the people. (Daine Feinstein mid 90's ) When politicians are only beholden to their paymasters democracy starts to take a back seat.
Keith Manton, houston, usa
The state should not fund parties directly. The state should fund elections, however. Why not allow each candidate a budget of, say, £20000 for local campaigning, which will be monitored by the Electoral Commission (to ensure it is spent properly not funnelled up to HQ), and the full amount can be refunded if they win more than, say 5% of the votes. Any messing about in helicopters can be funded out of membership fees and donations.
Stu, London,
While I have donated small sums to a political party in the past (when living in UK), these were typically in the range of 5 to 10 GBP.
I cannot conceive of any honourable reason or justification for any million pound donation (or loan) to a political party. Even from a member's perspective it is obscene.
Equally if they cannot recruit members...too bad. We would just have to rely on electing individuals as MPs rather than faceless teams of spin doctors (liars) supported by unknown giant donors.
No tax subsidy. No large donors. Just seek members. No members - no party.
Brian Vallance, LEFKIMMI, Greece
Surely the only real need is to cap spending, then, in the main, donations will look after themselves; it is spending that is the real issue in an age of easy money. The Tories would not have their present complaint if this cap had been in position, as the constraint would have effectively evened out the income.
Henry Percy, London, UK
I beleve that anyone should be able to donate any amount of money to any candidate, or party. Three provisions. 1. Abosolute transparancy of how much was given. 2.By whom. 3. Where did they get the money. The taxpayers should not pay for elections.. The UK pays enough taxes to keep these people in the style they have become accustomed too. The 90 million was chicken feed. The total bill here was over $1 BILLION. Which proves monet cannot buy quality.
Desmond Taylor, Houston, USA Rexas
I don't want any donations at all to be given to political parties. If they can't attract members, so be it.
dave, berkshire, England
The effect of this will be to lumber the UK voters with the same three parties that have failed endlessly in the past because it will act against any new parties who will not get this funding.
It will do nothing about the corrupt nature of politicians. Handing a corrupt person extra money is not going to stop his corruption in any way. Politicians will still associate with companies for their own good and to our detriment.
Derek Emery, Bedworth, UK
The state funding of political parties will simply fossilise for eternity the existing political arrangements. No party has a divine right to continue to exist. If parties cannot garner sufficient financial support from the voluntary giving of their members and supporters they should be allowed to wither away and be replaced by newer more attractive parties.
Steve Harrison, Stonehouse, UK
Dear Mary Ann,
I'm a great admirer of your work but you have based this particular article on a simple factual error . Admittedly, the sloppy presentation of Sir Hayden's report is pretty misleading.
The two main parties did NOT spend £90 million between them on campaign costs in 2005. This is the figure for campaign costs AND routine costs of the two parties' main offices in financial year 2005. There is no evidence that they avoided the existing cap of national campaign spending as the article suggests.
Moreover, national campaign spending in 2005 was considerably lower in real terms than in the general election of 1997.
I hate to refer to an article of mine, but please look at my piece in The Sunday Times of 24 December 2006 which analyses the figures.
dr Michael Pinto-Duschinsky, Oxford,
No party has my permission to use any of my money!
Jim Golightly, Prudhoe, England
I have long thought that the election campaigns have no effect on the outcome of the election, so the 90 million quoted above is wasted.
Anything that reduces this waste has got to be a good idea.
Ray Frowd, Cambridge, UK
If we do not believe in either these politicians or their parties' policies, why should we be forced to support them with our hard earned money ?
This is 2007 NOT 1984
Bernard Parke, GUILDFORD,
Give them all a lump sum to invest. Let them spend as much as they like on campaigning, but whatever they spend _must_ come from the proceeds of investing that lump sum. For ever.
The party that has the most to spend will be the party that managed its investments most wisely, and therefore the one least likely to make a hash of the economy.
Even the Green Party could choose to put all its money in not-for-profit fair trade schemes and rely on viral marketing to spread the good word....
Ian Kemmish, Biggleswade, UK
The comment that we are ready to give more of out taxes to parties could only come from within the 'beltway'.
If parties want to spend money, go out and make it by getting support from individuals who beleive, not those who would quite like the choice of 'none of the above'
Tony, haywards heath, england
Telling the truth is fast, easy and cheap. What takes time, talent and kings' ransoms is persuading us that black is white. Contributions to political parties should be limited to a very low individual sum, and nothing else allowed from any source; and election spending constrained as tightly, and enforced by an overspend by a winner causing a rerun, with the expenses of all parties paid by him/her.
Further to my first sentence, political manifestos might also be limited to twice the thousand characters we are permitted in this response.
Noel Falconer, COUIZA, France
Politics is all about maintaining power.
From the moment a Government takes office the Leader has to assess, both the likely date for the next election and the likely sources for the Campaign funds to win it.
In 1987 the Tory Party ran out of Campaign funds 10-days or so before Polling day.
Maggie had to send Alistair McAlpine down to the City and stay there with a begging bowl till there was sufficient in it for solvency to be restored.
The mood of the voter is rapidly changing.
We are all getting fed-up with real politics that is drearier on TV than the political Soaps.
Having seen 2 days ago how Tony Blair got a greater percenatge of votes from Cameron's Party than from his own in the Trident debate, I think it is time for the Tory Party toplan 3 years hence.
Why not then dump Cameron and go for say Posh and Becks.
Michael Blatchford, Bath, UK
Now having read this article, I really must comment!
The first unbelievable statement in it ,is that citizens are willing to pay for political parties campaigning.
I am prepared to go to prison than allow one penny of my taxes be spent on political campaigning.
Anyway, what is so wrong about political parties spending every cent they have on campaigns?
It is damn good for TV, local radio, newspapers etc.
Don't cap anything! Let them spend their dosh.
People aren't fools.
I really believe elections are won and lost before the campaign ever starts.
People know they have had enough of one or the other.
People often vote against their better judgement because they just can't stand the sight of some candidates! No names mentioned!
Please, never let them spend my taxes on their campaigns!
John, Florianopolis, Brazil