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Political Parties: Finance

Volume 480: debated on Monday 6 October 2008

To ask the hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission how many letters of reprimand the Electoral Commission issued to regulated donees in each year from 2001 to 2007; how many such letters it has issued in 2008 to date; and how many of those related to late declarations in each such year. (221888)

The Electoral Commission informs me that no letters of reprimand were issued to regulated donees for late reporting between 2001 and 2007. During this period, the Commission focused on providing guidance and advice. The Commission began to issue letters of reprimand to regulated donees in February 2008 and has issued 150 such letters for late reporting of donations up to 30 September 2008.

To ask the hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission pursuant to the Ministerial Correction of 3 July 2008, Official Report, column 8MC, on political parties: finance, who took the operational decision to destroy the hard copy records; and for what reasons. (222220)

The Electoral Commission informs me that in July 2005 the then Director of Regulatory Services ordered the destruction of hard copy records on the grounds that there was no current or future business need for them and they did not hold any historical value for the National Archives.

To ask the hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission for what reasons the Commission has not published a list of regulated donees who have reported political donations (a) late and (b) on time since 2001. (222955)

Schedule 7 to the Political Parties, Elections and Referendums Act 2000 (PPERA) requires all regulated donees to report all donations to the Commission within 30 days of accepting them if the value of the donation is above certain thresholds. The Electoral Commission informs me that between 2001 and 2007, the Commission's primary focus was on encouraging registered parties and regulated donees to comply with their statutory requirements. During that period, no record was kept of whether donations to regulated donees were reported late or on time.

The Commission now considers that parties and regulated donees have had sufficient time to acclimatise to the obligations placed upon them by the regulatory framework. Since 1 January 2008 all cases of late reporting have been identified and details have been published on the Commission's website.

To ask the hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission pursuant to the answer to the hon. Member for Hayes and Harlington on 17 June 2008, Official Report, column 825W, on political parties: finances, (a) what and (b) how many documents the Electoral Commission has destroyed; how many of them were original regulated donee completed return forms; whether the information on these completed forms has been retained by the Commission; and what the reasons for the destruction were. (223082)

The Electoral Commission informs me that in July 2005 the then Director of Regulatory Services ordered the destruction of certain hard copy records on the grounds that there was no current or future business need for them and they did not hold any historical value for the National Archives.

The paper files destroyed comprised: by-election expenses, party campaign expenditure, policy development grants records, donation returns for all candidates and parties during the years 2001 to 2003, and statements of accounts for all parties and accounting units for the years 2001-02.

The Commission further informs me that it does not hold information as to the exact number of documents destroyed or how many were original regulated donee forms. All information in these documents which the Commission is required to publish on its registers was retained and is available on its website at:

www.electoralcommission.org.uk.

To ask the hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission with reference to the Electoral Commission's consultation paper on Standardising Statements of Accounts for Parties and Accounting Units, whether the Commission proposes that a compliance grant will be provided to political parties in the same manner as a PPERA compliance grant was provided. (223739)

The Electoral Commission informs me that it has not proposed that a compliance grant be provided for political parties. The Commission informs me that whilst parties may have to bear some costs, these are expected to be modest and offset by the benefits as indicated in the consultation paper. The Commission will publish guidance and provide training for all parties in time for the preparation of the 2009 statements of accounts.

To ask the hon. Member for Gosport, representing the Speaker’s Committee on the Electoral Commission with reference to the Electoral Commission’s consultation paper on Standardising Statements of Accounts for Parties and Accounting Units, what plans the Commission has to undertake audits of local accounting units; and whether the Commission proposes that the audits will be paid for by the Commission or the local party. (223740)

The Electoral Commission informs me that under section 43 and schedule 5 of PPERA, registered parties and accounting units are required to have their accounts audited if:

their income or expenditure in any financial year exceeds £250,000, or

their income or expenditure is lower than this but the Commission directs that their accounts should be audited.

Where a party or accounting unit does not carry out such an audit within the statutory time limits, the Electoral Commission may appoint an auditor and may recover the auditor’s expenses including remuneration.

The Electoral Commission further informs me that it is currently developing an audit strategy which will include audits by the Commission of the accounts of registered parties and local accounting units whose income or expenditure in a financial year is lower than £250,000 where a risk assessment indicates that this is appropriate. The Commission is not proposing to recoup the costs of such audits.

To ask the hon. Member for Gosport, representing the Speaker’s Committee on the Electoral Commission with reference to the Electoral Commission’s consultation paper on Standardising Statements of Accounts for Parties and Accounting Units, how many pages long the Commission estimates the supporting manual for local accounting units will be. (223741)

The Electoral Commission informs me that it is not yet in a position to estimate the length of the guidance manual. The Commission will develop the guidance in discussion with party treasurers to ensure that it is as comprehensive and user-friendly as possible.

To ask the hon. Member for Gosport, representing the Speaker’s Committee on the Electoral Commission what role the Ministry of Justice played in the preparation of the Electoral Commission’s consultation paper on Standardising Statements of Accounts for Parties and Accounting Units. (223742)

The Electoral Commission informs me that the Ministry of Justice played no role in the preparation of the consultation paper ‘Standardising Statements of Accounts for Parties and Accounting Units’.

To ask the hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission what criteria the Commission uses when deciding whether to refer to the police cases of regulated donees notifying it of late donations. (223903)

The Electoral Commission informs me that the position remains as stated in the answer I gave the hon. Member for Leeds, North-East (Mr. Hamilton) on 27 March 2008, Official Report, column 349W.

To ask the hon. Member for Gosport, representing the Speaker’s Committee on the Electoral Commission with reference to the Electoral Commission’s consultation paper on Standardising Statements of Accounts for Parties and Accounting Units, what the timetable is for the publication of the draft guidance and draft regulations; and whether the Commission will consult separately on the draft regulations and guidance. (224320)

The Electoral Commission informs me that it will confirm the nature of any proposed new regulations, and the associated timetable for the publication of draft regulations and guidance, in the light of the public consultation which ended on 3 October 2008. If the Commission decides to proceed with the proposals set out in the consultation paper, it proposes to consult on the draft regulations and guidance with registered political parties and other stakeholders in November.

To ask the hon. Member for Gosport, representing the Speaker’s Committee on the Electoral Commission with reference to the Electoral Commission’s consultation paper on Standardising Statements of Accounts for Parties and Accounting Units, what the (a) estimated compliance costs to political parties and (b) the estimated cost to public funds in terms of (i) set-up costs and (ii) ongoing regulatory costs of the proposals are. (224322)

The Electoral Commission informs me that it has not quantified the estimated costs to political parties, but that it has set out its assumptions on the level of the costs and benefits in the draft impact assessment contained within the consultation paper ‘Standardising Statements of Accounts for Parties and Accounting Units’. A copy of the Commission’s consultation paper has been placed in the House of Commons Library.

The Commission has invited views on the draft impact assessment as part of its consultation, and will review any comments it receives and reflect any changes in the final impact assessment.

The Commission informs me that it estimates the set-up costs to public funds of implementing the proposals at approximately £90,000 and that it has allocated funds from its existing budget to cover these costs. The Commission does not expect implementation of the proposals to result in any significant additional ongoing cost to public funds.

To ask the hon. Member for Gosport, representing the Speaker’s Committee on the Electoral Commission with reference to the Electoral Commission’s consultation paper on Standardising Statements of Accounts for Parties and Accounting Units, whether local accounting units will be obliged to report in their accounts donations in kind from their national political party. (224323)

The Electoral Commission informs me that its consultation paper proposes that accounting units in receipt of transfers from the central party should show these in their statements of accounts as income (paragraph 4.9), and that gifts including gifts of services should be reported as income (paragraph 4.7). The Commission will consider the responses to these and its other proposals when considering the way forward.

A copy of the Commission’s consultation paper, ‘Standardising Statements of Accounts for Parties and Accounting Units’ has been placed in the House of Commons Library.

To ask the hon. Member for Gosport, representing the Speaker’s Committee on the Electoral Commission with reference to the Electoral Commission’s consultation paper on Standardising Statements of Accounts for Parties and Accounting Units, whether a full impact assessment for the proposals will be undertaken in line with the Department for Business, Enterprise and Regulatory Reform’s Impact Assessment Guidance, including a small firm’s impact assessment. (224324)

The Electoral Commission informs me that it is committed to imposing the minimum necessary administrative burden on regulated bodies, in accordance with the principles of good regulation. The Commission’s consultation paper included a draft impact assessment and invited views on its analysis. The Commission informs me that it will publish a final impact assessment after considering the consultation responses. The final assessment will include consideration of the issues covered by the Small Firms Impact Test where appropriate.

A copy of the Commission’s consultation paper, ‘Standardising Statements of Accounts for Parties and Accounting Units’ has been placed in the House of Commons Library.