Elections Bill — House of Lords, 2022-03-28
Topic: Mixed Topics
Sue Hayman (Labour, Centre-left): My Lords, there are quite a number of amendments in this group, of which Amendment 197 is mine. I want to pay attention to amendments specifically looking at foreign interference in our elections and some of the consequences of the provisions to extend the overseas elector franchise. Under the previous group of amendments tabled in the name of the noble Lord, Lord Clement-Jones, we discussed foreign interference, but looked specifically at digital materials, whereas this is wider By way of introduction, I say that voters deserve to know that elections in the UK are free and fair, and that laws are in place to safeguard them from unlawful influence. The Bill is an opportunity to make that tighter and better. The Electoral Commission recommended introducing new duties on parties, based on existing money laundering regulations, to enhance the due diligence and risk assessment of donations. The reasons behind this are to protect parties further and to build confidence among voters that sources of party funding are thoroughly scrutinised Unfortunately, we do not believe that the Bill takes this into account or does enough, as the Electoral Commission recommends. We need an effective regulatory and enforcement regime that ensures that foreign and dark money cannot enter our political system through donations to political parties. We believe there is the risk not only of money coming into the system that should not be there but of losing the level playing field that we have always striven to achieve in our election law. It is disappointing that the Bill so far does not address these problems. Our amendments and those of other noble Lords aim to address this As it stands, the Bill creates a paradox, because it opens the floodgates for a potentially large influx of foreign-based money into our democracy while making it harder for civil society organisations, charities and trade unions to have their say—as we heard during the debates on previous days on Clauses 24, 25 and 27—despite the massive contribution they make to British life. We have tabled amendments that would protect our democracy from this foreign money that is already impacting our politics. We believe that this Bill threatens to make the situation much worse Concerns about how our democracy is being affected by malign foreign influences have been highlighted in the Russia report and were mentioned in the previous debate. I am sure we will hear more about this from the noble Lord, Lord Wallace of Saltaire, when he speaks to his amendment on this specifically, so I will not go into any more details about the Russia report Why are we concerned that the Bill will allow even more foreign interference in our democracy? The system created by the Bill is more vulnerable to overseas interference. It allows a person to call up any and every local authority to say that they were resident in the area 30 or 40 years ago and provide what we think is fairly flimsy proof; I am sure that it will not be a photographic identification, as would be the case for other electors. Having done that, they would then be able to donate enormous sums of money, if they wished. I am sure that the Minister will say that that is not the intention but, if he accepts our amendments, he can be sure that the possibility of this happening is strictly safeguarded We have a number of amendments. Amendment 197 specifically looks at whether a person making a donation for political purposes is a "permissible donor"—if not, that is then rejected. My noble friend Lady Smith of Basildon has an amendment that would require donors to be based in the UK, and one that would prevent overseas electors from donating. My noble friend Lord Collins has an amendment about the Secretary of State publishing "draft legislation to regulate expenditure deriving from donations by non-UK nationals." We also support other amendments in this group that have been tabled to provide better security against overseas donations. If the Minister has understood our genuine concerns and intends to close this loophole that will weaken our democracy, he can choose from plenty of amendments that will greatly improve the Bill. We believe that this is a serious matter and that these amendments bring proportionate safeguards However, if the Government do not accept these amendments or commit to introducing their own in a similar vein, it will look as if the real motivation behind these changes to overseas voting is to create a loophole in donation law that would allow donors to bankroll Conservative Party campaigns from their offshore tax havens. What other justification is there for changing the law in this way, without closing this loophole Let us look at some of the evidence. Research from the Times shows that, through existing methods, the Conservative Party was able to accept about £1 million from UK citizens living in tax havens ahead of the 2017 general election. The Bill takes away the barriers that kept this at just £1 million. With the situation in Ukraine, it is more important than ever to end the flow of dirty Russian money flooding into our country—and that must include political donations, to block the threat of foreign interference in our politics We appreciate that it is impossible for someone with only Russian nationality, however rich they are, to donate legally to a UK political party. But what has undoubtedly happened is that a series of people with dual UK-Russian nationality or with significant business links with Russia have donated heavily to the Conservative Party in recent years. Questions about Russian donors that warrant further investigation have been raised in the media during the current Prime Minister’s tenure. For example, Lubov Chernukhin has given the Conservative Party over £2 million, £1.9 million of which was given after her husband, Vladimir, received money from Suleiman Kerimov, a man who was later sanctioned by the United States Treasury, not only for being a Russian government official: he was arrested in France for smuggling in hundreds of millions of euros in suitcases Then there is Mr Temerko, who has donated £1.2 million to the Conservative Party. The problem is that he used to operate at the very top of the Russian arms industry, with connections high up in the Kremlin. He works with Mr Fedotov, who is a key shareholder in Aquind Ltd, which the Guardian reports has donated £700,000 to the Conservative Party, along with another firm. This is unfortunately the same Mr Fedotov who, according to the Pandora papers, has revealed that his fortune was made through an offshore financial structure in the mid-2000s, at about the time that he was allegedly siphoning funds from the Russian state pipeline company, Transneft Another big Tory donor in the Johnson era is the businessman Mohamed Amersi, who has given £258,000 over the period. He advised on a lucrative telecom deal in Russia in 2005, with a company that a Swiss tribunal subsequently found to be controlled by an associate of Russian President Vladimir Putin. We consider this extremely concerning. One reason for this is that the Sunday Times recently reported that high-value Conservative donors were invited to participate in an "advisory" group, during which they were allowed to bend the ear of the Prime Minister, senior Ministers and officials Members of the public have a pretty low opinion of politicians much of the time. Reports of outside influence that threatens to undermine our democracy serve only to further drive down trust. The Bill provides an opportunity to increase trust in our political system, but, unless this loophole is closed and political donations are cleaned up and given proper scrutiny, trust will continue to fall. If we are to open up our system by allowing far more overseas electors to vote, we must at the same time ban them from making donations to individual politicians and parties. That is the only way to ensure that our system does not receive unwarranted donations and influence from outside. I beg to move.