the lobbying act

The Lobbying Act- What you need to know ahead of the Assembly elections

Clare Hardy, Associate (PSL)

15th March 2016

Elections in Wales in 2016• 5 May 2016• National Assembly for Wales• Police and Crime Commissioners

Legislation• Transparency of Lobbying, Non-Party Campaigning

and Trade Union Administration Act 2014 • Political Parties, Elections and Referendums Act

2000 – Amended by Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014

Other relevant legislation• National Assembly for Wales (Representation of

the People) Order 2007• Representation of the People Act 1983• Charity Law

Why introduce new legislation?• Coalition Agreement after May 2010 general

election:• “We will regulate lobbying through introducing a

statutory register of lobbyists and ensuring greater transparency.”

• “We will also pursue a detailed agreement on limiting donations and reforming party funding in order to remove big money from politics.”

Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014• Part 1: Registration of Consultant Lobbyists• Part 2: Non-Party Campaigning • Part 3: Trade Unions’ Register of Members• Part 4: Supplementary

Registration of consultant lobbyists• Consultant lobbying: Communication with

Minister of the Crown or permanent secretary relating to UK Government:‒ Legislation, policy, contracts, grants, licences,

other authorisation, exercise of functions• Therefore does not apply to communication with

Welsh Ministers on devolved matters

Lobbying Welsh Ministers• Presiding Officer told Secretary of State Assembly

should make decisions on governance• Assembly’s Standards Commissioner and

Standards Committee decided arrangements to regulate lobbying were sufficiently robust

Assembly Guidance • National Assembly For Wales Guidance On

Lobbying And Access To Assembly Members• Supplements Code of Conduct for Assembly

Members• AM must not bring Assembly into disrepute• No preferential access or treatment for

professional lobbyists or their employers• Professional lobbyist includes all those

undertaking lobbying on a professional basis and in a paid role

Assembly Guidance• AM must know identity of person or organisation

lobbying and motive for lobbying• AM should consider keeping records of meetings

with lobbyists• AM should not accept paid work involving

lobbying• AM should decline gifts from professional

lobbyists• AM may attend events – but not if promoted as

buying access or influence over AM

Registration of consultant lobbyists when Part 1 of the Act applies• Consultant lobbying

‒ Communication with Minister of the Crown or permanent secretary relating to UK Government

‒ By person registered under Value Added Tax Act 1994

‒ On behalf of another person for payment in the course of business

‒ Not subject to an exception

Registration of consultant lobbyists: Requirements• Registration• Provision of information to Registrar – every

quarter and on notice from Registrar of Consultant Lobbyists

• Offences when failing to comply• Power for Registrar to impose civil penalty

Offences • Carrying on consultant lobbying business whilst

unregistered• Consultant lobbying whilst registration is

materially inaccurate or incomplete• Failure to submit information return by two

weeks after quarter end

Offences• Provision of materially inaccurate or incomplete

information return• Failure to provide information in response to

information notice by specified deadline• Provision of materially inaccurate or incomplete

information in response to an information notice

Civil Penalties• Registrar may impose civil penalty if satisfied a

person’s conduct is an offence• Registrar must first serve notice and allow

written representations• Civil penalty may not be imposed after criminal

proceedings instituted• Person may not be convicted of offence for

conduct for which they received civil penalty

Non-party Campaigning• Amendment of Political Parties, Elections and

Referendums Act 2000 – Part VI‒ Definitions of controlled expenditure and election

material‒ Limits on controlled expenditure‒ Amended details of recognised third parties and

requirements for reporting donations to recognised third parties

‒ Provision for lead and minor campaigners

Controls relating to third party national election campaigns • Current requirements of Part VI Political Parties,

Elections and Referendums Act 2000

Controlled Expenditure • Expenses incurred by or on behalf of a third party

which can reasonably be regarded as intended to promote or procure electoral success at a relevant election for:‒ Registered party‒ Registered parties advocating particular policies‒ Candidates holding particular opinions

• Includes prejudicing electoral success of other candidate

• Does not need to name party or candidate

Controlled Expenditure• Expenses on:

‒ Material made available to the public‒ Canvassing and market research‒ Press conferences and other media events‒ Transport of persons to places to obtain publicity‒ Public rallies and other public events – other than

annual conference or public procession or protest meeting as defined in Public Processions (Northern Ireland) Act 1998 for which notice is given

• Includes cost of premises• Does not include cost of protection

Notional Controlled Expenditure• Property, services, facilities given free of charge

or at a discount of more than 10%• With a value of over £200• Used by third party in the same way as controlled

expenditure

Purpose and Public Tests• Activity may have purpose of influencing voters

even if not naming party or candidate – if campaigning for a policy closely associated with political party

• Electoral Commission Guidance:• Members and committed supporters of an

organisation not usually considered public• Other people an organisation regularly

communicates with usually considered public

Election Material• Material which can reasonably be regarded as

intended to promote or procure electoral success at a relevant election for:‒ Registered party‒ Registered parties advocating particular policies‒ Candidates holding particular opinions

• Includes prejudicing electoral success of other parties or candidates

• Does not need to name party or candidate

Recognised third parties• Third party

‒ Person or body other than a registered party‒ Registered party promoting or procuring electoral

success of another registered party• Recognised third party

‒ Third party which has registered with Electoral Commission under s.88 Political Parties, Elections and Referendums Act 2000

Regulated period• A period in relation to which a limit is imposed by

Schedule 10 to the Political Parties, Elections and Referendums Act 2000

Regulated period for 2016 Assembly Election• Regulated period for Assembly election: 5

January 2016 to 5 May 2016• Spending on regulated campaign activity for

police and crime commissioner elections in Wales counts towards expenditure limit for National Assembly elections – Electoral Commission guidance

Restrictions on controlled expenditure• Must be authorised by responsible person or

person authorised by responsible person• Must be within financial limits imposed by

Political Parties, Elections and Referendums Act 2000

Payment of controlled expenditure• Payments must be made by responsible person

or person authorised by them• Payments of more than £200 must be supported

by invoice or receipt• Claims for payment must be sent to responsible

person no later than 30 days after end of regulated period

Limits on controlled expenditure by third parties • Limit during regulated period by third party

which is not recognised third party: ‒ England: £20,000‒ Scotland, Wales, Northern Ireland: £10,000

Limit on controlled expenditure by recognised third party• General election to National Assembly for Wales:

£30,000

Notification of lead and minor campaigners• Third parties campaigning together can notify

Electoral Commission of lead campaigner and minor campaigner

Returns relating to controlled expenditure• Responsible person must provide Electoral

Commission with return relating to controlled expenditure by recognised third party during regulated period

• Commission makes returns available for public inspection

Reports on controlled expenditure by third parties• Responsible person must report to Electoral

Commission on controlled expenditure: item, supplier, value, date

• Notional controlled expenditure‒ Must report value of items received free‒ Must report items of items received at

commercial discount if worth more than £200

Reports on donations to recognised third parties• Responsible person must report donations

‒ All impermissible donations‒ All accepted donations over £7,500‒ All accepted donations adding up to over £7,500

from same donor‒ Total of other accepted donations worth more

than £500 and less than or equal to £7,500

Deadlines for 2016 Assembly election• Receipt of invoices for campaign spending: 6 June

2016• Payment of invoices for campaign spending: 4

July 2016• Reporting campaign expenditure and donations:

5 August 2016

Suggested Actions• Decide if your activities require you to register

with Electoral Commission Keep this under review

• Consider status of information on issues supported by particular parties

• Consider impact of joint campaigning

Government Grants: Anti-lobbying clause• UK Government grants to include anti-lobbying

clause in terms and conditions from 1 May 2016• “The following costs are not Eligible Expenditure:-

Payments that support activity intended to influence or attempt to influence Parliament, Government or political parties, or attempting to influence the awarding or renewal of contracts and grants, or attempting to influence legislative or regulatory action.”

Guidance from Electoral Commission• Introduction for non party campaigners• National Assembly for Wales and Police and

Crime Commissioner elections May 2016: Non-party campaigners

Q & A

Clare HardyT: 029 2039 1766E: clare.hardy@geldards.com

Thank You