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Straw: 'End excessive spending' Straw: 'End excessive spending'
(9 minutes later)
Jack Straw has put forward measures to beef up the Electoral Commission's powers to tackle "excessive" spending by political parties.Jack Straw has put forward measures to beef up the Electoral Commission's powers to tackle "excessive" spending by political parties.
The justice secretary said the amounts spent by the two main parties - Labour and the Tories - before elections had spiralled into a "spending arms race".The justice secretary said the amounts spent by the two main parties - Labour and the Tories - before elections had spiralled into a "spending arms race".
He said a White Paper proposed to tackle the problem by redefining what counted as campaign spending.He said a White Paper proposed to tackle the problem by redefining what counted as campaign spending.
But the Tories said union donations to Labour were preventing reform.But the Tories said union donations to Labour were preventing reform.
Mr Straw told MPs the White Paper on party finance and expenditure would build on proposals by senior civil servant Sir Hayden Phillips, which called for reform of the Electoral Commission, tighter controls on expenditure and a move towards state funding, linked to a cap on donations.Mr Straw told MPs the White Paper on party finance and expenditure would build on proposals by senior civil servant Sir Hayden Phillips, which called for reform of the Electoral Commission, tighter controls on expenditure and a move towards state funding, linked to a cap on donations.
'Clear signal''Clear signal'
Under the plans the Electoral Commission would have "more effective investigatory powers, enabling it to access information from anybody where it suspects a breach of the rules".Under the plans the Electoral Commission would have "more effective investigatory powers, enabling it to access information from anybody where it suspects a breach of the rules".
There would be "robust civil sanctions, with criminal proceedings as an alternative".There would be "robust civil sanctions, with criminal proceedings as an alternative".
Party funding reform is needed to restore trust in our politics and to deal with the perception that large donations can buy undue influence over policy or patronage Francis MaudeShadow Cabinet Office minister
"Strengthening the Electoral Commission will send a clear signal that politics and politicians are effectively scrutinised - never above the law," Mr Straw said."Strengthening the Electoral Commission will send a clear signal that politics and politicians are effectively scrutinised - never above the law," Mr Straw said.
The White Paper proposes a return to the system of "triggering" which would regulate all candidates' spending up to the point they are elected. The plans would bring back the system of "triggering" which would regulate all candidates' spending up to the point they are elected.
Mr Straw said he was ready for a "debate" on a curb on donations - but did not indicate any maximum figure.Mr Straw said he was ready for a "debate" on a curb on donations - but did not indicate any maximum figure.
'Regret''Regret'
Sir Hayden had proposed a cap at £50,000 on individual donations in his review of funding.Sir Hayden had proposed a cap at £50,000 on individual donations in his review of funding.
Mr Straw said to introduce caps "we would not only have to have all the main parties with us, but the public, the taxpayers, as well" because any limit would involve enhanced state funding.Mr Straw said to introduce caps "we would not only have to have all the main parties with us, but the public, the taxpayers, as well" because any limit would involve enhanced state funding.
"That is not the case at present," he said, adding that it was a "matter of great regret" that cross-party talks chaired by Sir Hayden had broken down after the Tories walked out."That is not the case at present," he said, adding that it was a "matter of great regret" that cross-party talks chaired by Sir Hayden had broken down after the Tories walked out.
The two biggest parties - Labour and the Conservatives - spent £90m in the 12 months before the 2005 general election, up from £65m in the 12 months before the 2001 poll, he said. The two biggest parties - Labour and the Conservatives - spent £90m in the 12 months before the 2005 general election, up from £65m in the 12 months before the 2001 poll.
"In the interests of democracy ... stop this damaging arms race," he said."In the interests of democracy ... stop this damaging arms race," he said.
'Restore trust''Restore trust'
The Tories said trade union donations should be included within a limit on donations while Labour wanted an end to the use of Conservative backer Lord Ashcroft's millions being targeted on marginal seats.The Tories said trade union donations should be included within a limit on donations while Labour wanted an end to the use of Conservative backer Lord Ashcroft's millions being targeted on marginal seats.
Shadow Cabinet Office Minister Francis Maude said he agreed party funding reform was "very much needed in order to restore trust in our politics to deal with the perception that large donations, whether by individuals or organisations can buy undue influence or patronage". Shadow Cabinet Office Minister Francis Maude said he agreed party funding reform was "very much needed in order to restore trust in our politics to deal with the perception that large donations, whether by individuals or organisations, can buy undue influence over policy or patronage".
However, he argued that 92% of Labour's income was from the unions.However, he argued that 92% of Labour's income was from the unions.
"It is precisely Labour's dependence on these unions bosses and the big donor culture that's preventing the reform that our politics desperately needs," he said. "It is precisely Labour's dependence on these unions bosses on the big donor culture that's preventing the reform that our politics so desperately needs," he said.
A spokesman for the Electoral Commission said it was pleased the government backed plans for it to be given wider investigative powers.
The move to cap donations is likely to be seen as an attempt to limit the influence of major donors, such as the wealthy Conservative backer Lord Ashcroft.The move to cap donations is likely to be seen as an attempt to limit the influence of major donors, such as the wealthy Conservative backer Lord Ashcroft.
In December, Prime Minister Gordon Brown pledged to push through the reforms, following revelations that gifts of more than £650,000 had been given to Labour by businessman David Abrahams using proxy donors.In December, Prime Minister Gordon Brown pledged to push through the reforms, following revelations that gifts of more than £650,000 had been given to Labour by businessman David Abrahams using proxy donors.