Have your say on political funding

Clean-up chief wants to hear from Journal readers
The Journal
by Zoe Hughes, Political Editor
zoehughes@runbox.com

The man charged with cleaning up the funding of political parties has appealed for voters across the North to make their voices heard - just days before the deadline to his contraversial review.

As the Scotland Yard investigation into cash-for-honours moves steadily closer to the heart of Government and the Prime Minister, Sir Hayden Phillips has urged Journal readers to speak out - and to say whether taxpayers should give more money to political parties.

That is one of four options being considered by the former civil servant as he attempts to end the "widespread disenchantment" with politicians following allegations over loans-for-peerages.

Sir Hayden has to report to Tony Blair by the end of the year with recommendations on the fundamental reform of party funding. However speaking to The Journal, he said it was vital the public had as much say as political parties.

"Finding a consensus on a new way forward for party funding will not be easy. The reform of party funding is not an end in itself, but a means to achieve the wider benefit of improving the quality of democracy. It would be extremely useful for me to hear from as many people as possible. I need the public's input into this review," he said. The Government backed inquiry has already put forward four scenarios for possible reform, including minimal change, increased transparency, a cap on donations and greater levels of State funding.

This could mean taxpayers matching donations to parties from individuals - which would be capped - encouraging parties to recruit more members. Or it could mean a subsidy, based on the amount of votes received.

Sir Hayden insisted he had not made up his mind before finalising his report, but he urged people to speak out before the deadline for submissions on November 20, saying reform was "central to Parliamentary democracy in this country"

The review was ordered at the height of the cash-for-honours probe by the Metropolitan Police after claims wealthy Labour backers were being rewarded with seats in the House of Lords in return for providing secret loans ahead of the last general election.

It later emerged that Labour was loaned nearly £14m and the Conservatives £16m. The Liberal Democrats said they borrowed £850,000 from three backers. Until these revelations prompted a rule change, only large donations - not commercial loans - had to be publicly disclosed. Last night Tyne Bridge MP David Clelland admitted the scandal had tainted all political parties, adding: "This has undermined whatever trust there was in politics, which recently has been very little. That is very worrying indeed for a democracy."

Although the MP said he had not made up his mind over greater public subsidy of parties, he said a move in that direction could be necessary. "I haven't made my mind up yet but it may be needed. What is essential, though, is a cap on the amount of money political parties spend on national campaigns."

Sunderland metric martyr Neil Herron warned it was vital for more "honesty and transparency" in the system insisting the distrust of politicians was now "absolute".

Anyone wanting to write to Sir Hayden Phillips should send their thoughts to Party Funding Review, 5th Floor Steel House, 11 Tothill Street, London, SW1H 9LJ or go to the review website at www.partyfundingreview.gov.uk