Written evidence received by the Parliamentary Commissioner for Standards
1. Article in Mail on Sunday, 13 January 2008
THE Tories were plunged into a party donors' row last night after it emerged that George Osborne secretly received almost £500,000 last year.
Documents obtained by The Mail on Sunday showed that the Shadow Chancellor was given money by some of Britain's richest people to help pay the costs of running his shadow ministerial office at Westminster.
A section headed 'G. Osborne's Donors wish Account' showed that donors who are worth a total of about £1.6billion used part of their wealth to bankroll Mr Osborne's activities last year.
The money comes from donations to the Conservatives which have been declared to the Electoral Commission.
The backers have requested that a specific amount is passed on to Mr Osborne.
But none of the donationschannelled from Tory coffers to the Shadow Chancellor's officehave been declared by Mr Osborne in the Register of Members' Interests as being used to pay his staff costs. Last night, Tory officials confirmed that other Shadow Cabinet ministers' offices were funded in this way.
Mr Osborne's secret donors include Lady Serena Rothschild from the famous banking family. She gave £190,000 to the Tory Party, all of which was passed on to Mr Osborne's office.
Hedge-fund entrepreneur Hugh Sloane funded the Shadow Chancellor to the tune of £125,000. Meanwhile, financier Sir John Beckwithuncle of It girl Tamara Beckwithprovided £30,000.
Harris Ventures, run by carpet magnate and Tory donor Lord Harris of Peckham, gave £100,000 last year.
In an extraordinary development, Mr Osborne last night blamed the senior Commons official in charge of the register for the secrecy.
He said that Commons Registrar told him last month that he did not need to name the seven donors.
Mr Osborne said there were emails to back up his position.
But yesterday, after this newspaper obtained the donors' names, the Shadow Chancellor said that the Registrar had now admitted she could have been wrong. 'I was told that my declarations were in order,' he said in a statement. 'The Registrar has now told us that her initial advice may have been unclear.
'These donations are to the Conservative Party, they are openly declared and we have followed the rules as they were explained to us.
'All the donations over £5,000 have been declared to the Electoral Commission and are available for all to see on their website, as the law requires.'
The Registrar declined to comment last night.
In a desperate attempt to resolve the situation, Tory Chief Whip Patrick McLoughlin has now referred the matter to the Commons' sleaze watchdog.
The dispute centres on whether the Shadow Chancellor should have made clear that the money was earmarked for his office by the donors.
Under Commons rules, MPs have to disclose the identities of donors of more than £1,000 if the gift is linked to their membership of the House and 'expressly tied to the Member by name'.
Labour MPs have accused Mr Osborne of exploiting a loophole in this rule.
Durham North MP Kevan Jones said: 'George Osborne should come clean on who is bankrolling his office.
'This is yet another example of the hypocrisy of the Tory Party, who lecture others on probity and donations yet have myriad scams disguising the true funders of their party.'
Mr Jones added that he would be writing to the parliamentary standards commissioner to demand an inquiry. The latest controversy erupted after this newspaper obtained a copy of the accounts for Mr Osborne's office. In a section headed 'Breakdown of Income and Expenditure', the seven donors are named with details of the £487,000 in contributions they made last year.
The document also showed that after the £359,000 staff costs of Mr Osborne's eight party aides were paid, there was a balance last month of £127,123.
Two of the donors listed are Cypriot-born millionaire Tony Yerolemou and his wife Barbara.
Astonishingly, Mr Osborne's office last night claimed that the couplelisted as having given £2,000should not have been included. An official said further checks had revealed that the Yerolemou family had not asked for their party donation to be channelled to Mr Osborne.
The timing of the revelations will infuriate David Cameron by drawing attention away from the donations row engulfing Labour minister Peter Hain.
And in November, Mr Osborne led the charge over Labour's illegal 'proxy' donations.
The latest row has distinct echoes of that scandal, involving David Abrahams giving money via third parties, although Mr Osborne yesterday rejected the comparison.
He insisted that 'all the donations over £5,000' had been declared to the Electoral Commission by the party.
To add to Mr Osborne's embarrassment, his colleague David Willetts has listed in the Commons Register both direct gifts and donations made indirectly 'through Conservative Central Office'.
These include one from the Shadow Chancellor's secret supporter Sir John Beckwith.
13 January 2008
2. E-mail to the Commissioner from the office of Mr Kevan Jones MP, 14 January 2008
Complaint relating to George Osborne MP
Please find attached a letter relating to the above complaint from Kevan Jones MP and John Mann MP. A hard copy has been sent in the post and Mr Osborne has been informed.
14 January 2008
3. Letter to the Commissioner from Mr Kevan Jones MP and Mr John Mann MP, 14 January 2008
You will be aware of recent articles in the press relating to the alleged failure of George Osborne MP to declare nearly £500,000 in donations to his office in his entry in the Register of Members' Interests.
We understand that Mr Osborne and the Conservative Chief Whip, Patrick McLoughlin MP, contacted the Registrar of Members' Interests for advice regarding declarations and we would be grateful if you could confirm that this is the case.
We also understand that Mr Osborne did not feel it was necessary to declare the donations because they were made to Conservative Central Office, despite the fact that it would appear the donations were specifically to meet the costs of running his office.
Mr Osborne has suggested that the reason for his failure to declare these donations is that the regulations regarding the declaration of donations are not clear. We are concerned that this should be used a defence for two reasons.
Firstly, the same justification was used to explain why House of Commons dining facilities had been used by Conservative Members for party fundraising in the last Parliament. Secondly, we note that similar donations through Conservative Central Office were declared by David Willetts MP in July 2007:
Donations have been provided through Conservative Central Office from:
Mr Peter Hall, businessman, to assist me with the employment of a senior research assistant. (Registered 17 July 2007)
Mr Charles Pugh, businessman, to assist me with the employment of an education researcher. (Registered 17 July 2007)
Mr Richard Sharp, businessman, to assist me with the employment of an education researcher. (Registered 17 July 2007)
We would therefore be grateful if you would investigate whether Mr Osborne has broken the rules of the House in not declaring nearly £500,000 in donations to his office.
Please do not hesitate to contact us if you require any clarification.
14 January 2008
4. Letter to Mr George Osborne MP from the Commissioner, 15 January 2008
I am writing to invite your comments on a complaint I have received from Mr Kevan Jones MP and Mr John Mann MP that you failed to register financial donations to your office in the Register of Members' Interests.
I attach a copy of the Members' letter of 14 January.
In essence, their complaint is that you failed to register donations to your office contrary to the relevant resolution of the House. Paragraph 16 of the Code of Conduct provides:
Members shall fulfil conscientiously the requirements of the House in respect of the registration of interests in the Register of Members' Interests and shall always draw attention to any relevant interest in any proceeding of the House or its Committees, or in any communication with Ministers, Government Departments or Executive Agencies.
Category 4 of the Guide deals with sponsorships defined as:
a) Any donation received by a Member's constituency association which is linked either to candidacy at an election or to membership of the House; and
b) any other form or financial or material support as a Member of Parliament,
amounting to more than £1,000 from a single source, whether as a single donation or as multiple donations of more than £200 during the course of a calendar year.
And paragraph 27 gives more information about what is covered by category 4b.
I should be grateful if in accordance with the procedure set out in the enclosed note, you would send me your response to this complaint from Mr Jones and Mr Mann. It would be helpful if in doing this, you could:
let me know the sources of funding for your office, i.e. direct donations; donations to you personally channelled through the Conservative Central Office; donations to your office - Shadow Chancellor - channelled through Central Office; sums received from Central Office whose provenance has not been identified; and the provision;
set out the sequence of events that led you to decide not to register the relevant donations;
let me know what information you may have received from your Whips Office or others in coming to this decision - it would be helpful to know who gave you any advice and the dates on which it was given;
let me know whether you were aware that Mr David Willets had registered donations provided through Conservative Central Office and, if so, what consideration you gave to this;
let me know how far you were aware at the time of making your decision of the source of advice on which your Whips Office were relying and whether you were aware of the specific questions that they asked in receiving this advice.
I would welcome any other comments you may wish to make.
I recognise that the Registrar of Members' Interests has been involved in giving advice to your Whips Office in relation to this matter. I should make clear that she will not be assisting me therefore with this complaint. Although I expect to invite her to give me her account of what happened.
Once I have received your response, I will consider the way forward. In the meantime if you would like to speak about the complaint at any point, please do not hesitate to contact me on the number above. In any event I look forward to receiving your response.
15 January 2008
5. Letter to Mr Kevan Jones MP and Mr John Mann MP from the Commissioner, 15 January 2008
Thank you for your joint letter of 14 January with your complaint that Mr George Osborne MP failed to register financial donations to his office in the Register of Members' Interests contrary to the relevant resolutions of the House.
I enclose a note which sets out the procedure I follow in these cases. In accordance with the procedures I am writing to Mr Osborne with a copy of your letter and inviting his response.
I will be in touch again to let you know the outcome of my inquiries.
I am copying this letter to each of your offices.
15 January 2008
6. Letter to the Commissioner from Mr George Osborne MP, 18 January 2008
Thank you for your letter of 15 January and for giving me an opportunity to respond to the specific points which you have put to me about my declaration of Members' Interests.
Let me say from the outset that I have always sought to comply fully with the rules governing the declaration of Members' Interests, as I have understood them and as they have been explained to me.
It is, of course, entirely a matter for you to decide whether you wish to proceed with a full inquiry into the complaint against me. I would only ask you to take into consideration the fact that a significant number of my colleagues in Shadow Cabinet have followed the same practice that I have, and received the same advice that I have.
It was precisely because of the more general application of the issue under investigation that Patrick McLoughlin MP, the Opposition Chief Whip, wrote to the Clerk of the Committee on Standards and Privileges on Friday 11th January asking for a clarification of the general issue of how staff employed by the Conservative Party to support Members in the exercise of their frontbench responsibilities should be registered, when donations have been made to the central Party but donors have expressed a wish as to how that money is spent.
Let me now address your specific points you put to me in your letter.
1. the sources and size of funding for my office.
There are three sources of resources for my office.
First, there are the parliamentary allowances. I use these to employ and support three members of staff who assist me in my role as a constituency MP. Ms A and Ms B both work from home. Ms C works in my office in Parliament. She also carries out general office functions such as answering the phone and keeping my diary.
Second, there is the £25,000 which I received both in April 2006 and April 2007 from Mr Simon Robertson. This money goes into a bank account entitled Office of George Osborne MP and I am the sole signatory on the account. This money is used to pay for the expenses I incur in my role as Shadow Chancellor and as the Conservative Party's General Election Co-ordinator, for example foreign travel, external consultants' fees and taxi fares. Although this money is used to support my activities as Shadow Chancellor rather than as a Member of Parliament, this money is directly received by me and controlled by me. It would not automatically be transferred to someone else if I ceased to be Shadow Chancellor. Therefore I felt it was right to declare this money to the Register of Members' Interests and to the Electoral Commissionwhich I did within the required time limits on both 28th April 2006 and 19th April 2007. From 30th January 2006 until 4th January 2007 I also received a monthly sum of £10,000 from Lord Harris of Peckham into the same bank account for the same purposes. It was not used to employ staff and it would not have been transferred to someone else if I ceased to be Shadow Chancellor. This money was also registered within the required time limits with the Register of Members' Interests and the Electoral Commission by me.
Third, there are the members of staff employed by the Conservative Party (CCHQ) and who report to me in my capacity as Shadow Chancellor and General Election Co-ordinator rather than as a Member of Parliament. There are currently six members of the CCHQ staff, on CCHQ contracts, who report directly to me. A further two staff did report to me last year but are now employed elsewhere in CCHQ.
These members of staff assist me in my duties as Shadow Chancellor, which include developing the economic policy of the Conservative Party. Further, they assist in the development of policy throughout the Party, including in education, welfare, health, and home affairs, and assist in the campaigning activities of the Party. They advise the Leader and other members of the front bench on economic and financial issues, and regularly accompany the Leader on economic and finance-related visits. They also work as advisers to, and press officers for, junior Shadow Treasury Ministers. They would continue to be employed by CCHQ if I ceased to be Shadow Chancellor or a member of the frontbench, or indeed, if I ceased to be a Member of Parliament.
Furthermore, as Election Co-ordinator all members of staff at CCHQ assist me, at my request, and report to me on specific issues. These staff are paid for by the general resources of the Conservative Party, resources provided by all the donations made to the Party.
As I understand it, four donors to the Conservative PartyLord Harris, Jeremy Isaac, Julian Schild and Sir John Beckwithexpressed a wish that their donations be used to support the activities of the Shadow Chancellor's team. These donations totalled £180,000 in the calendar year 2007. I was aware of this, although the donations were originally solicited by the Treasurers department at CCHQ. These donations were received and accepted by the Conservative Party, declared to the Electoral Commission in a timely way and banked in the party's general bank accounts, and not separated. There was no guarantee given that the money would be used to employ staff who reported to me. Within the internal accounts of the Conservative Party, these donations (along with donations to the Conservative Party from Hugh Sloane, Lady Rothschild and Mr and Mrs Yerolemou who expressed a wish to support the Shadow Cabinet in general) were recorded as being assigned to pay for the members of CCHQ staff who directly reported to me.
2. the sequence of events that led me to decide not to register the donations to CCHQ.
I have always sought to comply with the requirements of the Register of Members' Interests as I understood them and as they were explained to me.
When I joined the Shadow Cabinet in 2005 I drew a distinctionas did other members of the Shadow Cabinetbetween the financial support I received as a Member of Parliament and the staff support from CCHQ I received as a member of the Shadow Cabinet. I believed that under the terms of Category 4 of the Members' Code of Conduct I did not need to register the staff support I received as Shadow Chancellor from CCHQ or the donations that were made to the Conservative Party that were linked to the employment of that staff.
That was because:
a) the donations were received and accepted, and declared to the Electoral Commission, by the Conservative Party, not by me;
b) there was no guarantee given to the donors that their donation would be spent on CCHQ staff who reported to me;
c) the CCHQ staff were not employed by me, and
d) the CCHQ staff would continue to be employed if I ceased to be Shadow Chancellor or a Member of Parliament.
I did not believe, therefore, that the donations could be said to be indirectly supporting me in my role as a Member of Parliament, which is what Category 4(b) of the Code covers.
As I explained above, although the money received from Simon Robertson and (until 4 January 2007) from Lord Harris is used to support my role as Shadow Chancellor, because it was received by me and controlled by me I felt it was rightbecause the donations were specifically for me and would not be automatically transferred if I ceased to be a member of the frontbench that these donations should be registered both with the Register of Members' Interests and the Electoral Commission.
In drawing these various distinctions I have been guided by the general practice pursued by a number of members of the Shadow Cabinet. In December 2007 I sought the specific advice of the Opposition Chief Whip, who then spoke to the Registrar of Members' Interests. I elaborate on that advice later in this letter.
On January 11th 2008 I was told that the Mail on Sunday newspaper had obtained an internal Conservative Party spreadsheet with details about the staff who reported to me and the donations of those who had either expressed a wish to support staff reporting to me or who had expressed a wish to support staff reporting to the Shadow Cabinet. Within two hours of receiving this news I went to see the Registrar, accompanied by the Opposition Chief Whip's special adviser. I explained to the Registrar some of the issues set out above, and showed her the spreadsheet in question. I also showed her the email exchange she had had with the special adviser. The Registrar said to me that the there was an argument that support received from CCHQ should be registered, but that this was a 'grey area' and that the advice she had given had been 'unclear'.
The Registrar said that she would recommend to you that you raise it with the Committee on Standards and Privileges in order to get clarification of the rules. We discussed whether Patrick McLoughlin should do likewise.
3. awareness of David WiIletts's registered donations and consideration I gave to this.
I was not personally aware that David Willetts had registered donations to CCHQ that were linked to him until last week. The issue of how CCHQ staff who reported to Shadow Cabinet Members should be registered, and the donations that supported their employment, was raised at the Shadow Cabinet meeting I attended on 4th December 2007 as part of a general discussion on compliance with the rules.
4. what information I received from my Whips Office or others in coming to this decision.
My Chief of Staff was told by Patrick McLoughlin MP on 10th December that he had checked with the Registrar of Members' Interests about the way CCHQ staff should be registered and that my entry in the Register of Members' Interests was correct.
To help with your preliminary inquiry into the complaint against me I asked Patrick McLoughlin to provide me with a letter setting out his version of events. The account in the letter accords with my understanding at the time.
5. how far I was aware at the time of making my decision of the source of advice on which my Whips Office was relying and if I was aware of the specific questions that they asked in receiving this advice.
Mr McLoughlin's letter sets out the version of events as I also recall them. I was aware that he had spoken to the Registrar of Members' Interests. I was aware that he had covered a number of different issues with her. I believed that among those issues was the issue of how to register CCHQ staff who reported to me, and the donations to CCHQ that helped support their employment.
I enclose a copy of Patrick McLoughlin's letter and a copy of the internal CCHQ spreadsheet that was seen by the Mail on Sunday.
It goes without saying that I wish to co-operate fully with your preliminary inquiry and would be happy to provide any further information you require, or come to see you to clarify any issues you have.
18 January 2008
7. Letter to Mr George Osborne MP from the Opposition Chief Whip, 17 January 2008
You have shown me a copy of John Lyon's letter dated 15th January 2008, and I hope that this will help with the final two bullet points made on the second page.
Let me know what information you may have received from your Whips Office or others in coming to this decisionit would be helpful to know who gave you any advice and the dates on which it was given.
As Chief Whip, I issue advice to every frontbencher which states that "we must ensure that we abide scrupulously by the rules of the House relating to the registration and declaration of outside interests". Members are also advised to consult the Members' Code of Conduct [See Appendix 1].
My understanding in relation to donations made to Conservative Campaign Headquarters (CCHQ), is that the only possible category which these might fall under has been Category 4 as detailed in the Code of Conduct.
Paragraph 26 of the Code explicitly stated that "Category 4(a) deals with financial contributions to constituency associations" [italics as in the Code].
Paragraph 27 states that "Category 4(b) covers support from which the Member receives any financial or material benefit in support of his or her role as a Member of Parliament". Donations which are made to CCHQ and linked to frontbench roles rather than to Members of Parliament were thought to fall outside of this category, especially when they fund CCHQ staff on CCHQ contracts who are assigned to support the position rather than a particular member.
I therefore understood that donations to CCHQ did not need to be declared in the Register. I have always been clear that donations directly to Shadow Cabinet members for their own use and direction must be declared. This explains, for example, David Willetts declaration of support in the register and indeed your declaration of support from Simon Robertson.
I was confident that all of our arrangements were in order, including yours. However, following a series of news stories in late 2007, at the weekly Shadow Cabinet meeting on Tuesday 4th December I was asked to check that all Shadow Cabinet arrangements with (a) the Register of Members' Interests and (b) the Electoral Commission were indeed in order.
Given the complexity of the rules, it was thought prudent to make sure everyone understood these thoroughly.
I, and my special adviser, therefore met informally with the Registrar for Members' interests, on the afternoon of Wednesday 5th December. We discussed the differences between, and requirements of, the Register of Members' Interests and the Electoral Commission, and I asked the Registrar to provide a note on where the declarations overlapped. She did so by email on Thursday 6th December. [See Appendix 2]
My special adviser followed up this note with a call on the morning of Friday 7th December. She asked the Registrar whether the distinction the Electoral Commission made of donations to an MP as an office holder rather than to the MP as his or herself, also held for the Register of Members' interests. She was informed that if a donation to a constituency association was "linked by name" it should be declared. When asked whether the same would apply for a donation made to Conservative central office and "linked" in any way to a frontbencher, The Registrar said the rules were likely to be the same but it depended on the nature of the donation. Immediately after this conversation, the Registrar emailed my special adviser stating:
"I think I misled you just now. The register deals with donations to a member's constituency association and not to central offices. Sorry." [See Appendix 3]
On Monday 10th December I, and my special adviser, met with George Osborne's Chief of Staff, as well as the Chief of Staff to David Cameron. I outlined the advice I had received, and confirmed that the way in which the donations had been recorded was indeed correct.
Let me know how far you were aware at the time of making your decision of the source of advice on which your Whips' Office were relying and whether you were aware of the specific questions that they asked in receiving this advice.
When I was asked at the weekly Shadow Cabinet meeting on Tuesday 4th December to check what needed to be registered with (a) the Register of Members' Interests and (b) the Electoral Commission, I notified the Shadow Cabinet that I intended to speak to the Registrar of Members' Interests.
Subsequently on Monday l0th December, I was able to tell George Osborne's Chief of Staff and the Chief of Staff to David Cameron that I had met with the Registrar, and that the advice I had received confirmed that the donations were in order.
17 January 2008
8. Shadow Ministerial Guidance on the Registration of Interests
Text from the Shadow Ministerial guidance regarding registration of interests. This advice was cleared by the Office of the Parliamentary Commissioner for Standards some time ago.
REGISTRATION OF INTERESTS
We must ensure that we abide scrupulously by the rules of the House relating to the registration and declaration of outside interests. In particular, no Shadow Minister should profit from, or be capable of being portrayed as profiting from, their Shadow Ministerial position.
Subject to the conditions laid out in, and strict adherence to, the Code of Conduct 2005, the accompanying Guide (HC 351), and the 9th Report of the Committee on Standards and Privileges of Session 2001-02, Shadow Ministers are permitted to have outside interests.
The advice that is given to Members at present is that fees under 1 per cent of a Member's salary (currently £600) do not have to be registered unless the Member believes that not to register would not be upholding the general purpose of the Register. The Committee on Standards and Privileges has deprecated the registration (other than in exceptional circumstances) of interests which are not required to be registered.
Fees from a single source that amount (either individually or cumulatively in the course of a calendar year) to more than 1 per cent of a Member's salary (currently £600) should be registered as soon as they reach that threshold. The entry in the Register should specify the source of the payment and, if the Member is providing services in their capacity as a Member of Parliament, the amount by £5,000 band.
If a Shadow Minister is providing services in their capacity as a Member of Parliament, an agreement for the provision of services should be deposited with the Registrar for public inspection. This should include the words: 'We do not expect x to engage in any form of advocacy as defined in the Resolution of the House of Commons of 6 November 1995' [or a similar phrase]. This requirement does not apply in respect of work for the media or speaking engagements.
Where a Member is a director of, or employed by, a company and personally provides to clients of that company, either directly or indirectly, services which depend essentially on, or arise out of, the Member's position as a Member of Parliament, the names of those clients, together with the nature of their business, should be listed under Category 3 as being clients of the company. The company itself should be registered under Category 1 or Category 2 as set out above.
Shadow Ministers must take particular care to conform to the expectations and requirements of the House in disclosing interests and must avoid any conflict of interest between their Shadow Ministerial responsibilities and activities outside Parliament.
There are exceptions to this, which include the Shadow Law Officers, but the rules are in place to avoid accusations of advocacy in favour of a personal commercial interest (see Guide to the Rules, paragraphs 71 to 82) and should be regarded seriously. The Shadow Law Officers are, nonetheless, reminded that they should register an interest if they continue to practice at the Bar and they should consider doing so even if they are not currently practicing.
When taking part in debates in the House of Commons, attending meetings or engaging in correspondence with other Members or officials, Shadow Ministers should orally declare any relevant pecuniary interest, whether or not it is required to be registered and whether it is direct or indirect, current, immediately past, or expected.
In addition to complying with the requirements of the House so far as the registration and declaration of interests are concerned, Shadow Ministers should notify the Deputy Chief Whip of any new interest that needs to be registered and, if in doubt, his advice should be sought prior to taking on any new interest.
Shadow Ministers should take particular care to ensure that any relevant interest is declared on any Motion, Amendment, Prayer or Parliamentary Question that you table yourself or that is tabled on your behalf. This includes applications for Urgent Questions, daily or Westminster Hall adjournment debates, or SO24 debates. If your name is to appear on any Motion, Amendment or Prayer to be tabled by the Chief Whip's Office, you will be informed and asked if you have any interest that should be declared.
If in any doubt about the practical application of these rules, the Registrar of Members' Interests is always available to Members for consultation and advice on any point of interpretation of the rules of the House.
Acceptance of fees for broadcasting, speaking engagements and articles
Shadow Ministers should not solicit fees for broadcasting, speaking engagements and articles. Fees should not be accepted if the subject matter relates directly to your Shadow Ministerial responsibilities.
Fees may be accepted for speeches, broadcasts, articles, etc on subjects not related to your Shadow Ministerial responsibility, although the usual conventions about consulting the relevant Shadow Minister and the rules of the House regarding the declaration of interests still apply.
9. E-mail to the office of the Opposition Chief Whip from the Registrar of Members' Interests, 6 December 2007
I promised Mr McLoughlin written confirmation of the areas of interest where Members must register both with me and also, under the Political Parties, Elections and Referendums Act 2000 (PPERA), with the Electoral Commission.
I hope the following brief summary will be helpful, but Mr McLoughlin might also like to consult the Electoral Commission for more detail.
The Electoral Commission is interested in 'political donations'. Benefits personal to the Member (e.g.tickets to sporting events) are not of interest to them.
The areas of overlap are concentrated in Categories 4 (Sponsorship) and 6 (Overseas visits). In the case of the latter, their threshold is higher than oursthey do not require the registration of visits worth £1000 or less.
There are also a few interests which we register under Category 5 (Gifts, benefits and hospitality (UK)) which are regarded by the Commission as political donations which need to be registered with them if they are worth more than £1000car parking passes or web-site design (if worth more than £1000) are examples of these.
Under PPERA, it is the responsibility of the Member to report appropriately to the Electoral Commission. It has recently become the practice of this office to advise Members to consult the Commission if it appears to us that an interest should be registered with them, but I must emphasise that this is a purely informal arrangement and does not absolve Members from the responsibility for being aware of, and complying with, their obligations under the Act. Nor can this office advise, except in general terms, about the requirements of the Act.
This office and the Committee on Standards and Privileges are aware of some dissatisfaction among Members that they have to register the same interest twice. The Electoral Administration Act 2006 opens up the possibility of a 'one-stop shop' for reporting where the requirements overlap, and it is hoped that the House will, before too long, be given the opportunity to consider the implications of such a system and decide whether it wishes to implement it.
I hope this helps
6 December 2007
10. E-mail to the office of the Opposition Chief Whip from the Registrar of Members' Interests, 7 December 2007
Donations
I think I misled you just now. The register deals with donations to a member's constituency association and not to central offices. Sorry.
7 December 2007
11. Mr George Osborne's Donors wish Account
G. Osborne's Donors wish Account
|
Donors wish income raised as at Dec 07 |
|
|
487,000.00 |
|
Less
Staff Cost as at Dec 07 |
|
|
|
-359,876.49 |
|
Bal as at Dec 07 |
|
|
|
127,123.51 |
| |
|
|
|
|
|
Forecast 2008
Funds b/fwd to 2008 |
|
|
|
127,123.51 |
|
Add
Harris Venture DD 4 mnths |
|
|
|
40,000.00 |
| |
|
|
|
167,123.51 |
|
Less Staff cost in 2008 Jan - Apr 08 |
|
|
|
|
Jan-08 |
|
- |
|
28,388.74 |
|
Feb-08 |
|
- |
|
28,388.74 |
|
Mar-08 |
|
- |
|
28,388.74 |
|
Apr-08 |
|
- |
|
28,388.74 |
|
May-08 |
|
- |
|
28,388.74 |
| |
|
- |
|
141,943.70 |
| |
|
|
|
|
|
Funds left as at May 08 |
|
|
|
25,179.81 |
Extract from breakdown of Income and Expenditure
|
Total |
|
|
Staff |
|
|
|
|
|
|
|
|
|
Donors
|
|
Cabinet Office |
|
|
|
|
|
|
AP & Mrs B Yerolemou |
S Rothschild |
Mr J Schild |
Mr J Isaac |
John Beckwith |
Hugo Sloane |
Harris Venture |
|
G Osborne |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65,704.73 |
|
|
|
|
|
|
|
|
|
|
25,000.00 |
|
|
|
|
|
12,619.04 |
|
|
|
|
|
|
|
|
|
|
25,000.00 |
|
|
- |
Jan -07 |
|
7,619.04 |
|
|
|
|
|
|
|
20,000.00 |
|
|
|
10,000.00 |
|
- |
Feb-07 |
|
1,522.04 |
|
|
|
|
|
2,000.00 |
|
|
|
|
|
10,000.00 |
|
- |
Mar-07 |
|
16,199.34 |
|
|
|
|
|
|
|
|
|
30,000.00 |
|
10,000.00 |
|
- |
Apr-07 |
|
8,853.61 |
|
|
|
|
|
|
|
|
20,000.00 |
|
|
10,000.00 |
|
- |
May-07 |
|
10,872.24 |
|
|
|
|
|
|
|
|
|
|
|
10,000.00 |
|
- |
Jun-07 |
|
11,260.33 |
|
|
|
|
|
|
|
|
|
|
|
10,000.00 |
|
- |
Jul-07 |
|
11,062.53 |
|
|
|
|
|
|
|
|
|
|
|
10,000.00 |
|
- |
Aug-07 |
|
171,006.17 |
|
|
|
|
|
|
190,000.00 |
|
|
|
|
10,000.00 |
|
- |
Sep-07 |
|
26,973.66 |
|
|
|
|
|
|
|
|
|
|
|
10,000.00 |
|
- |
Oct-07 |
|
56,611.26 |
|
|
|
|
|
|
|
|
|
|
75,000.00 |
10,000.00 |
|
- |
Nov-07 |
|
18,388.74 |
|
|
|
|
|
|
|
|
|
|
|
10,000.00 |
|
- |
Dec-07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
127,123.51 |
|
359,876.49 |
|
|
487,000.00 |
2,000.00 |
190,000.00 |
20,000.00 |
20,000.00 |
30,000.00 |
125,000.00 |
100,000.00 |
|
|
TOTAL |
12. Letter to the Registrar of Members' Interests from the Commissioner, 22 January 2008
I am writing to invite your comments on a complaint I have received from Mr Kevan Jones MP and Mr John Mann MP that Mr George Osborne MP failed to register financial donations to his office in the Register of Members' Interests.
The essence of the complaint against Mr Osborne is that he failed to register donations made by identifiable donors to Conservative Central Office which were used specifically to meet the costs of running his Shadow Chancellor's office. The question is whether such a failure is contrary to paragraph 4b of the Rules. I attach a copy of the letter.
I sought a response from Mr Osborne. I enclose a copy of his reply together with the attachments he sent me.
In essence, Mr Osborne believes the donations in question were not registrable under the rules because:
a) the donations were received and accepted, and declared to the Electoral Commission, by the Conservative Party, not by him;
b) there was no guarantee given to the donors that their donation would be spent on CCHQ staff who reported to him;
c) the CCHQ staff were not employed by him; and
d) the CCHQ staff would continue to be employed if he ceased to be Shadow Chancellor or a Member of Parliament.
He does not consider that the donations could be said to be indirectly supporting his role as a Member of Parliament and so were not registrable under Category 4b of the Code.
He notes that the Opposition Chief Whip's office had consulted you in December which concluded with your e-mail of 7 December 2007 and that in a meeting on 11 January 2008 you accepted that the advice you had given had been unclear.
I would be grateful if in accordance with the procedures set out in the enclosed note, you could assist me in my consideration of this complaint. In particular:
a) could you let me have your account of any exchanges you had with the Opposition Whips' Office and Mr Osborne on the registration of donations to Opposition spokespersons' offices? I would welcome copies of any contemporaneous notes you may have made, e-mails or other written exchanges;
b) in preparing this account, could you let me know the questions which you believed you were being asked and the relevance of the replies you provided, together with any notes you may have to substantiate your recollection;
c) I would welcome your view on the application of the Code and Rules to the situation described in Mr Osborne's letter in respect of donations to Mr Osborne's office;
d) could you let me know if you are aware of any material supplementary to the Guide - either in advice notes or in documents published by the Committee on Standards and Privileges which address this situation;
e) could you let me know whether you are aware of any previous approaches for advice in a similar situation from any Member of Parliament or party represented in Parliament on the same or similar donation issues. In particular, could you let me know if you were involved in the process which led to Mr David Willetts MP registering donations he received through Conservative Central Office in the Register of Members' Interests and, if so, the sequence of events as they involved you.
f) could you let me know what is your understanding of the application of the current Code and Rules to this issue; what information or exchanges you had which reflect your understanding; whether you believe there are issues which need clarification, and if so, what recommendations you may have for achieving this.
I would welcome any other comments you may wish to make.
22 January 2008
13. Letter to Mr George Osborne MP from the Commissioner, 22 January 2008
Thank you for your letter of 18 January with your response to my letter to you of 15 January following up the complaint from Mr Kevan Jones and Mr John Mann. I was grateful to you for sending me this response and for doing it so speedily.
Before coming to a view on the way forward, I have decided that I would like to take the view of the Registrar of Members' Interest as intimated in my letter to you of 15 January. In particular, I would like her advice on her understanding of the current policy and her perception of the nature of the exchanges she had with you and with the Chief Whip's office.
I will be back in touch when I have received and considered her reply.
22 January 2008
14. Letter to the Commissioner from Mr Peter Ainsworth MP, 24 January 2008
I understand that you are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office, when donations have been made to the central party but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from Conservative Campaign Headquarters for their Shadow Cabinet work on a similar basis.
I thought it might therefore be helpful if I made you aware of the position with regard to my own office.
In my capacity as Shadow Secretary of State for Environment, Food and Rural Affairs, my Opposition team receives financial support from Conservative Campaign Headquarters. In my case, CCHQ has informed me that it has received donations of more than £1,000 intended for this purpose from Mr Peter Hall, a businessman. These have helped to provide staff who support the Shadow Defra team in carrying out our Frontbench responsibilities.
The funds concerned would continue to be deployed on the Defra portfolio if I left the Frontbench. To illustrate this point, Peter Hall was introduced by my predecessor in the Defra role (although he made no payment until after I had taken up my present responsibilities).
The donations were received and accepted by the Conservative Party, declared to the Electoral Commission as a donation to the Party if more than £5,000, and banked in the Party's general bank account. This support helps my team fulfil their Frontbench roles, and does not support me in my role as a Member of Parliament.
I should make clear that I have always endeavoured to comply with the rules governing the registration of Members' Interests as I have understood them. But should you decide that further declarations are necessary, I would of course fully comply with your guidance.
I would be very happy to talk to you about the support my team receives from CCHQ if this would be helpful, and to provide further information or clarification if you need it.
24 January 2008
15. Letter to the Commissioner from Rt Hon David Davis MP, 24 January 2008
I understand that you are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office, when donations have been made to the Central Party, but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from Conservative Campaign Headquarters for their Shadow Cabinet offices on a similar basis.
I thought it might, therefore, be helpful if I made you aware of the position with regard to my own office.
In my capacity as Shadow Home Secretary my office receives financial support from Conservative Campaign Headquarters. In my case, CCHQ has informed me that it has applied the following donations of more than one thousand pounds (£1000.00) for this purpose:
Harris Ventures Limited, Philip Harris House, IA Spur Road, Orpington, Kent
BR6 OPH (November 2006, December 2006, January - November 2007)
Midlands Industrial Council, 3 High Street, Bassingham, Lincs LN5 9JZ
(November 2007)
These donations help provide staff who support me in carrying out my Front Bench responsibilities. These staff would continue to be employed on that Portfolio if I left the Front Bench or moved to another responsibility. They provide support to the Party more generally on Home Office matters, including the Leader's office and other members of the Home Office team.
The first of these donations, from Harris Ventures Limited, was raised by the Party Treasurer's Department in order to help fund my office. I was not party to the raising of this money, my involvement being confined to writing a letter of thanks after the money had been raised.
It was my understanding that such donations, and the staff support that they paid for, did not require declaration under the Members' Code of Conduct, but were properly included in the amounts declared by the Party to the Electoral Commission. The donation received from the Midlands Industrial Council in November 2007 will be included in the Conservative Party's next quarterly report to the Electoral Commission, which is due by 30 January 2008.
In autumn 2007, I was asked by the Party Treasurer's Department to approach the Midlands Industrial Council to provide financial support to fund staff in my office. This I did, which led to the donation of forty thousand pounds (£40,000.00).
However, since I had myself been involved in raising the money, I decided to enter this donation with the Members' Registerabove and beyond the normal requirement, as I understood it.
I should make clear that I have always endeavoured to comply with the rules governing the registration of Members' interests as I have understood them, but should you decide that further declarations are necessary, it goes without saying that I would fully comply with your guidance.
I would be happy to talk to you about the support my office receives from CCHQ if this would be helpful and to provide further information or clarification if you need it.
24 January 2008
16. Letter to the Commissioner from Mr Alan Duncan MP, 25 January 2008
I understand that you are looking at the question of how George Osborne should declare the financial support he has received through Conservative Campaign Headquarters for the Shadow Chancellor's office, where donations have been made to the central party but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from Conservative Campaign Headquarters for their Shadow Cabinet offices.
I thought it might therefore be helpful if I made you aware of the position in my own office.
In my capacity as Shadow Secretary of State for Business my office receives financial support from Conservative Campaign Headquarters. In my case CCHQ has informed me that it has allocated part of a donation of more than £1,000 for this purpose. It was a donation from:
Mr Ian Taylor [...]
This donation helps provide one member of staff who supports me in carrying out my frontbench responsibilities. The donation was received and accepted by the Conservative Party, declared to the Electoral Commission as a donation to the Party as it was more than £5,000, and banked in the Party's general bank account. This support helps me fulfil my frontbench role, and does not support me in my role as a Member of Parliament.
I should make clear that I have always endeavoured to comply with the rules governing the registration of Members' Interests as I have understood them. But should you decide that further declarations are necessary, I would of course fully comply with your guidance.
I would be very happy to talk to you about the support my office receives from CCHQ if this would be helpful, and to provide further information or clarification if you need it.
25 January 2008
17. Letter to the Commissioner from Mr Michael Gove MP, 23 January 2008
I understand that you are looking at the question of how George Osborne MP should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office, when donations have been made to the central party but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from Conservative Campaign Headquarters for their Shadow Cabinet offices on a similar basis.
I thought it might therefore be helpful if I made you aware of the position with regard to my own office.
In my capacity as Shadow Secretary of State for Children, Schools and Families my office receives financial support from Conservative Campaign Headquarters. In my case, CCHQ has informed me that it has applied the following donations of more than £1,000 for this purpose:
Mr. Hilton Nathanson
[...]
13th November 2007
Mr George E.S. Robinson
[...]
28th November 2007
Mr. Edmund Lazarus
[...]
4th December 2007
Mr. Mark Florman
[...]
17th December 2007
Mr. Romie Tager QC
[...]
18th December 2007
Mr. Alan Jacobs
[...]
18th December 2007
Mr. Adrian Beecroft [...]
[...]
21st December 2007
These donations help provide staff who support me in carrying out my Frontbench responsibilities. The donations were received and accepted by the Conservative Party, declared to the Electoral Commission as a donation to the Party if more than £5,000, and banked in the Party's general bank account. This support helps me fulfil my Frontbench role, and does not support me in my role as a Member of Parliament.
The donors listed above were kind enough to give money to the Party following two events which were organised to discuss the Party's education policy at which I spoke. Following the events the individuals concerned contacted the Party's Treasurers' Department expressing a wish to support the Party with donations which they hoped would help the work of policy development in education. I have listed the days on which the cheques were received which all fell within the last six weeks of last year.
I should add that in my previous role as Shadow Housing Spokesman, I talked to a variety of individuals about Conservative housing policy. Some of them expressed an interest in supporting policy development in this area. I understand they were kind enough to donate to the Party following my move from the Housing portfolio to shadow the Department of Children, Schools and Families. I do not know the identities of all those who did donate but it is my understanding that this was another example of individuals expressing a wish which was not tied to a specific personality but rather to a broader policy development goal.
I should make clear that I have always endeavoured to comply with the rules governing the Registration of Members' Interests as I have understood them. But should you decide that further declarations are necessary, I would of course fully comply with your guidance.
I would be very happy to talk to you about the support my office receives from CCHQ if this would be helpful, and to provide further information or clarification if you need it.
23 January 2008
18. Letter to the Commissioner from Rt Hon William Hague MP, 24 January 2008
I know you are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office, when donations have been made to the central party but donors have expressed a wish as to how that money is spent.
I would like to inform you of the position with regard to my own office.
In my capacity as Shadow Foreign Secretary my office receives financial support from Conservative Campaign Headquarters. In my case, CCHQ has informed me that it has applied the following donation of more than £1,000 for this purpose:
Mr Alan Morgan [...]
This donation helps provide one member of staff who supports me in carrying out my Frontbench responsibilities. That member of staff would continue to be employed on foreign affairs if I left the Frontbench. The donation was received and accepted by the Conservative Party, declared to the Electoral Commission as a donation to the Party of more than £5,000, and banked in the Party's general bank account. This support helps me fulfil my Frontbench role, and does not support me in my role as a Member of Parliament
I have always declared other donations when they have come directly to my office. Should you decide that further declarations are necessary, I would of course comply fully with your guidance.
Please let me know of any guidance on the matter, or if you need any further information.
24 January 2008
19. Letter to the Commissioner from Mr Jeremy Hunt MP, 22 January 2008
I understand that you are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office, when donations have been made to the central party but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from Conservative Campaign Headquarters for their Shadow Cabinet offices on a similar basis.
I thought it might therefore be helpful if I made you aware of the position with regard to my own office.
In my capacity as Shadow Secretary of State for Culture, Media and Sport, my office receives support from Conservative Campaign Headquarters. In my case, CCHQ has informed me that it has applied the following donations of more than £1,000 for this purpose:
Mr John Lewis [...];
Mr Peter Hall [...].
Additionally I receive support from CCHQ through the provision of a press officer and a research officer.
The donations were raised by Hugo Swire MP, who previously held the post of Shadow Secretary of State for Culture, Media and Sport, in order to help support his role as a Shadow Cabinet member. I inherited that support when I took over as Shadow Secretary of State in July 2007, which I trust makes it clear that it was always intended and used as support for a frontbench role rather than support for the parliamentary work of a particular individual.
The donations are not for use in my role as a constituency MP.
The donations were received and accepted by the Conservative Party, declared to the Electoral Commission as a donation to the Party if more than £5,000, and banked in the Party's general bank account.
I should make clear that I have always endeavoured to comply with the rules governing the registration of Members' Interests as I have understood them. But should you decide that further declarations are necessary, I would of course fully comply with your guidance.
I would be very happy to talk to you about the support my office receives from CCHQ if this would be helpful, and to provide further information or clarification if you need it.
22 January 2007
20. Letter to the Commissioner from Mr Andrew Lansley MP, 23 January 2008
You are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters (CCHQ) towards the Shadow Chancellor's office, when donations have been made to the central party but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from CCHQ for their Shadow Cabinet offices on a similar basis.
I thought it might therefore be helpful if I made you aware of the position with regard to my own office. In my capacity as Shadow Secretary of State for Health, my office receives financial support from CCHQ. In my case, CCHQ has informed me that it has applied the following donations of more than £1,000 for this purpose:
Mr Andrew Scott, [...] November 2007.
London Secure Services Limited (Kenwood House, 1 Upper Grosvenor Road, Tunbridge Wells, Kent, TN1 2EL) September 2006-December 2007.
Mr Julian Schild, [...] July 2006-November 2007.
These donations help provide staff who support me in carrying out my Frontbench responsibilities. These staff would continue to be employed on that portfolio if I left the Frontbench. The donations were received and accepted by the Conservative Party and banked in the Party's general bank account. This support helps me fulfil my Frontbench role, and does not support me in my role as Member of Parliament.
I would like to add that I did not solicit money, and I did not receive it. Except for two lunches organised by the Treasurer's Department at CCHQ, I have neither had a conversation with a donor nor have I received any correspondence from them. At neither lunch, when I was present, was the issue of donations discussed with me, nor was I involved in the follow-up work which is managed by the Treasurer's Department.
I should make clear that I have always endeavoured to comply with the rules governing the registration of Members' Interests as I have understood them. But should you decide that further declarations are necessary, I would of course fully comply with your guidance.
I would be very happy to talk to you about the support my office receives from CCHQ if this would be helpful, and to provide further information or clarification if you need it.
23 January 2008
21. Letter to the Commissioner from Rt Hon Francis Maude MP, 24 January 2008
I understand that you are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office, when donations have been made to the central party but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from Conservative Campaign Headquarters for their Shadow Cabinet offices on a similar basis.
I thought it might therefore be helpful if I made you aware of the position with regard to my own office.
In my capacity as Shadow Minister for the Cabinet Office my office receives financial support from Conservative Campaign Headquarters. In my case, CCHQ has informed me that it has applied a donation by John Coldman of more than £1,000 for this purpose. This donation was made in December 2007. I have known John Coldman for many years, and have been involved with soliciting donations from him previously, which have previously been donations to the party without any expressed wish for the funds to be applied in any particular way. In this instance he made a donation similar in size to his last donation, but in this instance we agreed that he would ask for half the donation to be used to support my office.
This donation helps provide a member of staff who supports me in carrying out my Frontbench responsibilities. The donation was received and accepted by the Conservative Party, declared to the Electoral Commission as a donation to the Party, and banked in the Party's general bank account. This support helps me fulfil my Frontbench role, and does not support me in my role as a Member of Parliament.
It is worth pointing out that in 1998 when I was Shadow Chancellor CCHQ employed several members of staff who were attached to my office, whose costs were supported by donors who had expressed a wish that the funds should be applied in this way. This of course predated PPERA and the Electoral Commission, so there was no statutory requirement to declare general donations. My recollection is that we were advised at the time that it was not necessary to register these donations in the House of Commons Register as they were donations to the party centrally in order to support staff employed by the party centrally.
I should make clear that I have always endeavoured to comply with the rules governing the registration of Members' Interests as I have understood them. But should you decide that further declarations are necessary, I would of course fully comply with your guidance.
I would be very happy to talk to you about the support my office receives from CCHQ if this would be helpful, and to provide further information or clarification if you need it.
24 January 2008
22. Letter to the Commissioner from Mr Grant Shapps MP, 23 January 2008
I understand that you are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office, when donations have been made to the central party but donors have expressed a wish as to how that money is spent.
As you are aware, a number of other members of the Shadow Cabinet receive funding from Conservative Campaign Headquarters for their Shadow Cabinet offices on a similar basis.
I thought it might therefore be helpful if I made you aware of the position with regard to my own office.
In my capacity as Shadow Housing Minister, my office receives financial support from Conservative Campaign Headquarters. In my case, CCHQ has informed me that it has applied the following donations of more than £1,000 for this purpose:
Charcol Ltd (2nd Floor, Chancery House, 53-64 Chancery Ln, London, WC2A 1QU) June 2007.
Goldsmith Williams Ltd (Mersey Chambers, 5 Old Churchyard, Liverpool, L2 8TX) June 2007.
Douglas & Gordon Ltd (67-68 Warwick Sq, London, SW1V 2AR) June 2007.
The Carling Partnership Ltd (35 Paul St, London, EC2A 4UQ) July 2007.
Sapcote Group plc (87 Camden St, Birmingham, W Midlands, B1 3DE) July 2007.
Edeus Creators Ltd (2 Charter Ct, Wolverhampton Business Pk, Wolverhampton, WVlO 6TB) July 2007.
These donations help provide staff who support me in carrying out my Frontbench responsibilities.
In my case the arrangement commenced with Michael Gove, as the previous incumbent in my role and the funding from CCHQ followed the portfolio when I became Shadow Minister.
The donations were received and accepted by the Conservative Party and declared to the Electoral Commission as a donation to the Party if more than £5,000, and banked in the Party's general bank account. This support helps me fulfil my Frontbench role, rather than my role as a Member of Parliament.
I should make it clear that I have always endeavoured to comply with the rules governing the registration of Members' Interests as I have understood them. But should you decide that further declarations are necessary, I would of course fully comply with your guidance.
I would be very happy to talk to you about the support my office receives from CCHQ if this would be helpful, and to provide further information or clarification if you need it.
23 January 2008
23. Letter to the Commissioner from Mrs Theresa Villiers MP, 23 January 2008
I understand that you are looking at the question of how George Osborne should declare financial support he has received through Conservative Campaign Headquarters towards the Shadow Chancellor's office when donations have been made to the central party but donors have expressed a wish as to how the money is spent.
As you are aware, a number of Shadow Cabinet Members receive funding from Conservative Campaign Headquarters on a similar basis.
I thought it might therefore be helpful if I made you aware of the position with regard to my own office.
In my capacity as Shadow Secretary of State for Transport, my office receives financial support from Conservative Campaign Headquarters. In my case, CCHQ has confirmed that it has applied the following donations of more than £1000 for this purpose:
Molyneaux Management Services Ltd
(Catherine House, 76 Gloucester Place, London, WlU 6HJ)
May 2006 and March 2007
Patrick Evershed
[...]
October 2006
Edward Lee
[...]
December 2006
David Macmillan
[...]
September 2007
Hilton Nathanson
[...]
October 2007
These donations help provide staff who support me in carrying out my front bench responsibilities and who moved with me from my previous role as Shadow Chief Secretary to the Treasury. They have also been used to cover some other expenses related to my attendance at the Conservative Party Conference October in 2007 (and staff related expenses at the conference). The donations were received and accepted by Conservative Campaign Headquarters (though in a number of instances, cheques payable to the Conservative Party were sent first to me and I forwarded them on to CCHQ). These donations were declared to the Electoral Commission as a donation to the Party if more than £5000 and banked in the Party's general bank account. This support helps me fulfil my frontbench role and does not support me in my role as Member of Parliament.
In most instances, I assisted in raising the money, in particular by attending and helping to organize a number of dinner discussions.
I should make clear that I have always endeavoured to comply with the rules governing the register of Members' Interests as I have understood them. But should you decide further declarations are necessary, I would of course fully comply with your guidance.
I would be happy to talk to you about the support my office receives from CCHQ if this would be helpful and to provide further information or clarification if you need it.
23 January 2008
24. Letter to Mr Peter Ainsworth MP from the Commissioner, 5 February 2008
Thank you for your letter of 24 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
For completeness, it would be helpful to know the date or dates of the contributions made for the benefit of your Shadow Office by Mr Peter Hall.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donor before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
25. Letter to Rt Hon David Davis MP from the Commissioner, 5 February 2008
Thank you for your letter of 24 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donors before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
26. Letter to Mr Alan Duncan MP from the Commissioner, 5 February 2008
Thank you for your letter of 25 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donor before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
27. Letter to Mr Michael Gove MP from the Commissioner, 5 February 2008
Thank you for your letter of 23 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donors before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
28. Letter to Rt Hon William Hague MP from the Commissioner, 5 February 2008
Thank you for your letter of 24 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donor before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
29. Letter to Mr Jeremy Hunt MP from the Commissioner, 5 February 2008
Thank you for your letter of 22 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
For completeness, it would be helpful to know the date or dates of the contributions made for the benefit of your Shadow Office by Mr John Lewis and Mr Peter Hall.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donors before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
30. Letter to Mr Andrew Lansley MP from the Commissioner, 5 February 2008
Thank you for your letter of 23 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donors before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
31. Letter to Rt Hon Francis Maude MP from the Commissioner, 5 February 2008
Thank you for your letter of 24 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donor before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
32. Letter to Mr Grant Shapps MP from the Commissioner, 5 February 2008
Thank you for your letter of 23 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donors before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
33. Letter to Mrs Theresa Villiers MP from the Commissioner, 5 February 2008
Thank you for your letter of 23 January informing me of the donations you have received through Conservative campaign headquarters towards the running of your office in respect of your Shadow Ministerial responsibilities.
I was grateful to receive this. As you know, I am considering this issue in the context of a complaint I have received about Mr George Osborne's registration of such donations. My conclusions on that complaint will, I hope, help to resolve the position in respect of registering such donations in the Register of Members' Interests.
Finally, it might be helpful for my current inquiries if you could confirm whether you knew the identity of your donors before the complaint against Mr Osborne became public knowledge on 13 January this year.
Should you wish to have a word about any of this at this stage, please do not hesitate to contact me or to give me a telephone call.
5 February 2008
34. Letter to the Commissioner from Mr Peter Ainsworth MP, 11 February 2008
Thank you for your letter of 5 February, and please forgive the delay in this response.
Peter Hall has made two donations: the first was made in March 2006 and the second in May 2007.
I was aware of the donor's identity before 13 January this year. As mentioned in my previous letter, Mr Hall made his intention to donate to the Conservative Party known to my predecessor as Shadow Secretary of State for Defra.
I hope that this information is helpful.
11 February 2008
35. Letter to the Commissioner from Rt Hon David Davis MP, 6 February 2008
Thank you for your letter of 5 February 2008.
I thought I had explained this in my previous letter. For the avoidance of doubt, I can confirm that I knew the identities of the donors before the complaint was made against Mr Osborne and, in the case of the MIC, the donation was declared before the complaint.
6 February 2008
36. Note of telephone conversation between the Commissioner and Mr Alan Duncan MP, 6 February 2008
I thought it would be helpful to set down the main points you made when we spoke on the telephone on 6 February in response to my letter to you of 5 February.
I asked whether you knew the identity of your donor. You said that the position was:
you had known the donor for over 30 years;
you had encouraged him to donate to Conservative Central Office;
you had asked Conservative Campaign Headquarters for some financial support for your office, and that had been provided;
until the current inquiries in respect of Mr George Osborne, you had no knowledge that Mr Ian Taylor was seen by CCHQ as providing the donation for your Shadow office;
CCHQ only so identified it because Mr Taylor had at some stage in a handwritten letter said (unbeknown to you) that he was very glad to see that you were receiving support;
once you had been informed of thissubsequent to the complaint against Mr Osborneyou thought it important that its existence should be properly known.
I am most grateful for your help.
12 February 2008
37. Note of meeting between the Commissioner and Mr Michael Gove MP, 12 February 2008
Further to our meeting on 7 February, I thought it would be helpful to set down the main points you made in relation to our recent correspondence.
I asked whether you knew the identities of your donors before the complaint against George Osborne became public knowledge on 13 January this year. You said that the position was:
1. Your newly established Shadow Office did not have any financial support from donations before your arrival.
2. You spoke at 2 fund-raising dinners about education policy. After the dinners you wrote to those who had indicated their interest in providing financial support, not knowing if, when, how much or whether any resulting donations would be made to you personally, to the Party or not at all.
3. CCHQ provided you with resources from donations to help run your Shadow Office.
4. Before Christmas 2007 you asked CCHQ for a list of the donors who had contributed to your Shadow Office - whether or not as a result of the fundraising activities. CCHQ provided this after 13 January 2008.
5. You have received further donations this year and will write to me with the details.
6. For the avoidance of doubt you would like to register with both the Electoral Commission's register and the Register of Members Interests all donations of over £1000 made to you since 2005.
Please let me know if this captures your main points or if you would like to add to or amend it. I am most grateful for your help.
12 February 2008
38. Letter to the Commissioner from Rt Hon William Hague MP, 14 February 2008
Thank you for your letter of 5 February concerning the registration of donations received through Conservative Campaign Headquarters.
I can confirm that I knew the identity of the donor whose donation has helped to provide one member of staff who supports me in carrying out my Frontbench responsibilities.
14 February 2008
39. Letter to the Commissioner from Mr Jeremy Hunt MP, 7 February 2008
Thank you very much for your letter dated 5th February regarding my correspondence informing you of the donations I receive through Conservative campaign headquarters towards the running of my office in respect of my Shadow Ministerial responsibilities.
You ask for the date of the contributions made for the benefit of my Shadow Office. John Lewis donated £25,000 on 19 May 2006 and 24 May 2007, and Peter Hall donated £50,000 on 24 February 2006.
I can confirm that I did know the identity of the donors prior to 13th January 2008.
I hope that this is helpful to you, but please do not hesitate to let me know if you require any further information.
7 February 2008
40. Letter to the Commissioner from Mr Andrew Lansley MP, 18 February 2008
Thank you for your letter of 5 February. Prior to the discussion with Conservative Campaign Headquarters on 21 January, I was aware that Mr Julian Schild was probably a donor to CCHQ. I was not personally aware of the names of the other donors. As I met them at a previous lunch it could be argued that I might have inferred they were donors although I have met many other people at CCHQ's request, who are not recorded as donor's wishes.
18 February 2008
41. Letter to the Commissioner from Rt Hon Francis Maude MP, 7 February 2008
Thank you for your letter of 5th February 2008 in response to mine of 24th January regarding registration of donations.
In answer to your question, I can confirm that I did know the identity of my donor before the complaint against Mr Osborne became public knowledge on 13th January this year.
7 February 2008
42. E-mail to the Commissioner from Mr Grant Shapps MP, 23 February 2008
I didn't generally know the donors because they had donated before my time in this role when Michael Gove held my position and direct to CCHQ, who had vetted and declared their donations to the Party as appropriate. However, over a period of time, some of the individuals belatedly introduced themselves at dinners or industry functions.
To clarify, when I wrote my original note to you, I specifically asked CCHQ to supply me with a list of names and companies of those behind CCHQ's funding of my Housing Researcher and this was the first time I had ever viewed a complete listing.
The money was already donated to CCHQ by the time I was in the Shadow Housing Minister role and they simply let me know that there was a budget available to employ a Housing Researcher through the Parliamentary 'Other Payroll' system.
23 February 2008
43. E-mail to the Commissioner from Mrs Theresa Villiers MP, 7 February 2008
Thank you for your letter of 5 February. In response to your question, yes I knew the identity of all donors who had expressed a wish that their donation to the Conservative Party be devoted to assisting my work on the Opposition front bench from the point at which they gave their donations, i.e. before the debate emerged on this issue in relation to George Osborne's office.
Please let me know if I can assist in any other way.
44. Letter to the Commissioner from the Registrar of Members' Interests, 6 February 2008
I write in response to your letter of 22 January about the complaint that Mr George Osborne has failed to enter in the Register of Members' Interests donations made by identifiable donors to Conservative Central Office which were used to support his office as Shadow Chancellor.
The answers to your questions are set out below.
Exchanges with Opposition Whips' Office and Mr Osborne.
The first discussion I had with Mr Osborne himself about the registration of donations made to his office through the Conservative Party took place on the afternoon of Friday 12 January this year (2008). He was accompanied by a Special adviser to the Opposition Chief Whip, and he said that his visit was prompted by press interest in donations to his office.
I had had a meeting with Mr McLoughlin, Opposition Chief Whip, on the afternoon of Wednesday 5th December 2007, arranged through the special adviser. It is not in my diary, I believe because it was arranged at almost immediate notice. In the morning of that day, the special adviser e-mailed me a further copy of the existing guidance provided by the party to the Shadow Cabinet about outside interests. I had been shown this guidance in March 2004 and had been asked whether it complied with the rules of the House, which it did. The rules of the House make no distinction between shadow ministers and other Members who are not Ministers, but parties may impose restrictions of their own. There seemed no need on 5 December to make any further comment on the advice given, no relevant changes in any rules of the House having intervened.
The guidance to shadow ministers makes no mention of donations made through Central Office, whether or not accompanied by a request that they should be put to a particular use ('hypothecated'). A copy of this guidance, as e-mailed to me on 5th December, is appended as A.[54]
Either because of the press coverage to which Mr McLoughlin refers in his letter or because of the further copy of the guidance to shadow ministers I had been sent, I expected Mr McLoughlin to wish to discuss further whether there were any special requirements placed by the House on shadow Ministers in respect either of the interests they may hold or in respect of the registration and declaration of such interests; indeed I told the then Commissioner as much before I left the office. I recall being slightly surprised when, in the event, Mr McLoughlin asked about the areas of overlap in registration between the Electoral Commission and the Register of Members' Interests. I was, of course, aware that the question of a 'one-stop shop' for the declaration of interests, whereby Members would no longer be expected to register interests with the Electoral Commission as well as with myself, is an issue of considerable current concern to Members, so it seemed entirely natural that Mr McLoughlin should wish to discuss it. I explained the areas of overlap, which are principally covered by Categories 4 (Sponsorship) and 6 (Overseas visits) and said that I expected the House soon to be in a position to decide whether a 'one-stop shop' could be implemented so that dual registration would no longer be required (at which he expressed relief).
I do not recall any reference in my conversation with Mr McLoughlin to hypothecated donations. Nor did I understand at the time that such donations (however binding or otherwise the degree of hypothecation) were a common feature of party funding.
Mr McLoughlin and I agreed that I would send him a note of the areas of overlap, and that I provided on December 6.[55] A copy is appended.
On my return to the office I told the Commissioner that the subject of the discussion had been overlap with the Electoral Commission.
On Friday 7th December the special adviser telephoned me to clarify a point arising from the meeting with Mr McLoughlin. Somewhat unusually, I do not have a note of the conversation. On Friday 12th January when accompanying Mr Osborne, the Adviser reminded me it was about "linked donations".
According to Mr McLoughlin's letter to Mr Osborne the special adviser reports that she asked me 'whether the distinction the Electoral Commission made of donations to an MP as an office holder rather than to the MP as his or herself, also held for the Register of Members' Interests. She was informed that if a donation to a constituency association was 'linked by name' it should be declared. When asked whether the same would apply for a donation made to Conservative Central Office and "linked" in any way to a front-bencher, The Registrar said that the rules were likely to be the same but it depended on the nature of the donation'. I do not challenge this account of the conversation, but obviously something left me uneasy because immediately afterwards I had second thoughts and e-mailed the special adviser 'I think I misled you just now. The Register deals with donations to a Member's constituency association and not to central offices. Sorry'. A copy of this e-mail is appended as C. [56]
I think I sent the e-mail because I was worried that I had left the special adviser with the impression that Members must register with us donations to Central Office which had been solicited by them. My reference to constituency associations shows that I was thinking in terms of Category 4a ('any donation received by a Member's constituency association which is linked either to candidacy at an election or to membership of the House') rather than to Category 4b ('any other form of financial or material support as a Member of Parliament'), that is, I was thinking of donations into rather than out of, or through, central funds. I was certainly not at the time thinking in terms of donations to Central Office for the use of particular shadow cabinet members (I note that in his letter to Mr Osborne of 17th January, Mr McLoughlin also addresses Category 4a and not 4b). I can, however, see how misleading the Adviser, and through her Members, may have found my second e-mail. With hindsight it would have been much preferable that I telephoned the special adviser to explain that my reservations applied to Category 4a rather than 4b, or at least sent a fuller e-mail. I should have re-emphasised that part of my advice which ran 'it depends on the nature of the individual donation' and added that I was always available to advise individual Members. I should also have offered to look at a copy of any guidance being issued in the same way as I had seen the earlier advice.
To re-iterate, I do not recall being asked at any time, either by Mr McLoughlin or by the special adviser, specifically about donations made to Central Office accompanied by a request that they should be used for the support of a particular front bench Member or team. My thinking was centred on Category 4a (always the most difficult category to interpret) rather than on 4b.
When Mr Osborne came to see me on 12 January he showed me copies of my two e-mails to the special adviser. I did indeed say that my advice might have been unclear. I can see that it veered from addressing the question which the special adviser understood she was putting to me. Obviously I much regret that, through not seeking to establish more precisely in December exactly what question was being asked, and through not putting my full and considered advice in writing, I have caused troubl |