POLITICAL FUNDING:WIDE-RANGING changes in the way politics is funded and companies governed are recommended in the tribunal report.
The proposals include voluntary audits for political office-holders, tax relief on small donations and disclosure of all donations to a Government ethics body.
The report acknowledges that considerable advances have been made on political funding since the 1990s, including a requirement on politicians and parties to disclose donations and limits to the amounts that can be given.
It says the payments it has investigated show the key role of disclosure in political donations. Not only should the fact and size of donations be disclosed, but details should also be provided of any relevant financial, commercial or other interests of the donor. Stricter rules on disclosure should apply at election times.
The report recommends that all donations, including loans, from individuals or companies, should be disclosed to the Standards in Public Office Commission.
All income of political parties should likewise be disclosed to the commission. Small donations would not be disclosed publicly, except where the commission “discerns a pattern”.
The commission would also publish the size and number of all donations and whether the donor was revealed or not.
Independent candidates would also be subject to disclosure rules.
The report says consideration should be given to allowing tax relief on donations in order to encourage small donors to participate in the political process and to lessen the dependency of the political process on large donations.
The report urges consideration of voluntary audits by the commission of political office-holders during their period in office and for a defined period thereafter.
It also makes recommendations for changes in company law based on recent UK reforms. Directors should be obliged to have regard to high standards of business conduct in their companies, and any company donations should be authorised by its members first.
