LIB DEMS CALL FOR URGENT REVIEW OF LAW ON LIVINGSTONE DONATIONS

12.01.00am GMT Tue 3rd Feb 2004

Following the announcement of Ken Livingstone as Blair's Mayor, the Liberal Democrats have today written to the Electoral Commission to demand an urgent investigation into the rules surrounding the way donations are handled.

Mr Livingstone has so far failed to publicly declare donations to his Mayoral campaign. There is also confusion surrounding the legality of whether now he has rejoined Labour he has to declare existing donors, or simply can write a cheque to the Labour Party in his own name.

In the letter to the Electoral Commission the Liberal Democrats write:-

"It seems entirely unacceptable that the holder of a relevant elected position who receives any funding from external sources, whether in respect of his current role, or his re-election to that role should not declare that income.

"It is clearly in the public interest for such donations to be disclosed and we would invite you to ask the Commissioners to undertake an urgent review of their interpretation of the rules under which the Mayoral election campaign is being run."

Simon Hughes said:-

"Confusion surrounds the way in which donations to Mr Livingstone's campaign have not had to be publicly declared. Candidates of all the three main parties are legally obliged to register publicly any significant donations for political purposes, but until now the Mayor has escaped from this.

"Without full and explicit declaration of campaign donations there is the potential for a direct conflict of interest between those organisations and people that are funding him and the interests of Londoners.

"Now that Mr Livingstone is the Labour Party candidate it is time for him to declare all his campaign donations from the last four years. As I am sure the Mayor has nothing to hide, he will have no trouble in setting out to Londoners who has given him the cash for his campaign.

"In the interests of preserving the integrity and transparency of the London Mayoral elections I urge Mr Livingstone to come clean and publicly declare his donations."

ENDS

A copy of the letter to the electoral commission is enclosed

Roger Creedon

Chief Executive

The Electoral Commission

Trevelyan House

Great Peter Street

London

SW1P 2HW

3rd February 2004

Dear Roger

Regulation of Mayor Livingstone

Thank you for your letter of 21 November regarding regulation of donations to the Mayor in respect of his re-election campaign. As this is not a party political matter but rather an important issue of principle regarding transparency, I wanted to respond indicating that we cannot concur with the Commission's stated position on this matter.

It seems to me entirely unacceptable that the holder of a relevant elective position who receives any funding from external sources, whether in respect of his current role, or his re-election to that role should not declare that income.

We believe it highly likely that the Mayor's re-election campaign is being funded by trade unions who have a direct interest in his functions as Mayor, for example the RMT which negotiates salary and terms matters with the Mayor in his capacity at Transport for London. It would also mean that as an elected official the Mayor does not have to declare any funds from any individual that he has received money from no matter how dubious that individual's background may be.

It is clearly in the public interest for such donations to be disclosed and we would invite you to ask the Commissioners to undertake an urgent review of their interpretation of Schedule 7 1(3)(c).

In particular, I hope you will consider two aspects of this issue:

1. The interpretation indicated in your letter of 21 November would open a loophole for a party which wishes to avoid transparency. In other words have your candidate nominally an independent until the last moment.

2. The interpretation appears to run contrary to the expressed intention of the legislation. I hope the Electoral Commission will give careful consideration to the intention of Parliament and the Government in drawing up the legislation when deciding what interpretation to put on it. In particular, I would draw your attention to the "Explanatory Notes" published to the PPERA. Page 34, which covers this part of the legislation, states that that Schedule 7 applies, "to donations made to individuals and members associations for their own use or benefit in connection with their political activities." I think it would be hard to argue that "political activities" does not cover standing for political office in a public election. Moreover, the notes go on to state (p.34 para 136), "A controlled donation to a holder of a relevant elective office is a donation offered to or accepted by him in conjunction with any political activities of his" (my emphasis).

Finally, as it seems very likely that the Mayor will be adopted as the official candidate of a registered party, may I enquire as to the status of donations he has received prior to his adoption as that party's candidate? Will they need to be declared and if so on what basis?

I look forward to your urgent response.

Yours sincerely

Victoria Marsom

London Regional Campaigns Officer

Liberal Democrats

Agent to Simon Hughes