I pay tribute to Lord Cormack for his work on the Bill and his words in the House of Lords. He might seem to some an unlikely hero of the working class, but in this instance he has reflected what one nation Conservatism should mean. That phrase is bandied about from time to time, but his interventions and those of other colleagues in the House of Lords remind us that we legislate not just for one Parliament but for the future. I will go on to describe why it would have been very dangerous if the Government had stuck to their original plans.
The House of Lords looked for a workable way for the Government to introduce their stated manifesto commitment without it becoming a crude and clumsy device to starve the second largest party in Parliament—the Labour party—of a long-standing source of finance from the very institutions that founded it. My hon. Friend just said this in another way, but I think that the Lords have done the Government a big favour. Had they proceeded with the original proposals, they would have created—make no mistake about it—a lasting bitterness and resentment in the trade union and Labour movement and, indeed, beyond. We are grateful for the support received from other political parties.
I have no doubt, as many of their lordships pointed out, and, indeed, as paragraph 130 of the House of Lords cross-party Select Committee report noted, that the original proposal would
“make the Labour Party more inclined to take unilateral action against the Conservative Party and its funding when next in government.”
It appears that, at this very late hour, that point as hit home with Ministers, and I very much welcome that.
The Government have decided to think again about their proposals on political fund opt-ins and have tabled amendments (k) to (n) to replace Lords amendments 7 and 8. The requirement to opt into political funds will apply only to new union members. As a result, union members who have already voluntarily agreed to make contributions will not be required to opt in again to support ongoing trade union campaigns. Existing members will be required to opt in only if their union votes to establish a political fund for the first time. The Government have also conceded on the issue of five years and have allowed for a minimum 12-month transition period for unions. Union members will be able to opt in or opt out not only on paper, but through electronic means, so it is now okay to use electronic means to opt in—we will eventually get it to apply to ballots—including online forms, emails and, potentially, texts. Unions will still be required to remind members annually of their right to opt out and they can do so by using individual communications or through their usual systems for informing members, including union newsletters and notice boards.
The Government’s amendments take on board all of the core elements in the proposals made by Lord Burns’s Committee’s report, and I remind the House that it passed the Lords by 320 votes to 172. It therefore passed by an even greater majority than that which set up the Select Committee in the first place, which demonstrates the growing support for this approach.
I still believe that the proposals for an opt-in system for political funds are totally unnecessary—that should be put on the record—but we recognise that the Government’s new proposal is a substantial improvement
on the original Bill, which would have required all members to opt in within three months and to renew that opt-in within five years. On that basis, while retaining our opposition to the Bill in general and to opt-in in particular, we will not seek to divide the House on the Government amendments, given the substantial concessions they have made.