Falconer grilled over party funding
Wednesday, 19 Apr 2006 11:08
Lord Falconer to appear before MPs in party funding probe
Lord Falconer will face a grilling by a committee of MPs later today as part of an investigation into the funding of political parties.
The constitutional affairs committee is looking into the system in the wake of the loans for peerages affair, where major questions were raised about the way certain individuals were bankrolling the major parties – and allegedly receiving favours in return.
The lord chancellor, who is also the constitutional affairs secretary, will give evidence to the committee this afternoon alongside his permanent secretary, Alex Allan, although the session is likely to look at the wider issue of funding, not just the current row.
"Party funding is a significant component of the existing democratic system on which our constitution rests and recent events have underlined the problems and dangers surrounding it," chairman Alan Beith said at the launch of the probe last month.
"We realised that there was an urgent need to take evidence in the course of an open and transparent inquiry in order to ensure public confidence in the integrity of the democratic process."
Labour and the Conservatives deny any wrongdoing, although several wealthy backers of both parties have received seats in the House of Lords.
However, the issue has caused Tony Blair to meet Tory leader David Cameron and Liberal Democrat leader Menzies Campbell to discuss party funding, and both opposition parties have called for a cap on individual donations.
The government has also promised to table amendments to the electoral administration bill, currently going through parliament, to force parties to declare all their loans.
Currently only donations, or loans at a preferable rate of interest, must be made public, but this prompted concern that this system was being abused to keep the names of wealthy backers anonymous.
Scotland Yard is currently conducting an investigation into potential breaches of the Honours (Prevention of Abuses) Act 1925, which bans the sale of honours, and officers made their first arrest last week.