October 20th, 2011:

Summary of main pointsThe Political Parties, Elections and Referendums Bill was presented on 21 December 1999and is due to be debated on second reading on Monday 10 January 2000. This ResearchPaper covers the provisions in the Bill relating to donations to political parties and partyfinance in general. Two companion Research Papers are also available: RP 00/1 dealing withthe electoral aspects of the Bill, and RP 00/3 covering referendums and broadcasting aspects.The manifesto on which the Government was elected in 1997 included three commitmentsregarding party funding:· to oblige political parties to declare the source of all donations above a minimum figure· to ban foreign funding of political parties· to ask the Committee on Standards in Public Life to consider how the funding of politicalparties should be regulated and reformedThe Committee, under the chairmanship of Lord Neill of Bladen, reported in October 1998.The Government’s subsequent White Paper included a draft Bill, which forms the basis of theprovisions in the Bill.The main provisions of the Bill relating to the control of donations are:· the publication of details of donations to political parties of £5,000 or more at national level,and £1,000 at local level· a ban on donations from outside the UK, from trust funds and from unknown sources· a requirement for shareholder approval for company donations to parties· requirements relating to party accounts and the reporting of donations· control of donations to third parties, individual party members and member associations· establishment of a Policy Development Fund, making grants available to political parties· a reduction in the maximum qualifying period for overseas voters to 10 yearsThis paper examines the relevant provisions and also looks at related issues:· party finance in general· the question of public funding for political parties, including financial assistance to parties inParliament and the new devolved bodies in Scotland, Northern Ireland and Wales· the case for and against tax relief on donations· the honours system

download PDF : RP00-2[1]

IntroductionSince they emerged in the 1980s, Hong Kong political parties have struggled todevelop and establish themselves. They were discouraged by the British for most ofthe period when they ran Hong Kong. To this day, political parties confront a rangeof obstacles to healthy growth, including the denial of any governmental role toparties based on electoral popularity, limited public support, the limited law-makingrole allowed Legco, the negative impact of the functional constituency system, a selfchosenpreference for politics based primarily on opposition rather than policydevelopment and the watchful anxiety (especially in relation to pro-democracy parties)of Beijing.Limitations within the electoral-political-infrastructure (EPI) comprise one furtherinhibiting factor. EPI reform is really a “stand-alone” issue, however. That is, it canbe looked at separately from the inhibiting factors noted above. It can also beconsidered outside of the rather highly-charged debate about the pace ofdemocratization in the HKSAR. Hong Kong needs mature, stable, policy-focussedpolitical parties. EPI reform can help lay better foundations for the long-termdevelopment of all parties in Hong Kong.My view, based on a recent research report completed for Civic Exchange (PoliticalParty Development in Hong Kong (PPDEVHK Report))2 is that a new Political PartyOrdinance is not needed in Hong Kong to effect EPI reform. I believe we alreadyhave a basically sound – though incomplete – EPI governing the conduct of elections(and, indirectly, the operation of political parties) in the HKSAR. The way forward isto build on these essentially positive foundations using a series of legislative andrelated initiatives.The PPDEVHK Report – which forms the basis for this submission – includes adetailed, comparative review of the Australian experience with regulating electionsand political parties. The basic regulatory system in Australia is now over 100 yearsold. It has been steadily improved over time and, unlike in the US, for example, it iswidely regarded by participants from all sides of politics as working well. This makesit, comparatively, one of the most durable and successful, electoral-regulatorysystems in the world.

Download PDF : PPREGN-HKSAR-LEGCOSUB-CIVEX-22005-20102011