News from the New Party

Press Release: New Party’s proposal endorsed in funding review

The New Party today thanked Sir Hayden Phillips for supporting its proposal for exemptions from a cap on donations for smaller parties.

Although the New Party opposes state funding of political parties in principle, and thus does not subscribe to the main intent of the Political Funding Review, we note an important but vital finding.  Sir Hayden proposes that parties not eligible for state funding – those not having two or more seats at Westminster, the Scottish Parliament, the Welsh Assembly or the European Parliament – should not have a cap on private donations.

New Party spokesman Dr Nigel Knight comments:
“This important exception is vital if new entrants are able to take part in the political process.  Without this, the proposed rules would be a denial of the rights to free speech and association.  On behalf of the New Party, I should like to thank Sir Hayden Phillips for taking note of our concerns on this issue.”

The New Party does have ongoing concerns with the idea of state funding as well as its practical application.  Any attempt to distort the rules to favour trade union donations over donations from any other private organisation, for example, would be unacceptable.  We also note that editorial coverage for parties in the media amounts to massive support in kind, making a nonsense of the idea of a cap on donations.

If there is to be any state funding of parties at all, we believe that parties should be given a choice: receive state funding but accept a cap on donations, or decline state funding but have no cap on donations.  This proposal would at least minimise the potential for distorting the electoral process by state intervention.

Notes for editors:

1. The report of the Review of the Funding of the Political Parties was published on March 15, 2007 by Sir Hayden Phillips.  See: http://www.partyfundingreview.gov.uk/htms/news.htm

2. Following his Interim Assessment on the issue in October 2006, the New Party wrote to Sir Hayden Phillips proposing exemptions to the cap on donations for smaller parties.

3. On page 9 of yesterday’s report, it states: “I see no reason at present to include new parties and those smaller parties without elected representatives within the scope of a donation limit. They would come within them if they secure election of a minimum of two representatives to a devolved assembly or parliament, to the European Parliament or to Westminster.”