Orders of the Day — New clause 76 — Expenditure on lobbying — 18 Oct 2006 at 18:00

'(1) A company must not in any financial year incur expenditure on lobbying activity in excess of the limit then in force, unless the expenditure has been authorised by a resolution of the members of the company.

(2) The provisions of sections 372(2) to (5), 372(6)(b), 372(7), 373(1), 373(2), 373(4), 373(6), 373(7), 374 and 375 to 379 shall apply to a resolution under this section.

(3) The Secretary of State shall have power to make regulations, which shall be subject to the affirmative resolution procedure, to-

(a) set the limit, and

(b) exempt, to any extent the Secretary of State sees fit, expenditure incurred by companies in responding to requests for information initiated by governmental or parliamentary bodies,

but if the Secretary of State fails to set the limit, the limit shall be £1,000.

(4) Companies must report expenditure on lobbying activity in excess of the limit in a form to be specified by the Secretary of State by regulations, which shall be subject to the affirmative resolution procedure.

(5) Failure to comply with reporting requirements established under subsection (4) shall count as a violation of the duty to keep accounting records under section 392 and shall be punishable in accordance with section 393.

(6) This section applies to overseas companies, as defined in section 1011, as well as to UK companies, and the powers of the Secretary of State in Part 34 shall be deemed to include a power to require overseas companies to report their expenditure on lobbying activity in excess of the limit.

(7) "Lobbying activity" means any activity intended directly or indirectly to influence legislation or policy at any level of government in the United Kingdom.'.- [David Howarth.]

Brought up, and read the First time.

Motion made, and Question put, That the clause be read a Second time:-

The House divided: Ayes 50, Noes 291.

Debate in Parliament | Source |