Public funding
Arguments in favour of public funding
Adding to the amount of public funding which parties receive is not popular, but there are clear arguments in favour of it as well as against it. Simply put it would help ensure financial stability and underline the real public interest in healthy political debate.
If allocated according to votes cast at one or more previous general elections, and in relation to elections for the devolved administrations, it would, depending on the threshold set, assist smaller parties and not just the big battalions. It could also encourage voter turnout in safe seats.
A significant amount of public funding is a settled component in the Westminster-style democracies of Canada, Australia and New Zealand; and also in many continental European countries.
Arguments against public funding
Resistance to more public funding comes in a number of forms. Some oppose this as a matter of principle, although the principle has been breached in practice for some time.
Others argue that they do not want their money going to a party with whose views they disagree; others that it would actually lead parties to engage with voters less, especially if it led to greater centralisation and less local activity.
It is possible to point to examples from abroad where significant public funding of parties has not removed the risk of abuse or perceived abuse.
Serious consideration of merits and drawbacks
It is quite clear that public funding should not be dismissed out of hand, but serious consideration given to both the merits as well as the drawbacks.
Other ways any public funding could be distributed
Some commentators and some reports and research have suggested two ways in which more public funding might flow to parties other than as a general subsidy.
Rewarding party membership
One way would be to reward membership, and encourage parties to attract more members or more small donations, by some scheme of matched funding. It is argued this would provide an incentive for parties to engage more directly and regularly with voters, particularly if funds were to flow to local parties as well as to the centre.
However, it would be important to take account of the cost of administering and regulating a system which might cover thousands of small donations or small sums of matched membership fees.
Encouraging specific party activities
Another suggestion would be to provide more public funds for defined activities which are in the long-term interest of developing a better informed relationship between parties and voters. The existing public funds are designed to assist parties to discharge their Parliamentary duties such as representing constituents, and formulating policy.
Any increase in public funds might further support these activities and others which are clearly in the public could cover research, training and educational activity, for example, other sources for general administration and campaigning.
Page last updated: 19 October 2006