The Political Parties, Elections and Referendums Act 2000 (Northern Ireland Political Parties) Order 2008

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes provision about the regulation of loans to parties registered in the Northern Ireland register of political parties and about the participation of certain members, associations of members and officers of such parties (“Northern Ireland participants”) in financial transactions connected with political activities.

The effect of sections 71Z and 71Z1 of the Political Parties, Elections and Referendums Act 2000 (“the 2000 Act”), as inserted by the Electoral Administration Act 2006 (Regulation of Loans etc: Northern Ireland) Order 2008 (S.I.2008/1319)(“the 2008 Order”), is to enable Northern Ireland participants to enter into regulated or controlled transactions with Irish citizens or prescribed Irish bodies which meet prescribed conditions. Part 2 of this Order makes provision to this end. The condition which must be met in relation to Irish citizens is set out in article 3 of this Order. Article 4 sets out the Irish bodies which are able to enter into regulated or controlled transactions with Northern Ireland participants. The Schedule to this Order amends Schedule 6A to the 2000 Act to set out the information which must be provided in relation to regulated transactions involving Irish authorised participants which the Northern Ireland participants are required to provide to the Electoral Commission (“the Commission”).

During the period from 1st July 2008 until 31st October 2010 (“the prescribed period”) article 5 of the 2008 Order and sections 71Z3 and 71Z4 of the 2000 Act, as inserted by the Schedule to the 2008 Order, modify the 2000 Act to place a duty on the Commission to verify the information contained in reports of regulated or controlled transactions prepared by Northern Ireland participants (“Northern Ireland reports”). Part 3 of this Order sets out the duty of the Commission during the prescribed period. The steps which the Commission must take in relation to these Northern Ireland reports are set out in articles 7 to 9 of this Order. The Commission may verify the information provided in the Northern Ireland reports by, for example, checking the register on which an Irish body which has become a party to the transaction is listed or contacting the bodies listed in article 11 to whom it is able to disclose information.

Section 71Z4 of the 2000 Act, as inserted by the 2008 Order, places a duty of confidentiality on the Commission in relation to information contained in Northern Ireland reports during the prescribed period. Under section 71Z4 of the 2000 Act, the Commission is empowered to release information contained in a Northern Ireland report, if it relates to a regulated or controlled transaction when it believes on reasonable grounds that a party to the transaction was not an authorised participant and the transaction therefore fell to be dealt with in accordance with section 71I or 71J of, or paragraph 5 or 6 of Schedule 7A to, the 2000 Act. Article 10 sets out the requirements in accordance with which such information must be released.