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Lying in a democracy reminds me of the old computer programmers saying: GIGO: Garbage In, Garbage Out. But I would go further than just banning lying in Parliament and want sanctions against all political lies aimed at deceiving the public. One way of doing this would be to use the Advertising Standards model (which doesn't yet cover political advertising). I think the harshest sanctions should be for prepared statements with demands for corrections for wrong statements made in interview or conversation. The same should apply to journalists. Corrections should be made with the same "volume" as the original mistake.
Please click here for a more detailed view of how this would work.