Charities Bill [Lords]


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Peter Bottomley: Will the Minister write to the Committee explaining in slightly more detail why that is so?
Edward Miliband: It would require rather more than a letter, I fear, but I shall add it to the list.
Question put and agreed to.
Clause 43 ordered to stand part of the Bill.

Clause 44

Merger of charities
Question proposed, That the clause stand part of the Bill.
Peter Bottomley: I think I am right in saying that it is not one of the purposes of the Charity Commission to encourage mergers. In my opinion, that is the correct position for the commission to take, but I think that those of us who are involved in charities and interested in their work should encourage mergers, and I hope that all charities—whether incorporated or unincorporated—will find ways of joining together, whether as a true marriage of equals or with one becoming a restricted fund within an existing charity.
As a trustee, I am conscious of the responsibility to keep down administrative costs and I hope that those running the charities, both trustees and staff, can devote an increasing amount of their time to the purposes for which the charities exist rather than to the maintenance of the charity itself. If in 10 years’ time we had half the number of charities in this country, I expect that they would be achieving more in terms of their charitable purposes.
Edward Miliband: As always, the hon. Member for Worthing, West speaks wise words. The clause does not only create a new register of charity mergers, but, hopefully, it will enable mergers to take place more easily with the pre-merger vesting declaration, which is a device to enable the automatic transfer from one charity to another of many types of property that need to be transferred during a merger. I hope that the clause will stand part of the Bill.
Question put and agreed to.
Clause 44 ordered to stand part of the Bill.

Clause 45

Regulation of public charitable collections
6.15 pm
Martin Horwood: I beg to move amendmentNo. 144, page 53, line 20, at end insert—
‘it does not include a charitable appeal which is made on private property;’.
The Chairman: With this it will be convenient to discuss the following amendments: No. 45, page 54, line 22, at end add—
‘(8) Nothing in this or any other legislation shall permit a condition to be attached to the permission for a public collection which prevents the collectors from shaking their collecting tins—
(a) between the hours of 8am and 6pm; or
(b) at other times unless it can be demonstrated that the shaking of tins is likely to cause a public nuisance.’.
No. 130, page 54, line 22, at end insert—
‘(8) Persons making a public charitable collection shall be allowed to shake or rattle collection tins or vessels.’.
No. 145, in clause 49, page 56, line 16, at end insert ‘, and
(c) ensure that all collectors carry photographic identity badges in a form approved for this purpose by the local authority.’.
No. 150, in clause 60, page 65, line 41, leave out paragraph (b).
No. 143, in clause 60, page 65, leave out line 42 and insert
‘a day which, when taken with the day on which that other collection is already so authorised, would result in collections being undertaken in that locality more frequently than once every other day.’.
No. 46, in clause 63, page 68, line 24, at end insert ‘excluding local collections;’.
Peter Bottomley: On a point of order, Mrs. Humble. Have you had any indication of how far the usual channels think we ought to get this evening?
The Chairman: That is not a point of order for the Chair. I call Martin Horwood.
Martin Horwood: Amendment No. 144 would introduce a new provision in clause 45, which concerns the regulation of public charitable collections. I am aware that it is a mildly contentious clause for Committee members and many other MPs, because it touches on the practice referred to on Second Reading as chugging—charities’ ability to raise sometimes vital funds not through traditional forms of charitable appeal or by shaking tins but by making appeals for standing orders and direct debits in public without some of the restrictions applying to traditional charitable collections. The Bill rightly proposes a range of amendments to fundraising rules that will bring such fundraising under proper regulation by law and, on many occasions, by local authorities. However, there is a risk that by being too enthusiastic in our regulatory zeal, we might impose undue restrictions on charities that would damage the income that we all want to go to their beneficiaries.
Clause 45 contains one such unduly restrictive measure. As I read it, the clause restricts collections defined as public charitable collections under subsection (2). Public collections are those made
“(i) in any public place, or
(ii) by means of visits to houses or business premises (or both)”.
So far, so good, but the problem lies with the definition of “public”. A public place is defined in subsection (6)(b) as
“any other place to which, at any time when the appeal is made, members of the public have or are permitted to have access and which either—
(i) is not within a building, or
(ii) if within a building, is a public area within any station, airport or shopping precinct or any other similar public area.”
That will take us into an extraordinary situation. For instance—to quote an example that was familiar to me a few years ago—if the Alzheimer’s Society agrees with Tesco that charitable collections will take place on Tesco premises, which are Tesco’s private property, the society will have to seek the local authority’s permission and obtain a permit to do so. The conditions will apply because the collection will be in a public place as defined by the Bill.
Peter Bottomley: Has the hon. Gentleman taken advice on whether being on the premises of the shop is different from being within a shopping precinct?
Martin Horwood: I have not, but I assume that the shop would not be covered by the broader definition of “public place” in subsection (6). However, a shopping precinct clearly would be. Perhaps Tesco was a bad example, although Tesco and large supermarkets have equivalent public areas. However, if the proprietors of a shopping precinct agree with a charity that collection is to take place and the arrangement has been made between those two private parties, I cannot see that it is the law’s job to step in and say that extra conditions should apply.
James Duddridge: By way of example, there is an area in my constituency, Victoria plaza, that has a public right of way through it. If a private citizen passed through it to go shopping, he would still pass through a right of way. Surely, it should be considered a public area, rather than foisting the private views of that particular property holder upon the individuals wandering through.
Martin Horwood: The views of the Conservative Party on private property seem to be developing.
Alun Michael: It is interesting that the hon. Gentleman is developing as a protector of the rights of private property owners. Does he not agree that the general public would apply a common-sense approach to what a public open space is—somewhere that is open to general access to the public? The question of who owns the land over which the public are walking is often fairly academic to people.
Alun Michael: The hon. Gentleman used an interesting phrase—if the public have no “likely objection”—but surely they have elected representatives in the local authority to make that judgment. They have no way of expressing an objection or support to private property owners of those public open spaces that happen to be privately owned.
Martin Horwood: The public have every means of expressing their discontent. They can withdraw their custom, their donations or both. Those sanctions are available to them.
By way of background, I would say that when I was a fundraising director, the number of complaints about telephone marketing was relatively high, but there were very few complaints about public, charitable collections because they are the easiest thing in the world to avoid. People can simply walk past and not give. That is the same in the case of shaking tins as it is with giving direct debits or standing orders.
The amendment would prevent an onerous administrative burden from being placed on charities. We have to remember the net effect of these things. This is not a cost-free exercise. If the administrative burden will be as bad as I think that it will be, it will result in fewer donations and consequently less income to the very causes that we are trying to support with the Bill. Therefore, it is a serious amendment and I would like the Minister’s response to it.
On amendment No.145, I was puzzled to find it listed under clause 45 because it is an amendment to clause 49, which is several pages later on page 56. That should not be interpreted as any change in the broad Liberal Democrat scepticism about the carrying of identity badges. In the case of people who call door to door, well established guidance from the police and others says that those carrying out official business or business that is recognised by law should carry photographic identity badges wherever possible. This is an opportunity to reinforce that point.
One of my concerns about the reputation of the charitable sector is that it is being impinged upon by collectors who purport to be charitable but are actually running a variety of either commercial operations or ones that are even less reputable than commercial operations. Those are intended, on occasion, to defraud householders of their money. That seems a real threat and I am concerned about it. Locking in the idea of photographic identity badges at this point seems a good opportunity.
The amendment would require the badge to be approved by the local authority. However, if the badge is connected with a collection certificate issued by the Charity Commission and if one of the purposes of that is to allow an organisation such as Oxfam only to have to apply for one collection certificate for the whole country, would it not be more appropriate for the badge design to be linked to the collection certificate from the Charity Commission, rather than having individual badges from individual local authorities?
Martin Horwood: The hon. Gentleman makes an excellent point, which I am happy to accept. Had I been able to move the amendment, I would have been content to withdraw it on that basis, as he has suggested a significant improvement. I commend his thoughts to the Minister.
Amendment No. 150 would amend clause 60. The clause is well intentioned, but there is an onerous restriction—albeit possibly an inadvertent one—that could be placed on public charitable collections. The Institute of Fundraising has raised a concern about that restriction with me and possibly also with other Committee members. Clause 60(2)(b) provides for possible restriction by local authorities of public collections when it is proposed to conduct such a collection
“on a day on which that other collection is already so authorised, or on the day falling immediately before, or immediately after, any such day.”
Let us imagine the practical impact of that. There is a seven-day week, and Sunday is a day on which public charitable collections rarely take place, so there are really six days at people’s disposal. The local authority might authorise a collection on a Tuesday and then choose to restrict collections on either side of that day, thereby ruling out Mondays and Wednesdays. There might then be an application for a collection on a Friday, following which the local authority might choose to rule out collections on a Thursday and a Saturday. In effect, the local authority would then have reduced the opportunity for public collections to two days in the week, which is rather less than was intended. The Public Fundraising Regulatory Association has raised concern about that, and I believe that the Institute of Public Fundraising has done so too. I look forward to hearing the remarks of the hon. Member for Isle of Wight on the other amendments.
 
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