Charities Bill [Lords]


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Clause 53

Grounds for refusing to issue a certificate
Amendment proposed: No. 148, page 59, line 23, leave out from ‘inadequate,’ to end of line 24 and insert
‘having regard to all circumstances.’.—[Martin Horwood.]
Question put, That the amendment be made:—
The Committee divided: Ayes 4, Noes 10.
Division No. 9]
AYES
Horwood, Martin
Turner, Mr. Andrew
Watkinson, Angela
Williams, Stephen
NOES
Bailey, Mr. Adrian
Blackman, Liz
Blackman-Woods, Dr. Roberta
Flello, Mr. Robert
Goodman, Helen
Levitt, Tom
Michael, rh Alun
Miliband, Edward
Todd, Mr. Mark
Waltho, Lynda
Question accordingly negatived.
Clause 53 ordered to stand part of the Bill.
Clauses 54 to 59 ordered to stand part of the Bill.

Clause 60

Refusal of permits
Question proposed, That the clause stand part of the Bill.
Helen Goodman: I know that my amendment No. 143 has not been put on the selection list, but I wonder whether the Minister could clarify how clause 60 will work. Professional fundraisers are concerned that, because it is so tightly drafted, from time to time in some places, it would be possible for a local authority to restrict fundraising to two days a week. Is he aware of that, and could he and the lawyers examine the technical drafting of the clause before it comes back on Report?
The Chairman: Before I call the Minister, could I point out to the hon. Lady that her amendment was grouped with amendment No. 144? As we have had the debate on the amendment, I would ask the Minister to respond to the clause stand part debate.
Edward Miliband: I will be brief. My hon. Friend was lucky enough to be let off at 6 o’clock on Tuesday. She will see from the record that I spoke in some detail about the issue, but I would be happy to discuss it with her outside the Committee.
Question put and agreed to.
Clause 60 ordered to stand part of the Bill.
Clauses 61 and 62 ordered to stand part of the Bill.

Clause 63

Regulations
Martin Horwood: I beg to move amendmentNo. 153, page 69, line 5, leave out ‘or (3)’.
The Chairman: With this it will be convenient to discuss amendment No. 154, page 69, line 5, leave out ‘or (b)’.
Martin Horwood: Amendment No. 153 is consequential on amendment No. 154, which seeks to leave out the words “or (b)” that refer to subsection (1)(b), which deals with regulations that the Secretary of State may make
“for the purpose of regulating the conduct of public charitable collections”.
We do not seek to delete the paragraph—it is an important part of the structure of the clause as a whole—but we seek to remove the reference in subsection (4) to its generality not being restricted by anything else in the clause. In effect, the amendment would restrict the power of the Secretary of State to make regulations willy-nilly in whatever way he chose.
10.15 am
Although we trust that the Secretary of State and his parliamentary colleagues are generous souls, it seems that subsections (2) and (3) set out a comprehensive and legitimate list of the matters that may be prescribed by regulation, and the provisions that may be made. They refer to such sensible things as the areas in which the appeal can be conducted, the keeping of accounts and the prevention of annoyance to the public. I question whether the Secretary of State needs much wider powers, as granting them makes almost superfluous the powers granted in subsections (2) and (3).
Edward Miliband: Believe it or not, Donald Rumsfeld is able to help us. He talked a few years ago about known unknowns. He said that we know that there are some things that we do not know. The hon. Member for Cheltenham asks a legitimate question. He wants to know what it is that might not be contained in subsections (2) or (3) for which the Secretary of State would want to prescribe regulations. The truth is that we do not know. If we knew, it would be included. The question is therefore why we need the power.
The hon. Gentleman was formerly involved in the process of public fundraising, if not as an “Ã1/4berchugger” as I alleged earlier. He will know that we need the power because the way in which public fundraising takes place is rapidly changing. For instance, direct debit fundraising essentially did not exist 10 years ago. The only reason for these provisions is that they provide for flexibility in the prescribed regulations, so that if the process of public fundraising changes and it is thought to be necessary to take action in order to preserve public confidence on matters that fall outside subsections (2) and (3), we will have the flexibility to do so without recourse to primary legislation.
As I say, I cannot describe the ways in which public fundraising might evolve, or what regulations might be necessary; if I could, they would be defined in subsections (2) and (3). I know that that makes life rather difficult, but even if my observations included mention of Donald Rumsfeld, I hope that the hon. Gentleman will withdraw the amendment.
Martin Horwood: I cannot help thinking that hon. Members and those in another place may have enormous fun reconstructing the Minister’s suggestion that known unknowns should be the proper basis for legislation, and citing Donald Rumsfeld as an authority. He might find that lawyers will challenge the idea that it is a proper basis for legislation. I certainly would. However, I am somewhat reassured that his intent is benign.
Although the Minister’s reference to fundraising being a fast-moving discipline is right, public charitable collections are probably the least fast moving of all. The way in which fundraising is done—whether with cash, direct debits or standing orders—may have evolved over the past 10 or 15 years, but the nature of public collection itself has hardly changed in 100 years. Nevertheless, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 63 ordered to stand part of the Bill.
Clauses 64 to 66 ordered to stand part of the Bill.
The Chairman: Opposition Front Benchers have said that they would find it convenient to combine the debates on clauses 67 and 68 and the amendments to them accordingly.

Clause 67

Statements indicating benefits for charitable institutions and fund-raisers
Mr. Turner: I beg to move amendment No. 128, page 71, line 14, at end insert—
‘(6) After subsection (9) insert—
“The Charity Commission shall have power to initiate criminal proceedings in respect of offences under subsection (9).” ’.
The Chairman: With this it will be convenient to discuss the following: Clause stand part.
Amendment No. 131, in clause 68, page 73, line 22, at end add—
“60C Fundraising by sale of products and services
(1) Save in the case of small outlets, where the sale of any goods or service is represented as benefiting a charity or charities, the vendor shall indicate either the proportion or the amount of the sale price which will be passed to the charity or charities for their unrestricted benefit.
(2) Indications under subsection (1) above may be made in diagramatic form, and shall be made in writing, the font-size of which shall be no smaller than the price of the goods or service.
(3) For the purpose of this section, a “small outlet” is an organisation which is not obliged to register for Value Added Tax purposes.”.’.
Clause 68 stand part.
Mr. Turner: When we arrived this morning, it was fair to say that the sun had got his hat on and we all hoped that later on we could come out to play. The sun has, I am afraid, taken his hat off and hidden behind a cloud. Let us hope that he comes out again later. It is pleasing to see you, Mrs. Humble, once more in your place, if only for a few more minutes.
I am grateful that the two clauses have been brought together because that will make for a shorter debate. I give notice that I might wish to press amendment No. 131 to a Division.
Amendment No. 128 gives the Charity Commission the power to initiate criminal proceedings in respect of offences under subsection (9). The reason for that is that in the past—there are a number of specialised offences here—the Charity Commission has had the power to take action against charities. However, it was not necessarily the charities who were offending. Sometimes an organisation that is not a charity purports to be one. The provision would give the Charity Commission the power to enforce criminal sanctions in respect of clause 60 of the Bill. That may not be the most appropriate body for the task; it might be appropriate for sanctions to be enforced by trading standards or a similar organisation. That is by nature of a probing amendment and I will welcome the Minister’s view on that.
Amendment No. 131 is a requirement for information to be given, when goods or services are offered for sale purportedly for the benefit of a charity, about the amount of money that is going to that charity. It adds a new section 60C to the 1993 Act. It exempts small outlets. I can see the hon. Member for Bishop Auckland shaking her head. I am sure that we will have an interesting debate on that.
Christmas cards are one example of goods that are quite frequently offered for sale, supposedly for the benefit of charity. I refer to a 5 November report from The Guardian. It is relevant that it is Guy Fawkes night on this day of all days. Hon. Members might wish to consult the Guido Fawkes blog to find out more about why I have said that. However, The Guardian said:
“Britain’s high street retailers are selling charity Christmas cards which give as little as 4p in every £1 to good causes. A survey by Guardian Money reveals that John Lewis Partnership and Fenwick as the stores which give least, with one card on sale in Fenwick’s swanky Bond Street store”—
it has descended to the level of The Sun in that—
“giving just 1p to an arts fund...Card Aid...names John Lewis as ‘Scrooge of the year’. Clinton Cards topped the survey by promising to pass on 25 per cent. of the (pre-VAT) price on its charity cards.”
That is a matter of some concern. How much money from a service or a good that is offered for sale by a high street outlet—although not only a high street outlet and I have specifically exempted small outlets—goes to charity?
In 2004, the average charity Christmas card sold for 64p of which only 5p went to charity. Boots have a standard flat rate of 10p—
It being twenty-five minutes past Ten o’clock, The Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till this day at One o’clock.
 
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