Charities Bill [Lords]


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Mr. Turner: I do not want to detain the Committee, for obvious reasons, but one issue about international activity by charities that has been drawn to my attention—and to which the Minister might slip in a response in replying to the debate—is the extent to which the commission has a duty to ascertain that money raised in this country for charitable purposes is spent for charitable purposes overseas. We know that that is the duty of the charity and of the commission; the question is whether they have the capacity to discharge it.
I am concerned because of allegations, of which I am sure Ministers and hon. Members are aware, that some religious charities in this country remit considerable funds overseas, where they are spent for purposes that are only borderline religious, at least in the sense that that is understood in the United Kingdom.
Martin Horwood: I am grateful to the hon. Member for Worthing, West for raising this difficult and serious issue. Things are difficult, partly because the example that the correspondence has raised seems to rest on the territorial nature of the charity. Geographical restriction as a principle is well established in charity law as a perfectly legitimate restriction that would not contradict public benefit. To introduce a new clause that appears to detract from the commission’s ability to judge public benefit on a broad basis seems to narrow the commission’s remit.
Although I am sympathetic to the new clause, it opens a door to further attempts to define more narrowly, in ways outside the public benefit test, exactly how the commission behaves. However, the issue is serious and I should like a reassurance from the Minister that, under his interpretation of the Bill, charities that engaged in activities that fell short of human rights standards would not pass a new public benefit test, and that activities undertaken overseas that are widely accepted as being charitable—in the case of Oxfam and many others that is well established—but which fall short of proper human rights standards should not pass the public benefit test either.
Edward Miliband: This is a fitting new clause to discuss in our last debate. The hon. Member for Worthing, West has raised a complex but important subject, although I shall not be able to give a substantive and definitive answer today, because the issues are incredibly complex and involve many parts of government.
Mr. Flello: The hon. Member for Worthing, West was unable to clear the fog over whether those on the Opposition Benches wish to get rid of the Human Rights Act 1998. Will my hon. Friend the Parliamentary Secretary consider the additional costs that would be incumbent on a charity when looking at the legal implications of making sure that it was complying with the Human Rights Act each time that it did something?
Edward Miliband: My hon. Friend makes a fair point. We must bear in mind three issues. First, such a proposal would require quite detailed investigative action by the commission. Secondly, that action would be outside Great Britain and, thirdly, there is much wider issue about the extent to which non-state actors are subject to the European convention on human rights.
Let me deal with each issue briefly. Of course, the commission has investigative powers and can exercise them, although the sort of investigation that would be involved when making a judgment about human rights standards would be incredibly complex. Without going into a particular case in detail, it is clear from the new clause that the issues involved would be extremely deep and complicated.
The second issue is the power of the Charity Commission outside Great Britain. It can visit other countries to look into allegations, but its staff cannot exercise any powers outside England and Wales. Its powers of investigation under the Bill are confined to England and Wales. That limits its ability to investigate outside the United Kingdom in the way suggested under the new clause, although it can, of course, hold trustees in England and Wales fully accountable for the charity’s activities.
I come now to the third and most fundamental issue, which is the extent to which the ECHR applies to non-state actors. For most purposes, a charity would not usually be subject to the Human Rights Act, which places a duty on public authorities not to act incompatibly with the convention rights. It is possible that a charity could be a public authority were it to be exercising a public functions, such as the provision of publicly funded care. However, it would be extremely unlikely ever to be exercising such a function overseas.
The new clause would be a new departure because it would place obligations on a charity not necessarily in its role as a public authority to comply with the ECHR. That is the Government’s view of the new clause. However, given its importance, the lucid way in which the hon. Member for Worthing, West presented it and the distinguished nature of those who have contacted us, it deserves a more substantive reply than I have been able to give. I shall endeavour at least to report back to the Committee in some form or another on our view. Obviously, the matter can be raised on Report.
Mr. Turner: We must be aware of two issues, the first of which concerns when remittances are made outside the United Kingdom or England and Wales. I do not know what powers the commission has in respect of Scotland and Northern Ireland. Should the trustees be expected to demonstrate a higher level of awarenessin such circumstances so that they can show the commission that money has been properly spent than would be the case if that money were spent in England and Wales?
The second question impinges on that. I believe that I am right in saying that a charity may currently have objectives for a particular racial or ethnic group. Were such an amendment accepted, would it have an effect on certain existing charities in England and Wales?
Peter Bottomley: The Minister may find that the issue should be dealt with by written statement or on Report. We have nearly finished our work so he will not be able to come back to the Committee. In passing, may I say to the hon. Member for Stoke-on-Trent, South (Mr. Flello) that I was advised, at the time that I was first elected, that bringing up a straightforward party point in the middle of a serious debate does not always carry the reputation of the Committee forward?
The Minister has dealt fairly with my points. He may have added some additional ones, because my new clause does not refer to extraterritoriality, though the example behind it is there. I fully understand the reluctance of the Charity Commission to be bound up in investigating things that may have happened—they did happen in one particular case 50 years ago—in the middle of one of the most complex areas of pain and disorder that one could imagine. Even if what I am proposing is right and acceptable, I can see that there would be arguments of practicality. For instance, what would it open up in terms of consequence? At the moment, however, there remains the question of what is right.
I should perhaps declare that I think that I was a fellow trustee with Benedict Birnberg on the Canon Collins Educational Trust for Southern Africa—the follow-up to the Defence and Aid Fund for Southern Africa. The Defence and Aid Fund was not charitable, but the Canon Collins trust was. What has been said by Benedict Birnberg and his colleagues and the way that the new clause has been proposed do not necessarily open up many of the problems that have been discussed in our brief debate. Will the Minister consider whether the approach in the new clause is right, proper and useful, and whether it is controllable? I know that he is not committed to accepting it, but I should be grateful for his reflections. I beg to ask leave to withdraw the motion.
Motion and clause, by leave, withdrawn.
Question proposed, That the Chairman do report the Bill, as amended.
Edward Miliband: On a point of order. Mr. Gale, I want to say some thank yous. This is as close as I shall get to the Oscar ceremony, but I promise that my speech will not be as long as those at the Oscar ceremony—although as I understand it, I have until9 o’clock.
Let me start by thanking the Doorkeepers, the police, the Clerk and the staff of the Committee for their hard work during the last two weeks.
Peter Bottomley: And the official reporters.
Edward Miliband: And the official reporters—I am extremely grateful to them for their work and dedication to their job. I also thank my officials, led by Richard Corden. I can reveal to the Committee that he has had the privilege of working in the strategy unit on the report that led to the Bill, then going to the Charity Commission to reply to the Bill, and then coming into Government to implement the Bill—a real hat trick. He has ably led what is a very able team of officials.
I also thank the members of the Committee. On my own side there was a glittering array of talent. They have engaged very much with the Bill—mainly constructively. My hon. Friend the Member for Bishop Auckland (Helen Goodman) had 11 amendments of her own, which showed her reputation for independence. My right hon. Friend the Member for Cardiff, South and Penarth has brought his great expertise to the subject and to the Committee, and I am very grateful to him.
My hon. Friend the Member for High Peak (Tom Levitt) has coined a new principle, which I expect will endure beyond this Committee. I am grateful to all Members of this Committee, especially my hon. Friends the Members for City of Durham (Dr. Blackman-Woods) and for West Bromwich, West (Mr. Bailey) who have been extremely kind to me. Most importantly, my hon. Friend the Member for Erewash (Liz Blackman) has kept me in order as I predicted that she would do.
3.45 pm
Let me also pay tribute to some notable contributions on the other side, including the hon. Member for Worthing, West and the hon. Member for Cheltenham who has asked me many difficult questions to which I have not known the answer. I also pay tribute to the hon. Member for Cheltenham who has brought good humour and a new principle to this debate and to the hon. Member for Isle of Wight who has brought his considerable talents and assiduousness to the work of this Committee. Finally, thanks to Mrs. Humble and to yourself, Mr. Gale, for your stern, but fair, chairmanship. Finally, I think that we have met the two principles of being a charity: charitable purpose and public benefit. I thank all members of the Committee.
Mr. Turner: Further to that point of order, Mr. Gale, may I endorse the remarks of the Parliamentary Secretary? I am grateful to those whom he has mentioned and my failure to repeat them individually is not an indication that I am not genuinely grateful to them. I am also grateful to him for his forbearance on occasions, assistance on many occasions and genuine agreement and attempt to reach consensus wherever possible on the further proceedings of this Bill.
I am grateful to my hon. Friends and in particular, my hon. Friend the Member for Upminster (Angela Watkinson) for her assistance, to my hon. Friend the Member for Worthing, West for the great knowledge that he has brought to the Bill and to my hon. Friend the Member for Cheltenham in providing a useful “butt”. I also acknowledge the support of my research assistant. I think the job of a virgin Front Bencher depends heavily on the assistance of their research support.
I am grateful to the officials of the Charity Commission which has responded to my frequent letters, and to the hon. Gentleman’s predecessor, the Under-Secretary of State for Northern Ireland, the hon. Member for Wythenshawe and Sale, East (Paul Goggins) for having been quick to respond to my many inquiries.
Martin Horwood: Further to that point of order, Mr. Gale, I would like to add my thanks to yourself and Mrs. Humble for the firm but fair way in which you have regulated us. My thanks to the Clerks and the officials, both those who are present and those in the Minister’s office who have worked hard behind the scenes to help the Committee proceed.
The spirit in which this Committee has undertaken its deliberations is in contrast to my only other experience of a Bill in Committee, which was rather more confrontational, less humorous and less constructive. The Bill will be received well by the voluntary sector. The spirit in which the Bill has proceeded as a piece of legislation is exemplary. The Minister’s tone and attitude in responding and listening to the points that we made in a serious way reflected well on him.
I pay credit to my researcher, Jake Rigg and the hard work that he and Elizabeth Fosten have done in my office to try and take me as a fellow Committee virgin through this process. I am grateful to the hon. Member for Isle of Wight for describing my “butt” as useful. I will try and think of a comparable comment for him. I take it in the spirit in which I assume that it was meant. Finally, I thank the hon. Member for High Peak for recognising that Cheltenham is indeed a town that deserves its own principle.
Peter Bottomley: Further to that point of order, Mr. Gale, if Back Benchers are allowed to join in this exchange of thanks and praise, I am glad that the Minister referred to those who backed him up—those in his Department and the Charity Commission. However, I do not think that we have mentioned trustees or the charity lawyers who give them guidance. They deserve to be mentioned for their attention to what has gone on, not just in Committee, but in previous years. The lawyers will also be helping trustees when the Bill comes into force.
The way in which the Front Benchers have led the debates has been exemplary. I say to the Minister, in the hope of doing his party as much damage as possible, he deserves his place on the Front Bench and the sooner that he gets into opposition and lets us take over his role, the better.
Tom Levitt: Further to that point of order, Mr. Gale, I never thought that I would rise, accused of having said that Liberals have principles. I know that the Cheltenham principle will be forever with us and brings a warm glow to the heart of my hon. Friend the Member for West Bromwich, West, who is a native of Cheltenham.
On a serious note, I do not expect that on Report we will bring too much controversy or dissent. Over the four days of our work, we have witnessed a serious and timely updating of charity law which, as we know, has been with us for 400 years. I believe that the importance of the voluntary and community sectors, and the third sector generally, is in logarithmic phase at the moment and is of ever increasing value and importance. I am proud to have served with colleagues on both side of the House in taking the matter forward.
 
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Prepared 14 July 2006