Memorandum from the Institute of Licensing
(DCH 61)
1. The Institute of Licensing (formally
the Local Government Licensing Forum) consists of nine geographical
Regions with approximately 350 Local Government Licensing Members
and a growing number of other Non-Local Government Licensing Professional's
throughout England & Wales. The IoL comprises a variety of
members from a wide range professional backgrounds (eg Licensing
Officers, Barristers, Solicitors, Committee Clerks etc) and seeks
to provide a network of contacts and local meetings to exchange
information, give mutual support, provide training in licensing
matters and to develop to act as a collective, respected and powerful
voice at government levels on areas of common concern and interest.
The Institute of Licensing (IoL) meets nationally twice a year
with an AGM in March and a four-day Conference and Training Seminar
in November.
2. The IoL, in association with the University
of Birmingham's School of Law, launched the Certificate of Higher
education in Licensing Law in 2001, which has been formally recognised
and endorsed by the LGA. In January 2002, the IoL, in conjunction
with The Association of British Theatre Technicians (ABTT) and
The District Surveyors Association (DSA) published the Model National
Standard Conditions for Places of Entertainment and Associated
Guidance. Looking to the future, the IoL currently has Working
Parties developing Model Conditions for Hackney Carriage/Private
Hire licensing and looking at the Alcohol and Entertainment Licensing
Bill and have been involved in Home Office Working Parties with
regards to the "Private Action, Public Benefit". A Review
of Charities and the Wider Not-for-Profit Sector, a Strategy Unit
Report—September 2002 and the new Gambling Reform.
3. The IoL welcomes the Draft Charities
Bill believing that such reform is necessary and long overdue.
Realistic measures have been put in place to ensure that the legal
and regulatory framework is up to date and workable. The provisions
laid down for compliance will combat illegal collections and hopefully
help eradicate fraud and deception providing a better climate
for legitimate charitable collections, thus increasing public
awareness and restoring public confidence. The IoL believe that
this Draft Bill will help to promote and facilitate an environment
in which the charitable sector can operate successfully.
4. In response to the Draft Bill the IoL
should like to put forward a response which focuses only on Part
3 therein and more specifically sections 65 to 69, with six observations
made thereunder, these being most relevant to our Members' work
and responsibilities.
5. It would be deemed helpful if one consolidated
Bill was provided as currently the Draft is difficult to follow
and confusing to read.
65A—CHARITABLE
APPEALS THAT
ARE NOT
PUBLIC CHARITABLE
COLLECTIONS
65A(1)—A charitable appeal is not a public
charitable collection if the appeal:
(d) is an appeal to members of the public
to give money or other property by placing it in an unattended
receptacle.
6. Although this is not seen as an issue
throughout England and Wales with regards to the legitimacy of
unattended receptacles, for example cash collection containers
within licensed premises, stores or takeaways. It has however
been identified as a growing concern with clothing banks and recycling
bins which are placed indiscriminately across the country in supermarket,
public house and Local Authority carparks without prior permission.
7. Although these are not caught by current
legislation the ambiguous wording on such recycling bins and the
position of the bins causes great concern. It is alleged that
the bins are often placed next to legitimate registered charity
recycling bins and has been the cause for concern with several
of the large charities registered in England and Wales. Although
it is difficult to estimate the amount of money generated from
these receptacles, enquiries have estimated that an estimated
figure for 200 such bins from one company will generate an income
in excess of approximately £468,000 per annum.
8. It would be extremely helpful to incorporate
such receptacles within the Draft Bill to ensure that profits
made from such collections reach the intended charities and are
not used as a tool to provide profit to non charitable organisations.
66A—RESTRICTIONS
ON CONDUCTING
DOOR TO
DOOR COLLECTIONS
66A(2)—Subsection (1) does not apply to
a door to door collection which is an exempt collection in relation
to the area the authority by virtue of:
(b) Section 66C (door to door collection
of goods).
66C—EXEMPTION
FOR DOOR
TO DOOR
COLLECTION OF
GOODS
66C(1)—A door to door collection is an exempt
collection in relation to the area of a Local Authority if:
(a) the appeal is for goods only, and
9. Severe concerns are raised with the exemption
of door to door collections when requesting goods, especially
collections of clothing and other personal chattels.
10. Clothing collections generate a huge amount
of money and are exploited by large organised non charitable cartels
whom undertake these collections across England and Wales. Predominately
areas within England and Wales are targeted and saturated with
flyers requesting clothing predominately for purported Eastern
European causes, often collecting any goods left for legitimate
charitable house to house collections such as British Heart Foundation,
Oxfam, PDSA etc.
11. It is estimated that for every tonne
collected and sorted by hand, organisations purporting to be "Charities"
can sustain an extremely high income. Clothing and other goods
are sold either for rag for flocking or wiping cloths at approximately
£150-£200 per tonne, with the quality used clothing
and accessories sold in either the Eastern Block at approximately
£550 per Tonne or in Africa at approximately £600 per
tonne.
12. Within Local Authorities that actively enforce
legislation the largest charitable fraud is undertaken through
these unlicensed house to house collections of clothing and other
goods. As an example it is estimated that within the Leeds Metropolitan
District Council each collection of goods (involving only two
persons and one vehicle to undertake the collection) generates
on average £3,500 per week, providing an income of £14,000
per month and an annual income of £169,000 per year. These
purported "charitable organisations' are not registered with
the charities commission and actively operate across the country,
often involving illegal immigrants or those on state benefits.
The organisations have actively been prosecuted under the relevant
charitable legislation in connection with Local Authorities and
Trading Standards across England and Wales but continue to move
from city to city.
13. This section of the Draft Bill causes
great concern for the whole ethos behind the proposals and will
certainly undermine all efforts made to try and eradicate this
type of collection. Not only will this jeopardise the legitimate
charities income through such collections but will inevitably
increase the capability of such organisations to ensure an unauditible
income on an annual basis.
14. I can confirm that the IoL do wholly
agree that the legitimate collection of goods does not necessarily
impinge on issues of capacity within Local Authorities. It does,
however question the issue of the promoter notifying the Local
Authorities prior to the collection. This in itself raises concern
as this is only an obligation and not a statutory requirement.
66D—APPLICATIONS
FOR CERTIFICATES
15. As commonly known as the "Lead
Authority Concept" where the promoter will have to apply
to the Local Authority for the "Certificate of Fitness".
As stated in the case of a registered charity, application would
be made to the Local Authority dependant on the charities principal
address as registered with the Charities Commission.
16. Concerns have been raised within the
London Boroughs (not taking into account the City of London) as
the main Charitable bodies are predominately registered within
these areas. Particular concerns have been raised with regards
to the hand over of this function from the Metropolitan Police
to the London Boroughs. The Local Authorities with the least experience
of licensing public collections will have the greatest responsibility
laid upon them. Also regulatory impact on resources within the
London Boroughs has been assessed and it is estimated that additional
costs to administer the scheme would be approximately £103,583
per annum. This has not taken into consideration the financial
burden of administration for the Professional Fundraising Organisations,
of which currently 64 PFRA members are situated within London
and 21 of which based in Islington.
17. The Draft Charities Bill does not indicate
that a fee will be imposed for the administration function of
issuing the "Certificate of Fitness". This will place
an extra burden on the London Borough's whom have not previously
dealt with this function. It is however noted that funding would
be made available to cover the cost of new duties which would
fall to them under the new proposals—where would this funding
evolve from and how would it be calculated.
18. It would also like to be noted that
Local Authority licensing of the current legislation is inconsistent,
Authorities have the choice of whether they wish to adopt the
legislation. This may also place an administration burden on Local
Authorities outside of London but clearly not on the same scale.
66E—DETERMINATION
OF APPLICATIONS
AND ISSUE
CERTIFICATES
66E(1)(a)—On receiving an application for
a certificate under section 66D in respect of any proposed public
charitable collections, the local authority
(a) must consult the chief officer of police
for the police area which comprises or includes the area of the
local authority, and
19. Concerns have been raised over the resoucing
issues with the local police authorities and the time implications
for the chief of police to vet the applications to a suitable
standard. Clear guidance needs to be in place to ensure consistency,
transparency and proportionality across the police forces situated
in England and Wales.
66(G)—WITHDRAWAL
ETC OF
CERTIFICATES
20. It should be stated that Local Authorities
have an obligation to pass on information to lead authorities
with regards to offences committed under the Act with due regard
to this section and the initial grant of the "Certificate
of Fitness".
CAPACITY AND
NUISANCE
21. Although it is stated that all criteria
covering issues of "capacity" and "nuisance"
will be covered in separate guidance notes, this document will
not be statutory guidance. The facility for Local Authorities
to use the guidance and determine local regulations as Section
5, Police, Factories, etc (Miscellaneous Provisions) Act 1916
permits would be of great benefit. This would ensure that the
issue of capacity and nuisance is addressed at a local level and
would be deemed appropriate for the area.
May 2004
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