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Session 2005 - 06
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Standing Committee Debates
Charities Bill [Lords]

Charities Bill [Lords]



The Committee consisted of the following Members:

Chairmen: Mr. Roger Gale, † Mrs. Joan Humble
Bailey, Mr. Adrian (West Bromwich, West) (Lab/Co-op)
Blackman, Liz (Erewash) (Lab)
Blackman-Woods, Dr. Roberta (City of Durham) (Lab)
Bone, Mr. Peter (Wellingborough) (Con)
Bottomley, Peter (Worthing, West) (Con)
Duddridge, James (Rochford and Southend, East) (Con)
Flello, Mr. Robert (Stoke-on-Trent, South) (Lab)
Goodman, Helen (Bishop Auckland) (Lab)
Horwood, Martin (Cheltenham) (LD)
Levitt, Tom (High Peak) (Lab)
Michael, Alun (Cardiff, South and Penarth) (Lab/Co-op)
Miliband, Edward (Parliamentary Secretary, Cabinet Office)
Todd, Mr. Mark (South Derbyshire) (Lab)
Turner, Mr. Andrew (Isle of Wight) (Con)
Waltho, Lynda (Stourbridge) (Lab)
Watkinson, Angela (Upminster) (Con)
Williams, Stephen (Bristol, West) (LD)
Mrs E. Commander, Committee Clerk
† attended the Committee

Standing Committee A

Tuesday 4 July 2006

(Morning)

[Mrs. Joan Humble in the Chair]

Charities Bill [Lords]

10.30 am
The Chairman: I remind the Committee that there is a money resolution in connection with the Bill, copies of which are available in the room. As a general rule, adequate notice should be given of amendments. I and my fellow Chairman do not intend to call starred amendments, including any that may be reached during an afternoon sitting of the Committee. Given the weather forecast for today, hon. Gentlemen may remove their jackets. I call the Minister to move the programme motion.
The Parliamentary Secretary, Cabinet Office (Edward Miliband): I beg to move,
That—
(1) during proceedings on the Charities Bill [Lords] the Standing Committee shall (in addition to its first meeting at 10.30 a.m. on Tuesday 4th July) meet—
(a) at 4.00 p.m. on Tuesday 4th July;
(b) at 9.00 a.m. and 1.00 p.m. on Thursday 6th July;
(c) at 10.30 a.m. and 4.00 p.m. on Tuesday 11th July;
(d) at 9.00 a.m. and 1.00 p.m. on Thursday 13th July;
(2) the proceedings shall be taken in the following order: Clauses 1 to 6; Schedules 1 and 2; Clauses 7 and 8; Schedules 3 and 4; Clauses 9 to 12; Schedule 5; Clauses 13 to 30; Schedule 6; Clauses 31 to 34; Schedule 7; Clauses 35 to 74; Schedules 8 to 10; Clauses 75 to 78; new Clauses; new Schedules; remaining proceedings on the Bill;
(3) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 4.00 p.m. on Thursday 13th July.
It is a pleasure to serve under your chairmanship, Mrs. Humble. The Committee has the privilege of considering a Bill that will make a real difference to the charities and people of this country. As I said on Second Reading, it has been well researched, having been the subject of the strategy unit report of 2002 and well examined by the Joint Committee. I welcome the fact that the programme motion will allow 20 hours of debate in Committee.
The Government will approach the Bill in a charitable spirit, listen to arguments that are made by hon. Members on both sides of the Committee and take on board those suggestions that make sense and which will contribute toward a better Bill. I am delighted to be ably assisted by my hon. Friend the Member for Erewash (Liz Blackman), the Government Whip. As a former teacher, she will ensure good order and behaviour—at least on our side. The Bill’s scrutiny will be improved by the Opposition spokesmen, the hon. Member for Cheltenham (Martin Horwood), who has direct experience of working in some of our major charities, and the hon. Member for Isle of Wight (Mr. Turner), who is well known for his diligence and attention to detail.
We also have a wealth of wisdom and expertise on the Government Benches, including that of my right hon. Friend the Member for Cardiff, South and Penarth (Alun Michael), the former deputy Home Secretary, and my hon. Friend the Member for High Peak (Tom Levitt), the chair of the all-party group on the community and voluntary sector, and many other talented Members.
We all agree that the proper scrutiny of the Bill is an important service that Parliament owes to the charities of this country, so we on the Government side will keep our contributions short and to the point, so that all clauses of the Bill can be considered properly.
Mr. Andrew Turner (Isle of Wight) (Con): Mrs. Humble, it is a pleasure to serve under your chairmanship. As the Parliamentary Secretary said, the Bill is important and presents a huge number of opportunities for charities. We shall do our best to scrutinise it in an effective manner and not waste time. We are anxious to ensure that it is examined in an even fashion, not least because part 3 was not as vigorously scrutinised in another place as some other parts have been.
As a former teacher, I assure the Parliamentary Secretary that that qualification does not enable anyone to impose discipline on anyone else. It is far more a matter of personality than of former occupation. However, Opposition Members will do their best to scrutinise the Bill in the expected manner.
Question put and agreed to.

Clause 1

Meaning of “charity”
Martin Horwood (Cheltenham) (LD): I beg to move amendment No. 70, in clause 1, page 1, line 9, leave out subsection (2).
The Chairman: With this it will be convenient to discuss the following amendments: No. 1, in clause 2, page 2, line 22, at end insert—
‘(1a) the promotion of the efficiency of the police service or the advancement of welfare for police officers or former police officers and their dependants.’.
No. 2, in clause 2, page 2, leave out lines 26 and 27 and insert—
‘belief in a supernatural principle, being or thing and acceptance and observance of certain canons of conduct to give effect to those beliefs,’.
No. 53, in clause 2, page 2, line 34, leave out paragraph (d).
No. 3, in clause 2, page 3, line 7, leave out subsection (7).
Martin Horwood: Mrs. Humble, I echo the comments of the other Front-Bench spokesmen and express my gratitude for your chairmanship, which I am sure will enlighten what may in some respects be a heated debate. I congratulate the Minister on the tone of his introduction to our proceedings and on his approach to the Bill generally. It is much appreciated. Like the hon. Member for Isle of Wight, I think that, although members of the Committee will undoubtedly disagree on certain matters, the general tone of the debate will be constructive and intended to improve the quality of the Bill.
Amendment No. 70 would remove subsection (2), which seems to lock inconsistency into charity law. That raises a general issue for many charities, particularly those membership and fundraising organisations that often confer minimal benefits, such as newsletters or membership of a scheme, in return for otherwise charitable donations, and which in the past have struggled with numerous definitions of what is and what is not charitable.
For example, let us suppose that a membership organisation or another organisation wished to launch a fundraising scheme—not a formal membership drive, but a fundraising scheme that is designed to attract members and which offers in return some modest benefit, such as visits to premises or a newsletter. The mere fact that it is a charitable organisation would not in the past have been sufficient to convince the Inland Revenue or Her Majesty’s Customs and Excise that the proposed scheme was fully charitable. It would have been necessary for the charity to go through another set of hoops to satisfy the Inland Revenue and qualify for gift aid, and through another, different set of hoops to persuade Customs and Excise that it should not carry VAT.
The merger of Customs and Excise and the Inland Revenue into Her Majesty’s Revenue and Customs seemed to offer the prospect of ironing out that type of inconsistency. That was an encouraging sign of joined-up government, but I talked to a fundraiser the other day who said that, if anything, the situation seems to have got worse since the merger. There is clearly an issue for the Government to address, if not through the amendment then by other means, and I would be grateful for the Minister’s comments.
Amendment No.1, tabled by the hon. Member for Isle of Wight would insert:
“the promotion of the efficiency of the police service or the advancement of welfare for police officers or former police offers and their dependants;”
That is a worthy cause, which should be regarded as charitable and which deserves our complete support. My only slight reservation is that we already have 13 heads of charity. If we added everything that we can think of, we could end up with a list that is hundreds long.
Alun Michael (Cardiff, South and Penarth) (Lab/Co-op): How would the hon. Gentleman support that amendment? As he said, it seems worthy of support, in theory and at first blush, but how would he deal with firefighters, those who man lifeboats and members of similar professions that provide a distinct and special service?
Martin Horwood: That is a reasonable point. However, part of one of the new heads of charity is “the saving of lives”, which might encompass both of the right hon. Gentleman’s suggested examples. On the one hand, the amendment might seem to be over-egging the pudding somewhat, but on the other hand, this is probably the last opportunity that anyone has to add to the list of 13, and I have no problem with making it a list of 14. I would be happy to see the amendment made: it seems harmless if not entirely necessary, given that provisions for analogous charitable purposes might well have allowed the subject of the amendment to pass through as a charitable purpose.
Tom Levitt (High Peak) (Lab): I am intrigued as to whether we are going to have two weeks of debate on amendments promoted on the basis that they are harmless, albeit not entirely necessary. Will the hon. Gentleman clarify that that is not the approach he will be taking to the Bill as a whole?
Martin Horwood: I am grateful to the hon. Gentleman for that intervention, which I am sure was made in the friendly spirit of the debate. In general, we should not seek to add unnecessary provisions, but as I said, this is the last opportunity to add to the list of 13. I see no problem with adding what the amendment proposes.
Amendment No. 2 is much more serious. It would replace the hard-negotiated provision that emerged from another place, which does not seek to define religion but does at least say that religion includes:
“(i) a religion which involves belief in more than one god, and
(ii) a religion which does not involve a belief in a god”.
That is quite an important and thoughtful provision in the Bill as it stands. The hon. Member for Isle of Wight wishes to replace it with what seems to be an attempt to define religion—a brave thing for a politician to do. However, there are many examples of religions that might not pass the test set out in the amendment.
Belief in a god is not the only critical factor in a religion. Many religions regard the universe and everything in it, including any beings such as gods or deities, as within nature and one part of a whole. Theravada Buddhism, Taoism and, arguably, many disciplines within Hinduism might present their beliefs as “all within nature”, so to them the idea of anything being supernatural would be meaningless. Amendment No. 2 would therefore be difficult for many eastern religions to accept.
I suspect, however, that the amendment is aimed not at eastern religions but at those people who have no belief in God. The important element of the amendment may be its removal of the reference to
“religion which does not involve belief in a god”.
In other words, it is aimed at those secularists and humanists who have religious instincts but do not believe in a deity. According to the last census, 17 per cent. of my constituents fall into that category. It is not for us, using the Charities Bill, to say that according to our definition such people do not have a religious belief. Humanists have strong ethical and moral positions on many issues and canons of conduct derived from moral and philosophical beliefs. To deny that they are religious in the same sense as people who happen to believe in a deity is insulting to their beliefs. They have a sense of awe and wonder at the universe and the natural world and take great inspiration from the majesty of nature and its processes. That they do not fall into the hon. Gentleman’s category of having
“belief in a supernatural principle”
does not mean that they are not religious in the sense that the Bill is trying to suggest.
Even some parts of the Church of England might have a problem with the amendment. Some dioceses might take issue with having to believe in a god as defined in the Bill. I can imagine a diocese losing its charitable status one day after the bishop reflects on his theology course and decides that he does not believe in God after all, or at least not in the sense that is popularly intended.
Many organisations, including devout religious organisations such as the Association for British Muslims, are perfectly happy with the current phraseology. The association wrote to me and, I suspect, to other hon. Members to say that the clause will remove the requirement that religion, in charity law, necessarily involves worship of a supreme being and will open the way for religion to be interpreted broadly and on international human rights principles. Before the Bill left the House of Lords, Lord Bassam accepted that worship was not a necessary component of religion in charity law. According to the Association for British Muslims, that appeared to be a satisfactory conclusion to the definition question, and the association went on to query the Charity Commission’s intentions in respect of implementing the clause sufficiently liberally.
The clause, which has commanded widespread support, was the subject of thoughtful negotiation. We should not overturn it hastily in favour of the idea of a supernatural principle, which is open to a lot of interpretation.
James Duddridge (Rochford and Southend, East) (Con): I am unclear whether the hon. Gentleman’s main problem is with the deletion of lines 26 and 27, or with the insertion of the wording proposed in the amendment. The wording comes from Australian law, where it is used quite satisfactorily.
 
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Prepared 5 July 2006