Charities (Protection and Social Investment) Bill [HL] — House of Lords, 2015-06-10
Topic: Social Welfare
Dianne Hayter (Labour, Centre-left): My Lords, it is a great privilege as well as a great pleasure to have heard the Minister’s maiden speech—I assume, in this case, written by himself—and to welcome him as a trustee of the Foundation Years Trust, a charity that aims, as he said, to develop and action the findings of Frank Field’s review of poverty, a review that was set up to prevent poor children becoming poor adults. The noble Lord’s work at Santander and Quiller Consultants, which advises multinational companies, may be slightly less relevant to this Bill, but we hope that it will be of use to him on his other portfolio. However, the experience that the House might appreciate most is indeed his time as a political secretary at No. 10, so if anyone can find his way around Whitehall, we trust that it is him. However, what my party would like is some of his political nous. Not only was he involved in the perhaps unexpected 1992 election victory, but a year ago he placed a bet on an overall Tory majority in 2015 of 12. So I congratulate him on his flutter and indeed on his assured maiden over at the crease. We wish him well in the tasks ahead Perhaps I may also pay tribute to the noble and learned Lord, Lord Hope of Craighead, on his pre-legislative Joint Committee report, and to the committee members, including my noble friend Lady Warwick of Undercliffe, who unfortunately cannot be with us today but I know will play an active role later in our proceedings, and my noble friend Lord Watson of Invergowrie, who joins me on the Front Bench for this Bill, along with my noble friend Lord Kennedy of Southwark I turn now to my own declaration of interests. I have been the chief executive of two charities and the director of corporate affairs of the country’s largest one. I have been the chair of a small charity and I remain a trustee of two. It will therefore be no surprise that we support independent charities, harnessing as they do philanthropy, volunteering and social commitment. We celebrate the million trustees who give of their time, expertise and dedication to help make Britain a kinder, more interesting and caring society I hope that the Minister will be relieved to know that the Bill poses us no problems, and we are content to support its Second Reading. But there are some additional powers for the Charity Commission, and responsibilities for charities that should be added Let me start with a concern arising from the recent lobbying Act—it is before the Minister’s time, so he does not have to take the pain for this—which undermines the freedom of charities to speak out on behalf of beneficiaries. I was moved by the maiden speech of the right reverend Prelate the Bishop of Leeds last week, when he quoted from the Book of Proverbs: "Open thy mouth for the dumb", or, in his words, "give a voice to the experience of those who otherwise are silenced".—[Official Report, 1/6/15; col. 209.] That is what charities have long done, but the Government sought to curtail that in the lobbying Act. We will seek to spell out in the Bill the common-law position permitting charities to speak out on issues in line with their objectives. This will give confidence to trustees that they are free to further their objectives in this way. We are not against the right to buy, but we query the Government’s plan to force housing associations to sell their assets, against their will, regardless of their trust deed, their source of funds or the decision of their trustees. Ninety per cent of housing associations are charities and their property is not state property, so it is not the Government’s to dispose of. It is private property; it may have been donated for a particular cause, such as providing homes for autistic or disabled people, the retired, the homeless, recovering substance abusers or, indeed, a religious community; or the property might be built on rural exception sites in the National Planning Policy Framework, intended for affordable housing in perpetuity. Not only might it be a breach of covenant to use these assets for other purposes, but once sold and resold a sheltered block or a therapeutic or supportive community could be broken up as new private owners or tenants of buy to let with different lifestyles move in Charity assets are preserved by legislation for public benefit and may be used only for the purposes defined in the charity’s trust deed. Furthermore, charity law requires a charity to dispose of its assets in furtherance of its charitable objectives, and that does not mean simply for money. Indeed, the second part of the Bill, which the Minister has outlined, allows charities to use their funds as social investment, and we welcome this. Funds will also be used in the provision of homes for the homeless. But that will be completely undone if such homes have to be sold off, and then no doubt resold, as the owner can cash in on the Government’s subsidy There are small almshouses, there are "supporting people" charities, and there are large charities such as Peabody—150 years old, with 27,000 homes and its own Act of Parliament. Its chair has said: "Peabody’s assets belong to us. They are not the government’s to sell" All are governed by charity law, based on principles dating from Elizabethan times to preserve charitable assets. Do the Government propose to amend charity law so as to override the trust deed or trustees’ wishes in order to implement their policy The Bill will rightly exclude people who have supported terrorism from being trustees, as well as people involved in money laundering or just subject to an IVA. But the Bill does not exclude people convicted of serious sexual offences; they would be debarred only after a complaint to the Charity Commission, leaving the responsibility for checking with other trustees, who may themselves have been involved in such activity or, if completely innocent, be unaware of the background of a new trustee. This cannot be right when charities have access to children or others with vulnerabilities. We want the Bill to add being on the sexual offences register to the automatic exclusions, which will still be subject to the normal waiver provisions We will also look to strengthen the Bill so that vulnerable people and children are properly protected. There are some worrying cases where charities become closed shops when abuse is uncovered. The Charity Commission should be able to investigate the fitness of trustees and consider replacing them where the charity fails to deal with abuse allegations. It is surely right for the commission, in regulating trustees, to have a duty to safeguard and protect children and vulnerable adults. Suspected child abuse should be as big a red flag as suspected financial misconduct. Could the Minister let us know the Government’s thinking on this issue Your Lordships will be aware of the tragic suicide of Olive Cooke, a 92 year-old poppy seller.