Gudgeon Bill: Charities Bill — Second Reading Instruction to Committee In Committee Third Reading 
Gudgeon Bill: Charities Bill — Second Reading Instruction to Committee In Committee Third Reading 
[Volume:625;Page:19945] 
BILL GUDGEON (NZ First) 
: 
 Taking into consideration the serious concerns of the many charitable organisations throughout the country New Zealand First supports the intent of the bill. Clause 15 disqualifies a number of classes of people from serving as officers. New Zealand First supports in particular the exclusion of people who have been convicted of an offence punishable by a term of imprisonment of 2 years or more or of 2 years or less when a person has been sentenced to imprisonment. 
The Charities Bill establishes a new Crown entity the Charities Commission responsible for running a registration reporting and monitoring system for charities. It is also important to note that only those charities that are registered with the commission will be able to retain or gain tax-exempt status while any unregistered charities will not be income tax exempt. That will ensure that the sector becomes more accountable and transparent to the donating public and that fraudulent activities can be eliminated. 
New Zealand First believes that this bill will assist in the ongoing provision of important services to the community that confidence in the charitable sector will increase as a result of the activities of the Charities Commission and that this confidence will encourage the Government to consider a more generous tax rebate. 
What is the definition of “charitable purpose”? Part of the criteria for registration as a charitable entity is that the entity must be maintained for charitable purposes. The bill defines “charitable purpose” as including every charitable purpose whether it relates to the relief of poverty the advancement of education or religion or any other matter that would contribute positively to community advancement. 
The commission will have a number of enforcement powers available to it to address any situations involving deregistration. In the first instance the commission is more likely to use its lesser enforcement powers or its education function to encourage and help the charitable entity to comply with its obligations. 
New Zealand First believes that this bill will encourage more responsible activities and more accountability to public donors. It does not pose a threat to democratic process because it is only when laws are in place that democracy can function. The voluntary sector is much appreciated by New Zealand First for the service it renders to the general public. The sector’s independence is firmly in place without being jeopardised by the fly-by-nighters who as we are only too aware are getting a free ride under the guise of being charitable organisations. New Zealand First supports the bill because charitable organisations have been part of the landscape of New Zealand communities and are a reflection of a service-rendering society. 
During the hearing of submissions as the chairperson mentioned a list of eight points was agreed to by the select committee under the stewardship of the chairperson and with the supporting vote of the committee. The list reads: (1) general concern that compliance costs imposed by the bill will be onerous; (2) concern about the definition of “charitable purpose” that is used and the position of organisations that undertake advocacy; (3) the commission’s status as a Crown agent and its lack of independence from government; (4) the fact that registration numbers will need to be displayed on all correspondence and fundraising materials general concern about compliance costs of this; (5) disqualification of officers clause too onerous and may prevent people from volunteering to be officers; (6) inability to indemnify officers is too onerous and may also discourage people from becoming officers; (7) filing claims specified in the bill for providing information and annual returns to the commission are sufficient; (8) commission’s functions need to include a general education and support role and not be limited just to providing advice and support about regulatory duties and obligations. 
Listing those eight points assisted us to cut down the time spent listening to submissions. As submitters read those points they were able to get past them. I now realise that the bill covers those points to the advancement of charitable organisations in the country. I am sure that many submissions listed concerns outlined in the list I read out. Those submitters will now be happy with the result in the final bill. 
New Zealand First has concerns but we are looking at the overall picture of charitable organisations throughout the country. We support this bill to the House.