Oral Answers to Questions

Barry Sheerman Excerpts

Wednesday 27th January 2016 Commons Chamber

[Mr Wilson]

My hon. Friend is a strong advocate of NCS in Cornwall, where 580 young people have recently benefited from a life-changing experience on the programme. A one nation Government helps everyone to reach their full potential. That principle is at the heart of NCS. We support everyone who participates regardless of background, and provide bursaries to those who need financial support. NCS achieves a diverse mix of young people, working together to develop new skills and giving back to their community.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister will be aware that many Labour Members are great supporters of the programme, but can we be sure that the content has real, hard substance, such as democratic values and the equality of women in British life? Are those emphasised enough to young people on the programme?

[Mr Wilson]

Yes, the hon. Gentleman can be assured of that. According to the figures, 72% of participants felt more confident about getting a job after they had taken part in NCS. A year on, people are still benefiting from taking part in the NCS programme, according to the research.

Charities (Protection and Social Investment) Bill [Lords]

Barry Sheerman Excerpts

Tuesday 26th January 2016 Commons Chamber

[Anna Turley]

It is a pleasure to speak today on behalf of Her Majesty’s Opposition about this, my first Bill. The Committee process has been excellent, and I welcome this opportunity to revisit the Bill and talk again about some of the issues that were raised.

The main objective of the legislation is to provide a strong regulatory framework to support the charity sector and its trustees. In particular, it aims to strengthen the Charity Commission’s arm by giving it more powers to regulate charities. That is an important objective, which we support, but we are clear that the right safeguards must be in place. The Charity Commission is the guardian of public trust and confidence in charities. On the whole, it does an excellent job, particularly in the context of the assault on its budget over the past six years. It is important for the integrity of the charitable sector that the commission should have the tools to do its job properly, and for that reason we support many of the Bill’s provisions.

However, as with any regulator, it is vital to ensure that the commission’s powers are subject to appropriate safeguards. Unfortunately, some of new powers for the regulator introduced by the Bill lack such safeguards and therefore leave scope for the commission to overreach itself. That threatens the independence of charities and the integrity and reputation of the commission, and it could fundamentally change the relationship between the commission and the charity sector.

Our concerns are shared by the sector, its advisers and more widely—the Charity Law Association, for example, has said that the new powers in the Bill need to be balanced by appropriate and proportionate safeguards. It points out that the new powers will apply not only in rare cases of deliberate abuse but to all charities and their many hundreds of thousands of well-meaning volunteer trustees.

A group of sector umbrella bodies, including the Directory of Social Change, the Association of Chief Executives of Voluntary Organisations, the National Council for Voluntary Organisations and the Charity Finance Group, have all expressed serious concerns about the lack of safeguards. The Joint Committee of the House of Lords and House of Commons that scrutinised an early draft of the Bill called for necessary safeguards to be included, and, of course, we pushed for those in Committee.

The Minister may point out, as he did in Committee, that the Charity Commission has a statutory obligation to act proportionately. We acknowledge that, but experience has shown that, sadly, that is not enough. In a recent High Court case involving the commission and the Joseph Rowntree Charitable Trust, the Lord Chief Justice referred to “ludicrous time limits” imposed by the commission in a regulatory situation; he said he could understand why it was felt that the Charity Commission had behaved in an extremely high-handed manner in that case.

The commission should, of course, have the power to do its job, but sensible limits should be imposed on how it exercises its powers. Our amendment would redress the balance.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I congratulate my hon. Friend on her excellent speech. I am a trustee of many charities; one of the concerns that those of us who work in the charitable sector have had for a long time is the weakness of the Charity Commission. Usually, its legal department is terrified of a case ending up in the High Court. I support the Bill: we need a strong commission that can do its job as it has not been able to do it for many years.

[Anna Turley]

My hon. Friend is absolutely right; that is why we support the Bill and the powers it gives to the Charity Commission. My hon. Friend is also right in talking about what is sometimes a lack of clarity and a confusion, which can be costly. We are really keen to get clarity on the grey areas, boundaries and improper balances in the Bill. It is really important that we get those on the record while the Bill has yet to be enacted and before we end up with costly processes in the High Court.

I turn specifically to new clause 1 and amendments 9, 8, 10, 11 and 12, which apply to clause 1, which relates to the Charity Commission’s new power to give warnings.

The Bill introduces a new power for the Charity Commission to issue official warnings to a charity or a charity trustee. The explanatory notes say that the power is intended to be used when the risk of an impact on charitable assets and services is relatively low, but the new power could have a far-reaching impact on charities that receive a warning. The Bill gives the commission complete discretion about publicising a warning. That could have serious reputational implications for the charity involved: the public, the media and funders may well not distinguish between a low-level issue giving rise to a warning and something much more severe. It is important that we consider the issue in the context of the high profile media issues raised recently. After all, official warnings issued by other regulators indicate a serious and high level of concern; under the Bill, the commission can issue a warning on the strength of a low-level breach of trust or just a breach of duty by a charity trustee. Indeed, it is our understanding that it intends to use the warning power in low-level cases.

As all hon. Members know, reputation is paramount for charities and charity trustees. The adverse publicity resulting from a warning could lead to a choking off of donations, grant funding and corporate sponsorships, leading to a closure of services and, potentially, to redundancies. A warning can be used as a trigger for further regulatory action; clause 2 makes a change to the circumstances in which the commission can take significant protective measures in relation to charities so that the failure to remedy an alleged breach of trust or duty specified in a warning is automatically a trigger to more serious action. That seems a startling implication for a power intended to be used in low-level cases and makes it all the more important that there should be safeguards around the exercise of the power.

Our amendments address those concerns in four ways. First, through amendment 9 and 8, they would limit the commission’s scope to publish the warning to a wide audience. The charity and its trustees would receive the warning, but no wider publicity would be involved. The warning would ensure that the charity took the commission’s concerns seriously, but would have no adverse effect on its reputation. If the charity failed to comply with the warning, the commission could take more significant regulatory action at that stage, and that might attract publicity. Low-level concerns, however, would not be publicised, to ensure that the commission’s action was proportionate and did not seriously impact—potentially fatally—a charity for a relatively minor error.

European Council

Barry Sheerman Excerpts

Monday 19th October 2015 Commons Chamber

[The Prime Minister]

I will make my hon. Friend happy whatever I do. I often read the fairy story of Goldilocks and the three bears and, obviously, we want the porridge to be at just the right temperature.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Prime Minister share my view and that of my constituents that in this turbulent world, with the migration crisis, the threat from Russia, the threat to our great steel industry and so many other things, we need European leadership? We need it to confront Russia, the Chinese exports of cheap steel and so many other things. Does he understand that people like me who are cautiously positive about Europe and want reform and an early referendum are worried to hear him say today that he wants to reduce Europe to just a trade association?

[The Prime Minister]

I very much agree with the hon. Gentleman. Like the British people, I want to know that our membership is principally about that common market that we wanted to join. However, as I put it in my party conference speech—I am sure he has read it—we should not just think about the things that we have got out of, such as the single currency or the Schengen agreement, but talk about the things that we have got Europe into, such as putting sanctions on Iran to get it to the negotiating table. We are on the brink of signing with America the biggest trade deal in our history, and we should be proud of that. It is something that was started by the British at the G8 summit in Northern Ireland. Let us talk about the positive things that Europe can achieve and which enhance our national prosperity and our national security.

Syria: Refugees and Counter-terrorism

Barry Sheerman Excerpts

Monday 7th September 2015 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right. That is why we are working with the UNHCR on the categories of people we will be taking from the camps.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I remind the Prime Minister that many of us in the Chamber are quite closely linked through our ancestry to migrants and refugees? In my case, my Huguenot Protestant ancestors were hounded out of France by the Catholics. Most of us in the Chamber will come from that sort of background. Should we not build on the generosity of spirit that has been shown by the British people? I do not think that the Prime Minister has yet gone far enough. I hope that he will go further. All of us must realise that none of us has clean hands and many of us are so responsible for the instability in the middle east that caused this problem in the first place.

[The Prime Minister]

Where I agree with the hon. Gentleman is that the British public are very generous and want to see us resettle refugees. They do not see any conflict—neither do I—between resettling refugees and playing our humanitarian part while having a well- managed and well-controlled immigration system. They want both things and we must deliver both things.

G7

Barry Sheerman Excerpts

Wednesday 10th June 2015 Commons Chamber

[The Prime Minister]

My hon. Friend makes an important point. There has been a mixed picture since the Minsk agreements were signed. Overall, there has been some sign of lower levels of violence and aggression, so we should recognise that. I think the decision to roll over the sanctions automatically in June is right, with the very clear warning that if things were to get much worse—if there were to be, for instance, a Russian-backed push for more territory—that could lead to higher sanctions.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I point the Prime Minister to the part of his statement on economic security, which was quite short? What does he say to those who criticise the G7 and say that we have never learned the lessons of the world economic meltdown in 2008 by putting together a policy, a set of regulations and a set of organisations that could prevent it from happening again?

[The Prime Minister]

The G20 has in many ways been the key organising body for driving changes to rules on bank regulation and capital requirements, for instance, and reform of global institutions. I think that helps, because of course banking problems and meltdowns can happen in developing countries as well as advanced countries. The strength of the G7 is that yes, of course, we discuss economic and trade issues, but we have very like-minded conversations about the big security challenges such as ISIL and Russia. Frankly, it was helpful that the conversation was at the G7, because it was that much more candid and frank.