Brexit: Negotiations

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 24th April 2017 Lords Chamber

[Lord Bridges of Headley]

I can assure the noble Baroness and all noble Lords that there will be ample time for a debate about the matters before us, not just over the months to come after the general election but in the weeks before it—I am sure everyone is looking forward to it. As regards the time lost, I draw the noble Baroness’s attention to the fact that, as I understand it, the General Affairs Council will not adopt the Commission’s draft negotiating guidelines until 22 May at the earliest. Therefore, political negotiations will not begin before early June. As the Commission has said, those negotiations will begin after the general election on 8 June.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, on the election, as TV’s Mrs Merton famously asked Mrs Daniels, “So what first attracted you to the millionaire Paul Daniels?”, perhaps I could ask Mrs May, “So what first attracted you to an election when you were apparently 20 points ahead in the polls?”. However, the Question in front of us is about Europe. We need an exit that assures access to the single market, a continuing relationship with Euratom and the other agencies, and protection of the rights of EU nationals. Some of these might require some involvement with the ECJ. Does the Minister not think that this is something the Government might now look at, so that we can achieve those broader objectives?

[Lord Bridges of Headley]

I am delighted that the noble Baroness is looking forward to 8 June as much as a number of us are. I can absolutely assure the House that we are looking at options as set out in the Government’s White Paper. The Prime Minister, I and other ministerial colleagues have made it clear time and again that we wish to end the primacy of EU law once we have left the EU. As regards the specific issues, I have nothing further to add to what has already been set out in the White Paper.

Brexit: Negotiation Programme

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 20th March 2017 Lords Chamber

[Lord Bridges of Headley]

My Lords, I shall repeat what I have said before. It is a matter of firm policy that, once Article 50 is issued, it will not be revoked, and I can also assure all noble Lords that the Government are indeed intent on delivering the result of the referendum. The United Kingdom will leave the EU and, to quote from the first line of the White Paper:

“We do not approach these negotiations expecting failure, but anticipating success”.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I am sure that the Minister has read the report of the Constitution Committee. He may also have read the IFG report from this morning. In the light of those, could he tell the House something about how we will deal with the great repeal Bill? Will it have pre-legislative scrutiny? Will we need some mechanism for the extra 5,000 statutory instruments that we will be met with? Does he agree with the Institute for Government’s assessment that 10 to 15 other pieces of primary legislation could be brought before us?

[Lord Bridges of Headley]

I am sorry to disappoint the noble Baroness and your Lordships, but I am not going to go into that much detail now. Good things will come to those who wait. As noble Lords would expect, a lot of thought has gone into not just the amount of legislation that will be required, be it primary or secondary, but the need to make sure we get those statutes on to the statute book in time, while balancing the need for effective and proper scrutiny. I have been taking a close interest in this. We will publish a White Paper in due course. I am sure that there will be plenty of debate about that. As always, my door absolutely remains open to any one of your Lordships who may have views on that White Paper.

European Union (Notification of Withdrawal) Bill

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Ping Pong (Hansard): House of Lords
Monday 13th March 2017 Lords Chamber

[Baroness Hayter of Kentish Town]

I will take no lessons from the Liberal Democrats, who confessed to me outside the Chamber that this appeals to their core vote and they are piling on members because of it. So we are here to move a Motion to help them gain members. That may be suitable for them but it is not taking this House as a legislative body seriously. More than that, they are falsely raising people’s hopes, when they know that this Government in the Commons, despite my best endeavours and wants, will not change their mind. They should think hard about what they are doing to those people whose expectations they are raising, which will not be fulfilled.

I worry that they are also making a bit of a mockery of the House if they think that we will vote on this, as we did last week, in the safe knowledge that others will vote the other way and it will not be carried. I also wonder what it does to the decision that we took. The Lords majority of 102 is bound to shrink. As we have heard already, we know that the House does not have the appetite to send this matter back given the majority in the Commons, which was higher than before. Instead of our being able to go out from this on the high level of saying, “By 102, we think that the Government are wrong”, we would have either a lower vote or a lower vote an hour later if it ping-ponged. By the way, I say to the noble and learned Lord, Lord Brown, that the way I play ping-pong I never get it back even once. Instead of saying that we ended up with a majority of 102 on the side of those EU nationals here, we will have a lower vote either now or later on.

On behalf not so much of this side of the Chamber as of the 3 million people who are looking to us for some help, the Government’s position is a matter or enormous regret to me. I do not think that it is correct; I do not think that it is moral or ethical; I do not even think that it is clever negotiations. However, we accept the view of the elected House. We will not rest after tonight. We will be back, urging the Government to allay the fears of people caught in this limbo.

[Lord Bridges of Headley]

My Lords, I thank those who have contributed to this short debate. Once again, many of your Lordships have spoken with great passion. After so many hours of debate, I fear that there is very little that I can say without repeating myself and travelling over well-worn ground, so I will be quick and brief.

I reiterate the point that the Government’s position on this issue is very clear: we want to secure the status of EU citizens in the UK, just so long as we can do so while guaranteeing the position of UK citizens to whom we have a responsibility across the European Union. We cannot and should not seek to do one without the other. All 4 million people matter.

As to assurances given to EU nationals here today, let me repeat what I said previously: nothing changes in their status until we have left the EU. Nothing can change without the approval of Parliament, and the Government will continue to respect their obligations under the ECHR. This position is held by the Government and now by the other place. I remind your Lordships of what our European partners are saying. Many of them have made it clear that they, too, want a speedy agreement, but once we have started the negotiations. Indeed, the Polish Prime Minister has said:

“Of course, these guarantees would need to be reciprocal. It is also important what guarantees the British citizens living and working in other member states of the European Union will have”.


We need an agreement on this issue as soon as possible and I believe that we are in a good position to do just that. Just last Friday, Guy Verhofstadt, the lead negotiator for the European Parliament, told the BBC that the issue of EU citizens’ rights post exit should be addressed,

“before we talk about anything else”.

On the matters raised by the noble Lords, Lord Davies and Lord Campbell-Savours, I want to highlight the words of my right honourable friend the Secretary of State, who said on this subject earlier today in the other place that the Government would aim to get all member states, the Commission and the Council in an exchange of letters to explain what the rights of EU citizens are and will be once the UK has left the EU and once an agreement has been reached in negotiations. As regards the process of ratification of such an agreement, this is a matter for negotiation, but it is the Government’s intention to have this agreement concluded by the end of the two years.

Our commitment to seeking an agreement is clear, but the Government will not be able to set about securing this reciprocal guarantee until we have passed this Bill and triggered Article 50. I urge your Lordships to let this Bill go through unamended and not to prolong its passing, so that the Prime Minister can trigger Article 50 and seek the certainty that we all want to offer both European and UK citizens.

--- Later in debate ---

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I was never someone who enjoyed saying, “I told you so”, because I rather expect my advice to be heeded. Never was this more the case than last week, with the highest ever vote in the House of Lords. Of the 634 Peers who voted, 366 advised that the promised vote on the outcome of the negotiations should be inscribed in law. That would make it very clear to the Government—but also to the EU Commission and Council as well as to the European Parliament—that this Parliament is a player in the process of how we extract ourselves from the EU. As my noble friend Lady Symons has said, without our change, the European Parliament, which has UK Members in it, has the right in law to consent to the deal but this Parliament has no such guaranteed right. Our amendment last week gave legal certainty to the promised vote and the legislative authority for the withdrawal agreement, something which the Government may well have to do another way if not in this Bill. There is currently no legislative way of authorising the withdrawal deal ahead of a treaty.

There are challenges ahead. Withdrawal is not simply about the divorce or even just about the potential shape of new trade deals with the EU 27. It will be about forging a new partnership, or concordat, which will cover so much more than trade, vital though that is. We will need a vision of how we should work together after exit, not just on the hard subjects such as security, terrorism and that, but on the whole swathe of our approach to the economy. We will need to negotiate with the EU in a way that shows our openness and willingness to retain our strong bonds, because that will influence our future relationship with the EU as a bloc and with the 27 members individually. It is for this reason that it is important to recognise Parliament’s role in the process, because we will be part of those negotiations with the EU and the 27 countries. We will be working across Europe with all our contacts—in business, trade unions and consumer groups—to help get the best deal for this country. Parliament should be a part of that.

In so far as we heed the polls, they indicate that by 2:1 people are in favour of Parliament having a meaningful vote at the end of the negotiations. This House spoke very clearly last week. Therefore, I deeply regret that the Government and the Commons did not hear our plea. However, as the noble Lord, Lord Pannick, said, their view will not change. We will not make a pointless gesture. I believe that the noble Baroness, Lady Ludford, is now tweeting that that is shabby of us. However, that is our view. We have heard, regrettably, that the Commons did not heed the overwhelming vote in this House. However, we will hold the Government to their promise of a vote before that in the European Parliament and will work to devise a parliamentary route to establish that more firmly, not least because having the support of Parliament during the negotiations would be a source of strength rather than a weakness. The Government have made the wrong call on this amendment, but we will seek to rectify that another way.

[Lord Bridges of Headley]

My Lords, we spent considerable time debating this issue in Committee, on Report and again today. I fear that once again there is little I can add to this fulsome debate, especially as I am very much aware that my last attempt to convince the House of the merits of my case did not result in an unalloyed success.

As the noble Lord, Lord Pannick, said, we had the largest vote on record in this House, with a turnout of 634 Members. The fact that 366 of your Lordships did not accept my arguments was, I hope, as they say in Sicily, “Nothing personal, just business”. However, my right honourable friend the Secretary of State did a bit better this afternoon. As has been remarked, the other place rejected this amendment by a majority of 45.

I will briefly remind your Lordships of the Government’s case. First, as I have said, this is a simple and straightforward Bill designed to implement the referendum result and respect the Supreme Court’s judgment. It is the culmination of a long, democratic process started by the people at the last election, endorsed by this House in an Act of Parliament and then voted for by the people at the referendum itself. Parliament will continue to play its part through the scrutiny and passing of future legislation, through questions and debates and, most important of all, through a vote on the final agreement. Therefore, despite what the noble Lord, Lord Taverne, said, we are not abandoning parliamentary sovereignty. Our commitment to a vote in both Houses, which we fully expect and intend will take place before the European Parliament votes on any deal, is an absolute commitment and will be honoured.

Furthermore, as my right honourable friend the Secretary of State for Exiting the European Union said this afternoon in the other place,

“of course, Parliament can, if it wishes, have a vote and debate on any issue. That is a matter for Parliament. It is not for a Minister to try to constrain that”.—[Official Report, Commons, 13/3/17; col. 42]

Therefore, as I have said on a number of occasions, proposed new subsections (1) to (3) are unnecessary. However, as I said before, this amendment goes further. It seeks to make it impossible for the Prime Minister to walk away without a vote in Parliament. Article 50 does not give the European Parliament that power. The European Commission would not have to go to the European Parliament if it wanted to walk away from the negotiations. So it is incorrect to say that the amendment would simply put on the face of the Bill the same power as that given to the European Parliament.

Also, as I argued before, it is unclear what the effects of this would be in any case. If Parliament votes against the Prime Minister walking away, is she to accept the deal on offer? Is she meant to try to negotiate a better one? Or is she to try to revoke the UK’s notice to withdraw? We do not know and, as I have said, such vagueness on something so critical is unacceptable.

The people voted to leave the EU in a referendum granted to them by this Parliament. We will respect that result. We are confident that the UK and the EU can indeed reach a positive deal on our future partnership, as this would be to the mutual benefit of both this country and the European Union. We will approach the negotiations in that spirit.

As to the point made by the noble Lord, Lord Hannay, it is very hard to see what meaningful vote there could be if there had been no deal at all. In the absence of an agreement, I have no doubt that there would be further statements to this House. However, we are leaving the European Union, either through the deal we have agreed or without a deal. So we now need to consider whether the other place should be asked to consider this issue yet again, given that it has considered and decided, twice, against amendments that seek to put on the face of the Bill a vote on the final agreement.

I end by saying that this Bill is to trigger the process of our leaving and to fulfil the Supreme Court’s requirements. As I have said many times before, tonight we might just make it to the legislative base camp in terms of parliamentary scrutiny and debate. There is a lot more to come. The other place is clearly satisfied with this approach and satisfied that the Bill does not merit amendment. I therefore ask noble Lords to be mindful of that and to pass the Bill unamended.

European Union (Notification of Withdrawal) Bill

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Report stage (Hansard - continued): House of Lords
Tuesday 7th March 2017 Lords Chamber

[Baroness Hayter of Kentish Town]

The Commons should certainly accept this amendment, albeit I am happy with the tweak to make certain the supremacy of the Commons. The most important thing is to get this amendment in the Bill so that we are absolutely clear about that.

It is so simple. Whatever the outcome of the negotiations with the EU 27, it is with Parliament, not simply with the Government, that authority lies, deal or no deal. I am afraid I did not follow the Minister’s response on this last week in Committee, questioning what would happen if the EU terminates the talks and refuses to extend the negotiations. He asked: what then? It is pretty simple: the Government come back to Parliament.

Stranger still than that is the briefing coming out of No. 10, with advisers arguing that giving legislators the power to veto the final Brexit deal and send the Premier back to the negotiating table would undermine her and limit the possibility of a good deal and, indeed, might even push the EU into giving a bad Brexit deal, incentivising it, it seems,

“in the hope it stops us leaving”.

That was what Downing Street apparently told the Financial Times, and I always believe the Financial Times.

I again remind the House that it was Mrs May who said that the deal would be put to a vote in both Houses, so all this is real nonsense. The only issue is whether it is an undertaking or in the Bill. All we are doing in this amendment is putting her pledge, which I am sure was absolutely sincerely given—I do not question that—in the Bill. It is hardly starting a revolution. It is certainly not upending the referendum, and any such arguments are in bad faith because we are trying to put the Prime Minister’s undertaking in the Bill. We do not want the Government’s hand to be forced by the courts. We want the vote to be clearly in the Bill, ideally with the Government’s blessing, without even the need for us to divide. They need to provide certainty at this stage so that we are not back having this debate in 18 months’ time. The amendment is about authorising Parliament. It is to put wheels on the outcome of the referendum.

[The Parliamentary Under-Secretary of State, Department for Exiting the European Union (Lord Bridges of Headley) (Con)]

My Lords, this debate has shown this House at its very best, and I thank all noble Lords who have spoken. Forty-four, I think, hours of debate on these 137 words show how sprightly your Lordships are.

Before I discuss the amendments, I shall briefly set out three core principles governing our approach to this country’s withdrawal from the European Union. First, the Government are determined to honour and deliver on the result of the referendum: the United Kingdom is going to leave the European Union. Secondly, everything we do will be determined by our national interest, and we shall do nothing to undermine it. Thirdly, parliamentary sovereignty is key. Parliament will have a role in scrutinising the Government throughout the negotiations and in making decisions, a point to which I will return.

Given this, I turn now to the rationale and motives behind the amendments tabled by my noble friend Lord Cormack, the noble Baroness, Lady Hayter, and the noble Lord, Lord Pannick. One basic intent is that the Government should be legally bound to deliver on their commitment to give Parliament a vote on the agreement. That government commitment is crystal clear, and I shall repeat it: the commitment is to bring forward a Motion on the final agreement to be approved by both Houses of Parliament before it is concluded. We expect and intend that this will happen before the European Parliament debates and votes on the final agreement.

The need for my noble friend Lord Cormack’s amendment, and the first three proposed new subsections of the amendment tabled by the noble Baroness, Lady Hayter, and the noble Lord, Lord Pannick, really comes down to a judgment about whether Ministers and the Government can be trusted and to considering the consequences if the Government were not to deliver on this commitment. All I can say is that of course we will honour our promise and Parliament will hold the Government to account for doing so. Let me go further and echo a point very well made by my noble friend Lord Howard: at any point throughout this process, Parliament will be able to express its view. Given this, the other place was happy with this state of affairs. It considered and rejected similar amendments.

Furthermore, Parliament will not be providing scrutiny in the dark. After all, this Government have committed to keeping the UK Parliament at least as well informed as the European Parliament as negotiations progress. The Government will continue to be accountable to Parliament via regular Statements—which I so enjoy—debates and Select Committee appearances. Crucially, Parliament’s role will not just be one of scrutiny. It will make decisions and shape the legislation required to give effect to our withdrawal from the European Union: the great repeal Bill to repeal the ECA and the legislation that will be required for significant policy changes, such as on immigration and customs. With the greatest of respect to my noble friend Lord Cormack and the noble Baroness, Lady Hayter, any amendment that attempts to transcribe the Government’s commitment into legislation is unnecessary. More than being unnecessary, an amendment that sought to put this commitment in the Bill could have unintended consequences and create, as has been said, a lucrative field day for lawyers. I do not want to single out any particular lawyer, but I have one in mind. As the noble Lord, Lord Lisvane, put it so well in Committee,

“regulating parliamentary proceedings by statute ... generally ends in some sort of tears”.—[Official Report, 1/3/17; col. 920.]

Other noble Lords have asked whether someone might argue that we need an Act of Parliament to authorise our exit from the European Union and whether the Bill is sufficient for our withdrawal. The requirements of the Miller judgment are entirely fulfilled by the Bill. The Supreme Court ruled that because withdrawal from the EU involves removing a source of domestic law in the UK, and because of the far-reaching effects of the European Communities Act, the authority of primary legislation is needed before the Government can decide to give notice under Article 50. The Supreme Court did not rule that anything further is required to satisfy our constitutional requirements.

Let me now turn to subsection (4) of the new clause proposed by Amendment 3, which was tabled by the noble Baroness, Lady Hayter. I have to say there is something about Labour and Clause 4, but we will put that to one side. The motive behind this subsection was summarised by the noble Lord, Lord Pannick, in Committee and he repeated it today. He said:

“Parliament should decide whether we leave the EU with no agreement or whether we leave the EU with whatever agreement is being offered to us by the EU that the Government think is unacceptable”.—[Official Report, 1/3/17; col. 907-8.]


As he said, proposed new subsection (4) goes beyond what the Government have committed to in the other place and there are several problems with it. The first concerns the Government’s role as negotiator and one of my first principles, which is protecting our national interest. When considering this amendment, we must ask ourselves whether it will strengthen or weaken the Government’s hand at the negotiating table. Remember the wise words of this House’s Select Committee:

“The Government will conduct the negotiations on behalf of the United Kingdom, and, like any negotiator, it will need room to manoeuvre if it is to secure a good outcome”.


Let us not forget the Motion passed by the other place that nothing should be done to undermine the negotiating position of the Government. This proposed new subsection in this amendment would do just that—

European Union (Notification of Withdrawal) Bill

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Committee: 2nd sitting (Hansard): House of Lords
Wednesday 1st March 2017 Lords Chamber

[Baroness Hayter of Kentish Town]

Noble Lords will be pleased to know that I, too, am not going to repeat the arguments put so succinctly by the noble Lord, Lord Pannick, nor the wise words of the noble and learned Lord, Lord Hope—although my noble friend Lord Lennie said at one point, “Oh dear, it sounds like a redrafting of Clause 4”. A certain group would understand that.

The agreement that the Government negotiate, or fail to negotiate, has enormous implications for this country. As has been said from the Dispatch Box many times, the referendum gave the UK a final say: that we should leave the European Union. That is the destination. However, it said nothing about the route or the pace of that change. As someone said to me, it is a bit like deciding to jump out of an aeroplane. You know exactly where you are going, but doing it before you have learned how to use the parachute could be troublesome. You could have a hard landing—that was the wrong phrase—if you do not know about the wind, the altitude and particularly the position of the ripcord.

The referendum gave no hints about any of the trade-offs that will come in what I hope will be a harmonious partnership that we will be able to negotiate with the EU 27. The Government will negotiate that, but Parliament must agree it. The agreement will have to go to the Council and the European Parliament; that is written in law in Article 50. It is therefore mandatory in law that the European Parliament will have to give its consent. But there is nothing in law that states that this Parliament must give its consent.

Although assurances have been given and the Prime Minister has said that there will be a vote in both Houses, it is not good enough. That is partly because it is a vote rather than legislation and partly because the same protection that the European Parliament has is not written in statute. That is all we are asking for. There must be equal legislative requirement on the exit deal for this Parliament to cover all eventualities. The debate has been on whether we have just the divorce, the withdrawal, or we have the withdrawal plus the framework, or the withdrawal and even a treaty—I doubt it will be within two years—or whether we get nowhere. Surely, as has been said by my noble friend Lady Kennedy, only this Parliament can decide on that. That is all that we are asking. The drafting can improve.

The most interesting questions were asked by the noble Lords, Lord Deben and Lord Higgins: why do the Government not want to do this? What is troubling them? They are going to have to do it at some time. They can either bring forward another piece of legislation later, which I think was the advice of the noble and learned Lord, Lord Hope, or they will be taken there by a court—but get there we will. That is another part of the destination; there will have to be legislation and this sort of amendment, tweaked if necessary, is one that this House will want to support.

[Lord Bridges of Headley]

My Lords, this has been an excellent and interesting debate, and I am slightly wary at this late hour to be inserting myself between the noble and learned Lord, Lord Hope, and the noble Lord, Lord Pannick, who, as I said at Second Reading, is such a worthy adversary.

What everyone, myself included, clearly shares is the sentiment and perfectly legitimate intention to ensure that Parliament is able to hold the Government to account as we leave the European Union. But there is one fact of brutal simplicity that towers above this whole debate. Much though it may bore or irritate some noble Lords, I fear that it is one we cannot and must not ignore. It is simply this: the majority of people voted to leave the EU. I know that a number of your Lordships have argued with great passion that this was the wrong decision, but the decision has been made and we are going to withdraw from the EU.

Brexit: Green Paper

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 9th January 2017 Lords Chamber

[Baroness Hayter of Kentish Town]

My Lords, the Minister needs to offer two things to the House. The first is perhaps that he will no longer do what some of his colleagues do. The Secretary of State, Liz Truss, refused to appear before the Joint Committee on Human Rights looking at Brexit, a refusal that the committee described as unacceptable. I hope that the Minister will come to the House with not just the final vote that will happen when Article 50 is triggered, but the detail of what the Government are seeking to achieve out of negotiations when we leave the European Union.

[Lord Bridges of Headley]

I can certainly assure the noble Baroness that it remains the Government’s intention to build as strong a national consensus as possible around our negotiation position, to treat this House and the other place with the respect they deserve as the negotiations continue, and to give the information required for scrutiny to be meaningful and worth while.

Brexit: Constitutional Reform and Governance Act 2010

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Tuesday 13th December 2016 Lords Chamber

[Lord Bridges of Headley]

My Lords, the Government have set out very clearly what they intend to do in terms of the principles as regards leaving the EU, and we have made it clear that we will publish, as we intended, a plan in due course.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, the report that has come out today from one of our committees, Brexit: The Options for Trade, says that a clear game plan is needed on trade and that it is unlikely that a bespoke EU trade agreement can be agreed within the two-year period, so a transitional deal will be vital. Could the Minister confirm that the transitional deal, as well as the final one, will be put before both Houses?

[Lord Bridges of Headley]

My Lords, I am sorry to say that it is slightly premature for me to start commenting on all these points as regards the negotiations, which have yet to begin. As for transition, I have said at this Dispatch Box, my right honourable friend the Secretary of State has said, the Prime Minister has said and the Chancellor of the Exchequer said yesterday that we wish to have a smooth and orderly exit from the EU. That is in this country’s interests and in the interests of many right across Europe—and, indeed, that is what I have been hearing up and down the length and breadth of the country. As for our plan, it will be revealed in due course.

United Kingdom: Single Market

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Tuesday 15th November 2016 Lords Chamber

[Lord Bridges of Headley]

The noble Lord makes a very good point. As he and the whole House will know, the Prime Minister has made it clear that we wish to take control of our laws, borders and money, while achieving the best possible access to the single market, and ensuring that we have the means to continue to co-operate and collaborate with our European partners on issues where it remains in our national interest to do so.

[Baroness Hayter of Kentish Town (Lab)]

Is it not the truth that the Government were so ill prepared for Brexit that the reason they are not revealing their hand is that they do not know what their hand is? They seem to have three hands, with three different Ministers not in agreement and one of them even failing to meet the 27 fellow members of the European Union, whose support we will need in our negotiations. Therefore my question to the Minister is: rather than playing politics, could he—

--- Later in debate ---

[Baroness Hayter of Kentish Town]

Listen to the punchline. Could he not treat us all as adults and say that this House and all parties should be involved in this for the sake of the national interest, and that we should have a discussion which incorporates what we want to say rather than saying, “It is all secret and we cannot tell you”? Will the Minister take that approach in the discussions?

[Lord Bridges of Headley]

My Lords, I certainly treat everyone in your Lordships’ House as adults and listen to, and respect, the views of those on all sides of the House, whatever their views might be. As I have said all along, the Government’s view on this is to continue to engage as far as possible with this House, the other place and, indeed, groups right across society, including businesses and NGOs, and listen to their views. We are doing so in a measured, calm and reasoned way. We will continue to do so and assess the options open to us.

Brexit

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Thursday 3rd November 2016 Lords Chamber

[Lord Bridges of Headley]

I had expected that question. The Government are clearly disappointed by the court’s judgment. The country voted to leave the European Union in a referendum approved by an Act of Parliament, and the Government remain determined to respect the vote of the referendum. We will appeal this judgment. I have nothing further to say at this precise juncture. I am sure that more will be said in due course.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, it is interesting that Brexit was all about parliamentary sovereignty. We regret that the Government will now appeal against the judgment to give this decision back to Parliament. In fact, if the Government do not like the Supreme Court’s decision, perhaps they will try the European Court of Justice. We accept that we will trigger Article 50, but what is important now are the terms of that. Parliament can help to shape the basis on which we leave. It would be better to welcome this decision—and I ask the Minister to do that—to work with the judgment of the court and to take this important decision to Parliament.

[Lord Bridges of Headley]

I have nothing further to add to what I said a moment ago. The Government’s decision is to appeal this judgment. The referendum result was clear. Some 17.4 million people voted to leave, and the Government have made it clear that they wish to deliver on that.

Brexit: Single Market

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Wednesday 14th September 2016 Lords Chamber

[Lord Bridges of Headley]

My noble friend makes a number of very good points. He is right to draw a distinction between access and membership. I would add that we are—and we must never forget this—negotiating from a position of considerable economic strength in this country, endorsed once again by the employment statistics that came out today. Therefore, as we enter these negotiations, that should buoy us.

[Baroness Hayter of Kentish Town (Lab)]

At 10 am yesterday, our Constitution Committee introduced its report stating that a parliamentary vote was needed before Article 50 could be triggered. It took David Davis just five hours to reject it. Does the Minister think that that bodes well for the advice he will take from your Lordships’ House? Would it not be a good idea if some of the advice was read before it was rejected?

[Lord Bridges of Headley]

I am sorry that the noble Baroness feels that way. I have read the report with regard to Article 50, but the Government’s position on Article 50 has been clear for some time. I have nothing further to add other than that we are intent on delivering the verdict of the British people.

Brexit: Constitutional Reform and Governance Act 2010

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Thursday 8th September 2016 Lords Chamber

[Lord Bridges of Headley]

I think I got that question, and I thank the noble Lord for it. The Government are very clear about the obligations of the Constitutional Reform and Governance Act 2010, which states clearly that both Houses of Parliament have a role in approving treaties as set out in the Act. As I said in my first statement, we will observe in full all relevant legal and constitutional obligations that apply.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, leaving the EU is not a simple step outside but a journey. The Government need to set objectives for their negotiations to get the best deal for what comes after we leave. They need a clear map of the hurdles, the challenges and indeed the opportunities, as well as the ways of handling emerging issues. It is vital that Parliament and, through us, the public are engaged with this every step of the way as to how we leave the EU and our relationships afterwards. Will the Government commit to ensuring that level of engagement throughout the process, so that any final vote that may happen would be on the basis of a developing consensus?

Civil Service Fast Stream

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 11th July 2016 Lords Chamber

[Lord Bridges of Headley]

My noble friend makes an extremely good point. Apprenticeships will be key. The high-level apprenticeship talent programme aims to bring in 750 people this year, and around 18% of highers come from lower socioeconomic backgrounds. I will write to her specifically on the point about the fast stream.

[Baroness Hayter of Kentish Town (Lab)]

Will the Minister ensure that the Cabinet Office team being put together under Oliver Robbins in the new European Union unit will be gender-balanced and representative of all our nations and regions, as well as of the population, to ensure that the interests of the whole country are central to the preparation for the Brexit negotiations?

[Lord Bridges of Headley]

The noble Baroness makes a good point. As the head of the Civil Service has pointed out, we are determined to make sure that we get the brightest and best to negotiate and advise on an outcome that represents the views of our entire society. I am unable to go beyond that at this precise juncture.

Elections: Campaigning

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Thursday 5th May 2016 Lords Chamber

[Lord Bridges of Headley]

As I say, we are carefully looking at all these recommendations and how they might be applied. Paragraph 6.14, on spending limits, states that:

“The Review found no evidence that the spending of third parties at the 2015 General Election was inhibited by”,

those spending limits. The paragraph continues:

“No third party spent up to the new limit”.

However, there are clearly concerns about this and the Government are considering their position.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, the effect was chilling. We also have the chilling effect of the proposed gag—now paused—on the expenditure of grants by charities. However, the one bit that has not been chilled or stopped at all is lobbying by business, the vast majority of which is not covered by the statutory register of lobbyists. When will the Government bring forward legislation to tackle that much bigger form of lobbying?

[Lord Bridges of Headley]

The Government are always looking at these issues and their implementation. I again thank my noble friend Lord Hodgson for looking into the subject matter of this Question. He has produced a very balanced set of recommendations. As regards the perceived chilling effect, he said:

“It was … far from clear the extent to which it was the reality of the legislation’s provisions rather than the perception of what restrictions they imposed, which affected organisations’ behaviour … nevertheless … there was an atmosphere of increased nervousness and caution”.

I repeat that the Government are looking at these points and considering their position.

Trade Union Bill

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Tuesday 3rd May 2016 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I thank the Minister for his clarity and brevity—after the previous debate—in introducing the amendment. I also thank him for taking the time to meet me and colleagues to discuss the possible introduction of a cap on facility time. He knows that we have serious concerns, which we retain, about the principle, and that we have even greater concerns about how it might work. How and when would a Minister decide that the amount of time taken needed to be restricted, and on what grounds? Would it be contrary to the desire of the relevant employer?

We raised the example of organisations going through contraction, restructuring, relocation or even growth, where more negotiating time with union reps is always needed. There is also the example of industries with particular safety issues or health issues—we discussed the health service—where safety reps might be needed more than average, thereby pushing up the overall amount of facility time recorded.

On the phrase,

“any other matters that the Minister thinks relevant”,

it would be helpful to hear from the Minister what sort of things he deems might be relevant. However, that is the only remaining issue, because the others we raised have been met by the safeguards he has just listed. They will spell out that particular instances can be given and that the employer will have time to give reasons.

The remaining issue is therefore one we discussed under the previous clause: whether charities might be caught by this provision. I acknowledge the discussions we have had and those that will now take place with the organisations likely to be affected, including with representatives of charities. We also recognise that we will be able to debate this further when the relevant regulations are brought forward.

These amendments show that the Government have clearly heard our original concerns. They have produced a schema which allows the relevant comparative data to be used and judged alongside similar industries and organisations, and which allows time for consultation with the employer, giving them the opportunity to explain the management practice that requires so much union reps’ time to do their work. We still concur with the view of the noble Lord, Lord Kerslake, that this is an unnecessary measure and would prefer the cap to be dead and buried. However, having recognised that we were not going to win that one, we acknowledge the change that the amendments have made and are happy to support them.

[Lord Bridges of Headley]

I thank the noble Baroness, the noble Lord, Lord Kerslake, and the noble Lord, Lord Stoneham, for their comments. Where there was discord, we have brought a bit more harmony, at least, on this point. There is clearly disagreement on the need for such a measure, but I would argue that that is precisely why we need the data. What the data will show will determine whether the reserve power needs to be exercised in exceptional circumstances. I very much hope that the assurances I have given today address a number of the concerns expressed by the noble Lord, Lord Kerslake, and others.

On the point made by the noble Lord, Lord Stoneham, about bureaucracy, I simply repeat that a considerable section of the public sector already considers publishing information on facility time to be best practice. I highlighted what is published in the local government transparency code and what the Department for Education recommends that all schools publish. His point about bureaucracy—ensuring that it is kept to a minimum—is of course one that every Government wish to heed.

The noble Baroness, Lady Hayter, raised the question of other issues that are deemed to be relevant. In essence, they must be relevant without being capable of being specified now, because that will be set out in the evidence given when the Government bring in regulations—which, as I said, would be debated by both Houses of Parliament.

With that, I am once again grateful to the noble Baroness, Lady Hayter, and the noble Lord, Lord Mendelsohn, for their constructive comments and the conversations we have had. I beg to move.

Trade Union Bill

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 25th April 2016 Lords Chamber

[The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)]

My Lords, I start by thanking those who have helped us reach a modicum of consensus—I should probably stress the word modicum, as I do not want to tempt fate—in particular the noble Baroness, Lady Hayter, with whom I have had several conversations, along with her colleagues on the Front Bench and the noble Lord, Lord Stoneham.

A number of legitimate concerns have been expressed about how far reaching these provisions relating to this clause will be and how they might be implemented. The Government have listened to these concerns and, to address them, have acted in a variety of ways.

First, we produced a clear list of bodies that will be in scope. We used the Freedom of Information Act as a starting point for this and, as I committed to do on Report, we have now shared this list with the House as part of the draft regulations. However, I clarify again that the scope of facility time transparency will mean that it applies only to organisations with 50 or more employees and at least one trade union official. Those bodies that do not meet these criteria may exclude themselves from the facility time transparency measures.

Secondly, there was equally legitimate concern about the need to ensure that we are clear which organisations may be in scope. In particular, several noble Lords were concerned about the provisions applying to organisations only partly funded by public funds. The Government agree that that is a legitimate concern and, with that in mind, I now put forward an amendment that would ensure that only those public sector bodies mainly funded by public funds could come within the scope of regulations made under Clause 13(9). I know that that change was important to a number of your Lordships.

Thirdly, we have also brought forward Amendments 5 and 7, which will ensure that any exercise of the power in Clause 13(9) will be by way of the affirmative resolution procedure. This should provide the assurance that a number of your Lordships sought—namely, that inclusion in regulations of bodies that are not public authorities but are performing functions of a public nature will come about only once both Houses of Parliament have expressly so agreed by affirmative resolution.

Let me now address a specific concern raised by the noble Baroness, Lady Hayter, regarding the scope of this clause and Clause 14, and the possible impact on charities. As I have said before, none of us wishes those clauses to apply to what I would call a typical charity—for example, Oxfam and charities of the type that fall outside what I would loosely refer to as the core public sector—or a relatively small charity performing laudable work in the community, such as tackling homelessness or addiction. As the noble Baroness, Lady Hayter, highlighted, some of those charities might—might—receive most of their revenue in one year from the public purse. The Government agree that we need to give them the comfort that, were that ever to be the case, they would not and could not come within the scope of these provisions. I therefore committed on Report to continuing to work with officials and the noble Baroness to devise an approach to alleviate and address those concerns.

I now confirm that the Government are committed to ensuring that regulations made under the extension powers in Clauses 13 and 14 capture only those charities that could be captured by the Freedom of Information Act and its Scottish equivalent and are also mainly funded by public funds. In future, if a charity met both of those criteria, Parliament would properly scrutinise whether the scope of the regulations should be extended to them, and this would be done via affirmative resolution. Therefore, because I know just how important this issue is to noble Lords, I will ensure that we will not use the powers to capture a charity that the Freedom of Information Act and Scottish equivalent could not also capture.

I believe that we have given due consideration to your Lordships’ concerns regarding the scope of the clause. We have reflected on many of these matters, the Government have made amendments to discharge noble Lords’ misgivings, and we hope that your Lordships will support the amendments.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I thank the Minister for introducing the amendments, each of which we are pleased to support. In doing so, I recognise the movement that the Government have made—particularly from “partly” to “mainly”.

We should, however—the Minister is right to smile—read the amendments on the scope of facility time and check-off restrictions in the Bill in the context of the helpful, albeit slightly belated, letter that I received from him late on Friday, which I imagine is also in the Library, and which outlines which organisations will be caught by the provisions. In the light of that 15-page draft, a skeleton regulation which would give effect to the mandatory reporting on facility time and the restriction of an employer’s freedom to operate check-off, I fear that I have seven questions for the Minister.

First, have the 255 bodies listed in the draft regulations, which are about to find themselves caught by them, been consulted? Secondly, why is the Legal Services Board on the list? It does not get government money, being funded by a levy on lawyers, and should therefore be excluded, alongside the Gambling Commission, by virtue of the third of the Government’s exclusions, as set out at the top of the second page of the Minister’s letter of Friday 22 April. When this House accepted the Legal Services Act 2007, it felt it important that the Legal Services Board should be independent of government for international as well as domestic reasons. Its inclusion in a list of bodies, restricting its managerial freedom, could be of concern.

Thirdly, the list refers to the proprietor of an academy under the 2010 Act. Given that the Government are now threatening that all schools should become academies, despite the resistance of many Conservative MPs, to say nothing of that of head teachers, governors and parents, particularly of primary schools, will the Minister clarify whether, should that White Paper find its way into the Queen’s Speech, any forced new academies would be covered by this provision?

Fourthly, with regard to charities—and I thank the Minister for our discussions on this and for what he said today—would housing associations be covered under his definition? The Minister made what appears to be a useful statement today and in his letter: it is not the Government’s intention to include organisations which the general public would consider to be charities—such as Oxfam or others doing valuable charitable work funded by the public purse—within the scope of the Bill. However, the letter also states that the “starting point for scope on public bodies captured remains those public authorities in the Freedom of Information Act”.

Given the reports last year that Matt Hancock, the Cabinet Officer Minister, was considering extending freedom of information into the charitable sector, will the Minister confirm that the Government have dropped that idea or at the least confirm that even if it were to be resurrected, the Government would still exclude charities of the sort he described from these facility time and check-off provisions? The Minister has kindly had discussions with us about charities, but there remain problems within the sector and concern about the definition. Will he therefore look again, as we asked before, and give some comfort by using words to define the exclusion, such as: “charities, regardless of their funding arrangements, which are independent organisations that have satisfied the public benefit test and are regulated by the Charity Commission.”? This would not cover the exempt charities, such as universities, which are regulated by another body. That would give comfort, should freedom of information be extended in a way that has not been covered by what the Minister said today.

Fifthly the breadth of the scope on facility time, in particular the inclusion of public broadcasters, including the BBC, and arts bodies, such as the British Museum and the Tate, continues to concern us. What is the justification for intervening in such beacons of independent and artistic freedom? The Minister no doubt saw the amazing tribute to Shakespeare from Stratford on Saturday night. It must have involved lots of discussions of safety, overtime, copyright and performance rights. Is he content these would all need documenting before the show could go on?

Sixthly, with regard to the detail that employers will have to document on facility time, we remain concerned about both the onerous—indeed, “burdensome” is the word—amount of red tape and the bureaucracy involved, as well as about how much information employers will have to demand of union reps about how they spend their time, often encroaching on to confidential or contentious matters. For example, the draft skeleton regulations require employers to provide a breakdown of the proportion of facility time spent on different union duties. They list them: health and safety, redundancies, TUPE, collective bargaining, training, and representation in grievances and disciplinary hearings. This means union reps having to disclose that to employers, but those amounts of time will vary on a weekly basis, and in many workplaces it will be difficult for employers to decide what counts as time spent on collective bargaining as opposed to time spent on redundancy, on TUPE or on training, because these activities often take place at the same time, including when a lay official meets with a full-time union official or the employer to discuss a basket of issues.

Lobbying: Government Grant Agreements

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Tuesday 19th April 2016 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, the press release that announced this said that it was as a result of research done by the IEA—so that lobbying led to this, with no consultation either with the academic world or anyone else. If I have understood the Minister, he is now willing to exempt academic research but not research carried out by other organisations, be they charities, the Marine Management Organisation, English Heritage or any others. Will the Minister consult with them before they are restricted from giving information to Parliament, government and, under the rules, to the European Union?

[Lord Bridges of Headley]

My Lords, I understand what the noble Baroness is saying. Her concerns have been heeded in the sense that the consultation on the implementation of this clause began the minute that the clause was announced in February. As regards curbing freedom of speech by charities, that is not the case. Let me remind your Lordships that charities make up only 7% of grant spend. Charities can continue to use any other funds to lobby government. Indeed, in the DCLG, where this clause has been in place for the past 18 months, Shelter, which has been receiving a grant from the DCLG, has continued to lobby this House and the other place on the contents of the housing Bill, for example.

Trade Union Bill

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Wednesday 16th March 2016 Lords Chamber

[The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)]

My Lords, I begin by saying that I have read the previous debates and have met a number of your Lordships; I thank those I met for their time. I acknowledge the misgivings that have been expressed about this policy and I thank the noble Baroness, Lady Hayter, for extending the hand of friendship and co-operation on this. Before I address the point on scope, I repeat a key point to your Lordships that I wish no one to forget: it is not the intention that facility time is to be banned. As has been said—I repeat again—trade union representatives provide a valuable role in many organisations and facility time will always have a role to play throughout the public sector.

On scope, we are clear in our aim to cover core public bodies—employers that the taxpayer would expect to be covered by public sector transparency regulations. To meet this aim, our approach is to include public sector bodies in the regulations only if they meet the following policy aims. First, bodies that we wish to capture are already listed in Schedule 1 to the Freedom of Information Act 2000 or the Freedom of Information (Scotland) Act 2002—I refer to both of them as FOIA. We believe that whether a body is in scope of Schedule 1 to FOIA is a good indicator of whether they are a public authority for the purpose of Clause 12. However, to include all the employers on Schedule 1 to FOIA would be too wide for our aims. I totally take the point that the noble Baroness makes about small organisations. We will filter organisations out of this list where their inclusion would not be appropriate. The regulations will place obligations only on employers with more than 49 employees and at least one trade union representative. FOIA Schedule 1 includes several bodies that do not currently meet this criterion and will thus not be obliged to follow the publication. They will, however, appear in the regulations and it will be for any such body to appropriately exclude itself if it does not meet the criteria. This is in recognition of the fact that the size of organisations and their trade union membership is likely to fluctuate over time.

Next, in the event that at some point in the future the Government were to identify a body that is not in Schedule 1 to FOIA and not capable of being added, we would seek to capture such a body, relying on the powers in Clause 12(9), only where the body has not been set up to function in a predominantly commercial, competitive, or market-facing way; has more than 49 employers and one or more trade union representative; and has functions of a public nature and is funded wholly or partly from public funds. Furthermore, if the Government wish to add new bodies that pass these tests, they propose to amend the Bill so that the powers in subsection (9) are exercisable by affirmative resolution. This House would then have the chance to scrutinise and debate any regulations that the Government bring forward to include these bodies that are not public authorities but carry out functions of a public nature.

In the light of the noble Baroness’s wish to consider the content of my letter and potentially revisit this issue at Third Reading to discuss it further, I hope that the approach set out my letter, which the Government intend to stand by, will enable us to avoid revisiting this issue in depth at Third Reading. I have already also referred to the Government’s commitment to make the extension of the list an affirmative resolution procedure before the Bill leaves this House. On this basis, I hope that the noble Baroness will feel free to withdraw her amendment this evening.

[Baroness Hayter of Kentish Town]

I thank the Minister for that. I think we have made progress. The Bill will probably need to be amended to take account of the approach that the Government are now taking. On the basis of our looking forward to future discussions and returning to this, we hope very quickly, at Third Reading, I beg leave to withdraw the amendment.

Recall of MPs Act 2015 (Recall Petition) Regulations 2016

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Thursday 11th February 2016 Lords Chamber

[Lord Bridges of Headley]

I certainly undertake to do that and to give it some consideration. It is another very valid point.

The noble Lord, Lord Lipsey, asked me to interpret Regulation 132. I will try to do so. It prevents people being paid—in other words, employed—to canvass on behalf of either side of the petition. To do so is an offence of illegal employment.

These regulations deliver on the manifesto commitments of the three major parties in the previous Parliament to introduce a system of recall. As I said in my opening remarks, I hope that they will go some way to restore the public’s faith in our elected representatives in Parliament. I commend them to the House.

[Baroness Hayter of Kentish Town]

My Lords, I thank my noble friends Lord Lipsey, Lady Donaghy and Lord Campbell-Savours. My noble friend Lord Lipsey said that we had known each other a long time; it is actually some 45 years since we started work together. The last point, which my noble friend Lord Campbell-Savours raised, about it being illegal to canvass, is very interesting. That means that an MP’s member of staff presumably could not work on behalf of the MP. I had also read and reread that. Presumably it means that no paid official of a party will be able to do it. It would be helpful for the Minister to be absolutely clear in writing that personal staff will not be able even to go around with the MP.

I will be brief because there are only two points I want to leave with the Minister. He has not answered the point about overseas voters. The significance of that is that there is no upper limit on what can be spent on a recall petition. The MP could spend only up to £10,000, but there could be 10 or 20 accredited campaigns working for a recall. Each of those 10 or 20 campaigns could spend up to £10,000. Indeed, there could be 20 or 30 campaigns spending up to £500 without even having to say where their money comes from. There is no upper expenditure on this. If the vote is extended beyond the 15 years to people who have been out of the country, these campaigns could be funded solely from outside the country. I do not expect the Minister to answer on that now because he has obviously chosen not to, but it is something that anyone who wants to keep big money out of politics has to think about.

I also remain worried about intimidation. The Minister said that people can, of course, apply for a postal vote, but that is only if the intimidation starts before the closing day for the postal votes. It is very likely, if people queue up and look at who is going into a signing place, that it would be much closer to the closing date, by which time it would be too late to apply for a postal vote. So the question of noting who goes in remains an issue.

Above all, my noble friend Lady Donaghy has shown the greatest wisdom today in her hope that this never has to happen. That would keep all of us most content—but, as my noble friend Lord Campbell-Savours said, if it happens it will be highly controversial. The way that these regulations have been written, and particularly the fact that they were not voted on either in this House or the other place, is regrettable. I thank the Minister for his time today, and my noble friends for supporting me on this Thursday afternoon. At this stage, I beg leave to withdraw my amendment.

Charities: Government Grants

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Wednesday 10th February 2016 Lords Chamber

[Lord Bridges of Headley]

Of course I agree with that, but I strongly believe that this clause does not do that. I point out that for a number of years government departments have included a provision that taxpayers’ money should not be used for political activity and this new clause simply clarifies what that means.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, on Tuesday last week we completed the Charities Bill. At 8.32 am on Saturday the Government announced this new policy. Did the Minister know about it on Tuesday when we completed it and would it not have been better to announce it then, when there could have been a debate on this important matter in Parliament, rather than issuing it by diktat?

[Lord Bridges of Headley]

On the first point, I assure the House that this actually goes much wider than just relating to charities. As I said, it relates to numerous other points. I would also draw your Lordships’ attention to that fact that this has existed in the DCLG and been piloted since February 2015. The DCLG has not received any complaints that it has hindered the work of those charities involved.

Constitutional Convention Bill [HL]

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Friday 11th December 2015 Lords Chamber

[Baroness Hayter of Kentish Town]

Indeed, but I understand that the Government were very happy to overturn the votes of this House, which decided that 16 and 17 year-olds should be able to vote in the referendum. There are bits of the electoral system that are worth looking at, if only because the Government seem unable to hear either the will of this House or the views of 16 and 17 year-olds.

[The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)]

My Lords, I will make just a few, short points. First, I again congratulate the noble Lord, Lord Purvis, on this Bill. I always find it interesting to discuss these points. I am grateful to the noble Lord, Lord Steel, for being here and heed what he and the noble Lord, Lord Kerr, said. I will not repeat all the points I made at Second Reading. All I will say, briefly, is that this very short interchange shows that we will probably need a convention about the convention because it is so clear that we cannot quite agree on any of the terms. My noble friend Lord Forsyth called it ambitious. I think that is mandarin-speak for “virtually impossible to agree” on all these points. He said he was looking for the kitchen sink. We have the kitchen sink and, in the next debate, I think we are about to discuss the wiring and plumbing.

--- Later in debate ---

[Baroness Hayter of Kentish Town]

My Lords, I am not absolutely certain that the Labour Party has a position on this. However, as it has never called for a written constitution, I am going to take it that the Labour Party is against a written constitution—or at least, I am. As I said at Second Reading, I had a lovely cartoon from the New Yorker showing bewigged, 18th-century gents writing the American constitution and then putting at the end, “And no one will ever alter this”.

I do not support my noble friend on this amendment. However, had he used the word “concordat”—something to get the relationship between the two Houses agreed, which in some sense goes to what the noble Lord, Lord Forsyth, said earlier about function; that we should agree what the role of the two Houses are—I would have thought that this was a brilliant amendment. The idea of us having that serious conversation is one that I absolutely support. There are really big questions about that. It is not just about whether we get to vote on statutory instruments. It is about the relative roles in that and how often it is used. Particularly when we think of our size, if we become smaller and still have no retirement age, we will have an increasingly older and smaller group of people doing that diligent work on statutory instruments. Those are important discussions. I like one part of the amendment, which is to give some serious thought as to the function of both Houses. But please, while we may not be bewigged we should not be setting in stone the way in which we work in the short term.

[Lord Bridges of Headley]

My Lords, I do not think it will surprise noble Lords to hear, at 12.50 pm on a grey Friday, that the Government do not support a written constitution. I agree much more with the noble Lord, Lord Kerr. He spoke very eloquently about the need for flexibility. Of course, as noble Lords will know, this country did once try a written constitution—in 1653, if memory serves me right. It lasted for about four years with the Instrument of Government. It was not a particularly happy time in our nation’s history and we have survived quite well without one for getting on for 400 years. As the noble Lord, Lord Kerr, says, we have flexibility borne out of various parts of our legislative past—the Magna Carta, the Bill of Rights, the Act of Settlement and the Great Reform Act. Parliament has been adding to that canon, and advancing and evolving the constitution for centuries. That is a fundamental part of our polity.

On the specific clause, as my noble friend Lord Forsyth made clear, this is adding even more to the work of the superhuman convention, manned by the world’s constitutional experts, who will be working frantically to get it all done. I would just point out that were this Bill to be passed, there is no detail on the scope or content of the written constitution. As this short debate has highlighted, we are not entirely clear what would be included and what would not—maybe the entire process of the convention itself. Furthermore, it is not entirely clear that the Secretary of State would be able to make any further provision or provide any guidance on this constitution when it was presented, which was a point made so eloquently by my noble friend earlier. The convention would have superhuman powers not only in the sense of its ability to come up with solutions, but in the effect that it would have. Therefore, I fear that the amendment would not enhance the Bill but make it even less feasible.

House of Commons: Ministers

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 30th November 2015 Lords Chamber

[Lord Bridges of Headley]

My Lords, the noble Lord, as usual, makes an interesting point. I am sure it is one that he will wish to continue to make in future.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, is the real issue not that the Government do not like to be challenged, whether in your Lordships’ House, by Back-Benchers in the Commons or by the Opposition? How otherwise can the Minister explain that while the Chancellor apparently employs 10 political advisers at taxpayers’ expense, and the cost of special advisers to Conservative Ministers rose by £2.5 million over the past five years, the Government are cutting the Short money which helps the Opposition hold the Government to account?

[Lord Bridges of Headley]

Of course I understand the interest that the noble Baroness has in this issue, and she is quite entitled to ask this question. Taxpayer-funded Short money has risen year on year from £6 million in 2010-11 to £9 million in 2015-16. That is a 48% rise. Subject to confirmation by Parliament, the Government propose to reduce Short money allocations by 19%. This will save in the region of £10 million. Under these proposals, state funding to opposition parties will be greater than the special adviser pay bill.

Government Digital Service

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Tuesday 13th October 2015 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, yesterday we gave a Second Reading to the Enterprise Bill to help businesses, big and small. However, we know that on average businesses are losing 33 working days a year because of outdated government online services. This is where they need help. Can the Minister therefore tell the House whether the Cabinet Office is one of those departments refusing the cuts that other bits of the Government are trying to make to it, and what guarantees business can have that there will be no cuts to the Government Digital Service?

[Lord Bridges of Headley]

My Lords, I may have been in this House a very short time but I think your Lordships would agree that it is probably more than my life is worth to start predicting the outcome of the spending review. However, I am delighted to use this opportunity, given that the noble Baroness has asked me this question, to remind the House and indeed the Treasury, should it be listening, that during the last Parliament £1.7 billion was saved thanks to digital transformation and the Government Digital Service cost £58 million. This is therefore a very good return on investment. Obviously, discussions continue, but I entirely share the noble Baroness’s view that we need to do more to support businesses.

Charities (Protection and Social Investment) Bill [HL]

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 20th July 2015 Lords Chamber

[Lord Bridges of Headley]

My Lords, at the start of the debate, I said that I was delighted at the level of cross-party agreement on so much of this Bill. However, this is clearly one of the very few clauses and amendments on which we differ. I have obviously listened to the speeches that have been made this afternoon and read the debates with other points that have been raised by a number of noble Lords in recent weeks. Clearly, a number of noble Lords feel extremely strongly on this issue. We have heard passionate speeches from the noble Lords, Lord Kerslake, Lord Palmer and Lord Campbell-Savours, to name just three.

While I may disagree with some—and in some cases a little more than some—of what has been said, I obviously respect the arguments that have been made. As has been said by a number of noble Lords, I know that my right honourable friend the Secretary of State for Communities and Local Government will read this debate with not just interest but great care.

Noble Lords will be pleased to hear that I will not bombard them with statistics or facts to try to underpin the rationale behind the Government’s policy for right to buy—for which, as noble Lords all know, the Government secured a mandate at the general election. Neither, at the risk of aggravating and frustrating noble Lords still further, will I get into the detail of how that policy will work. I regret that I cannot do so and I will not insult noble Lords’ intelligence by trying to pretend that the right-to-buy policy has nothing to do with the charities sector—of course it does. But I ask noble Lords to consider the point has been made by a number of previous speakers—surely the time and place to debate the right-to-buy policy will be when the Housing Bill is before Parliament and the details of that policy are before this House.

Furthermore, many of us agree that although the Bill touches on the issue of other areas of law such as the financing of terrorist organisations, we should not in that case attempt to review counterterrorism legislation in the Bill. So, too, here and now is not the time to debate and decide on housing policy and how it interacts with the charities sector. Furthermore, I know that my noble friend Lady Williams of Trafford has an open door to any noble Lord who may wish to discuss this with her in the weeks and months ahead.

On the actual amendment, I beg to differ with the noble Baroness, Lady Hayter. It does not simply state the existing legal position. I will explain why. The law governing charitable assets is rooted in case law. As I am sure many noble Lords will agree, a real difficulty with creating a simple statutory provision for a large area of case law is that it will invariably fail to cover the many complexities that often arise, and it will be exceptionally difficult to find a satisfactory expression that would properly cover the explanation and nuanced analysis that is often afforded in judgments in case law. Moreover, there is a real danger of agreeing to a statutory provision that could give rise to unintended consequences.

The wording in the amendment that charities may not,

“use or dispose of their assets”,

will cover property assets other than land, such as investments. This raises a whole separate issue with the duties that apply to a charity’s assets that are not land.

Furthermore, Charity Commission guidance on the disposal of land makes clear that such disposal must be in the best interests of the charity and in furtherance of the charitable purposes, or for the best price available, rather than be consistent with charitable purposes. These concepts have very different meanings, the latter being much wider in its potential application. Giving the Charity Commission a new and enhanced role in policing the disposal of charity assets is inconsistent with the current aim of helping the commission to focus on its core regulatory responsibilities. Requiring it to ensure that charities are not required to dispose of assets would be more than just an unwelcome distraction for the regulator.

As I mentioned in Committee, there is also the preserved right to buy in relation to housing associations, and the right to acquire. These existing rights could be undermined by this amendment.

I hope that noble Lords will see that the amendment proposed is problematic for a number of reasons. That being said, I repeat: I recognise that there are significant concerns about how the proposed policy to extend right to buy will be applied to charitable housing associations, but I would respectfully reiterate to your Lordships that the time and the place for that debate is the housing Bill. Finally, although we clearly disagree on this issue, I should like to repeat my thanks to the noble Baroness, Lady Hayter, for her co-operation on and contribution to many aspects of the Bill. I hope that, on reflection on this point, she will decide not to press the amendment.

[Baroness Hayter of Kentish Town]

My Lords, I thank the Minister for that and I thank all speakers who, on the substance, it seems to me, agreed with what we are trying to achieve. The difficulties are over whether this is the right Bill or the right wording, which basically says that the Charity Commission must make sure that,

“independent charities are not compelled to use or dispose of their assets in a way which is inconsistent with their charitable purposes”.

If the wording can be better than that—if it should be something such as the “best interests” of charities, as the Minister says—I will be very content, if the amendment is passed, to work with him at Third Reading to make the wording correct and acceptable to the Charity Commission and to the charity lawyers, who know far more about wording than I do.

On the issue, there are two things that I want to say. The first comes from what the noble Baroness, Lady Barker, said. This is a Bill about the protection of charities, and we are trying to protect charitable assets so that the money can be used for what the donors wanted when they bequeathed it. The idea of putting it on to the Charity Commission is that, basically, somebody has to protect charities from being compelled by someone else—not by their charitable trustees—to do something with the money that those who gave it did not intend.

The noble and learned Lord, Lord Mackay, asked about compulsory purchase for a road. In a sense it is always the public sector that does that; it is nationalisation. The land is taken over so that a road can be built. I said in a meeting with the Minister that it was not normally his party that wanted to nationalise things, so I am interested that over charitable housing that is what the Government want. We are talking about a swathe of housing—not one or two in the way of a new train line—that over time will undoubtedly be held by the private sector.

My second issue is that we are not talking just about housing—albeit that we have heard about the Peabody, Keswick and Sutton housing associations. We are also talking about that wider big society. I used to work in alcohol misuse issues; we ran a lot of social care. It could be our assets, under another Bill, where the Government felt that they wanted to use them in a certain way that we as an independent charity, which had raised the money, did not want to do. We have heard about the National Trust—or indeed, it could be hospitals or hospices.

The issue is not just about housing, which is why it is not appropriate to leave it to a housing Bill. We want to state something very simply: where money has been donated to an independent charity for a particular purpose, the trustees must abide by their trustee duty to make sure that the assets are used there. That is something on which this House would like to take a view.

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[Lord Bridges of Headley]

My Lords, I rise to move this amendment, which is also in the names of the noble Baroness, Lady Hayter, and the noble Lord, Lord Watson of Invergowrie.

Despite what has just happened, I must start by paying tribute to the noble Baroness, Lady Hayter, for her pursuit of this cause. The very first time I met the noble Baroness, just minutes after my introduction, she highlighted this flaw in the Bill, with great charm but with her characteristic force of conviction. As I have said before, I am in complete agreement with her and other noble Lords in wanting to protect children and vulnerable adults from the risk of abuse in charities.

In Committee, the noble Baroness presented a compelling case for automatic disqualification to extend to sex offenders. I am pleased, therefore, to respond with Amendment 10, which will do just that. I was delighted that the noble Baroness, Lady Hayter, and the noble Lord, Lord Watson of Invergowrie, put their names to this amendment. I think it goes to show the breadth of support for this measure. I just hope that the noble Baroness will not reprimand me for stealing her thunder.

Amendment 10 adds a new case, case K, to the criteria that give rise to automatic disqualification from charity trusteeship and senior management positions. Case K is a person who is subject to the notification requirements in Part 2 of the Sexual Offences Act 2003, often referred to as being on the sex offender register. Such a person is considered to require monitoring in order to manage the risk of sexual harm they may pose to the public. Our policy rationale is that they are unfit to be in a position of trust, controlling funds held and activities carried out for the public benefit, and should be disqualified from being a charity trustee or being in a senior management role within a charity unless and until they are no longer subject to notification requirements or are granted a waiver from the disqualification by the Charity Commission; for instance, the commission might consider it appropriate to grant a waiver to enable someone to take up a position in a charity that works with ex-offenders.

The unfitness results not just from the fact that it would damage public trust and confidence in charities if someone in that position were able to serve as a trustee or in a senior management role but because people in such roles may well have privileged access to children or vulnerable people, even if the charity is not routinely working with such groups; in other words, its trustees and employees would not necessarily be subject to Disclosure and Barring Service checks. The noble Baroness, Lady Hayter, gave a good example in Committee of a charity which provides a community hall that is used by Girl Guides or for children’s parties.

As I said in Committee, automatic disqualification of sex offenders does not in any way mean that charities can lower their guard. Charities must still have in place robust policies and procedures to safeguard their beneficiaries, and where charities are undertaking regulated activity they will still need to obtain Disclosure and Barring Service checks. But the amendment will, I am sure, result in greater protection of children and vulnerable adults from risk of abuse in charities. Given the number of historic cases that have come to light across all sectors of society, anything that reduces that risk is to be welcomed. I thank the noble Baroness and the noble Lord for their support, and I commend the amendment to the House.

[Baroness Hayter of Kentish Town]

My Lords, I have only two things to say: thank you and sorry. The Minister had only just taken off his red gown after being introduced when I got at him about this, and that does need an apology. I also want to thank him for engaging with us on this, for having got exactly the right amendment and for describing it far better than I could. I also think it shows the value of your Lordships’ House that, on an issue such as this that does not divide us politically, we have the same aims of protecting young people and we are able to work together to move this forward. My noble friend and I are very happy to support this amendment.

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[Baroness Hayter of Kentish Town]

My Lords, before I turn to the wording of this amendment, I say that in Committee the noble Baroness, Lady Barker, had to hear about the horrendous experience that Barclays Bank had just put my uncle though; he has Alzheimer’s. In response to her comments, I have today tabled a Question for Short Debate about how banks deal with vulnerable clients, so perhaps we can move together on that.

Unfortunately, other than on that, I take a different view on the amendments the Government have tabled. I thank the Minister for bringing forward these amendments. They are significant, and we warmly welcome them and the work set in hand with the committee he mentioned, whose recommendations we anticipate the second week in September. Looking round at the members, they will keep to that deadline, I am sure.

I, too, pay tribute to the Cooke family, who had to go through the inquest just last week, but who have been willing to share Olive Cooke’s experience of being bombarded with requests for charitable donations. I also join the Minister in congratulating the Daily Mail—coming from me, it may not like that—on its investigation and campaigning which revealed unacceptable practices, shortfalls in monitoring by the charities themselves and, as the Minister said, the weakness of the current self-regulation model.

It is perhaps odd that we have a regulator which does not regulate one vital bit of charitable activity, which is fundraising. This lies in the hands of a voluntary organisation, the Fundraising Standards Board, which works to a code adopted by the Institute of Fundraising. Three years ago, the noble Lord, Lord Hodgson, gave it five years to get more into line, and it has not yet done so. The Fundraising Standards Board and the Institute of Fundraising have not done their work particularly well. Interestingly, the code does not outlaw nor even limit cold calling, or even require caller line identification. The Fundraising Standards Board, in addition to signing up only two-thirds of those who ought to belong, does not publicise itself, so no one knows to take complaints there, and it does not monitor compliance, or it would not have to have been Mrs Cooke’s family or the Daily Mail that did that job. Even when it threw out a professional fundraising company, it seems to have taken it back in under another name.

That all lets down the charity sector and the enormous generosity of Britain’s charitable donors. I also believe, as noble Lords will understand from our amendment, that it questions whether self-regulation can work in this sector. Hence our Amendment 16, which would require charities and professional fundraisers to belong to the standards board. We recognise that that would have enormous consequences should they be removed from membership for misbehaviour. The NSPCC, one of the charities let down by the professional fundraisers, itself favours compulsory membership of the Fundraising Standards Board as, in its words, the current self-regulation system is too weak. We also think that it is time that the Charity Commission’s reserve powers were brought into play. I am reassured by the Minister’s words that that can be done fairly quickly if the Minister feels it is necessary. So for the moment we want to put our amendment on hold, as we warmly welcome the Government’s own amendments and we await Sir Stuart Etherington’s report.

Government Amendment 14 achieves a number of things. First, and I hope the family can take the benefit from this, it can indeed be seen as Olive’s law; it will mean that something will be on the statute book as a consequence of her experience. Secondly, it puts into the Bill the essence of a code, describing as unacceptable:

“unreasonable intrusion on a person’s privacy … unreasonably persistent approaches for the purpose of soliciting or otherwise procuring money … placing undue pressure on a person to give money”.

As the noble Baroness, Lady Barker, intimates, the Charity Commission may well have to flesh that out a bit, but having that in the Bill is excellent. It makes it clear that such behaviour is unacceptable with regard to vulnerable people but also, in the Government’s words, to the wider public. We particularly welcome that; it is important. Oxfam’s submission to us, for example, concentrates very much on the vulnerable, especially those with Alzheimer’s. However, we believe that all unethical methods need to be stamped out, regardless of the target, so we welcome the Government’s wording on that.

Thirdly, the Government’s amendment will force large charities to state whether they are members of the FRSB. We hope, along with the Government, that that will shame non-members and their trustees because the trustees have to sign off in their annual reports their approach to fundraising and any complaints received. Boards of trustees will no longer be able to be grateful for the income without asking too many questions, as the Minister said. Importantly, the Government have set up what we think is a pretty powerful group—I am looking around at its members in the Chamber today—and we look forward to it reporting back before Third Reading about whether Amendment 14 will indeed do the trick. We welcome the group, as do the NSPCC and Oxfam, which has also suspended its contract with commercial fundraisers, and we look forward to its recommendations.

Should the group suggest that further amendments are needed, we will be happy to work with the Government to facilitate this. We might therefore want to pursue our amendment or some other at Third Reading, depending on what the Government’s review group advises and the Government’s own response to that. We have yet to be persuaded that membership of the FRSB should not be mandatory, or that the Charity Commission’s reserve powers should not be brought into force. However, we are reassured by the Minister’s words on this.

For the moment, I thank the Minister, and indeed his colleague in the Commons, who found time to meet us to discuss this, and for coming forward with such a good amendment. We will be very happy to support it when it is put to the vote shortly.

[Lord Bridges of Headley]

My Lords, I thank the noble Baronesses, Lady Barker and Lady Hayter, for their words. As with many other issues that we have discussed and will discuss, this is clearly one where we have clear agreement on both the changes that are necessary and the change that we want to bring about. I stress that the amendments we are looking at today represent a start of measures that are targeted at where we know the real problems have arisen: in fundraising agencies and where charity trustees have failed to ensure proper oversight of their charity’s fundraising practices. As the noble Baroness, Lady Hayter, just said, the review that Sir Stuart is conducting is now under way. If further legislation is needed, we will be able to consider that when the Bill goes to the other place. My honourable friend the Minister for Civil Society, Rob Wilson, has said that he will be happy to discuss the findings and recommendations on a cross-party basis; we will be happy to take that further.

As usual the noble Baroness, Lady Barker, made some forensic points on these clauses. I will attempt to answer them now, but if I fail to address them, I will be happy to pick them up with her after we have finished proceedings today. She asked who decides on the definition of “unreasonable”. In the first instance, the charity itself decides in setting the terms of its fundraising agreement, but ultimately the Charity Commission can intervene, using its existing powers, if the charity is not doing enough. That said—and this is an important point—the Charity Commission has already committed to updating its fundraising guidance later this year and will take these new requirements into account when it does so.

The second good question the noble Baroness asked was: what are the sanctions where charities are deficient? Here, it would be for the charity commission to decide where the charity fails to meet its obligations. The third question was: how will a member of the public know what to do if they feel that the charity is not meeting these new requirements? That is an extremely good point, and I can see that Sir Stuart’s review is absolutely key. We need to ensure that we focus on this issue from the point of view not just of the charity but of the public as well. Finally, as regards the number of complaints, that is another good point that we need to return to with Sir Stuart and in guidance, and I will make sure that is reflected by the Charity Commission.

To conclude, these amendments, coupled with the review being undertaken by Sir Stuart Etherington, give us a real opportunity to restore public trust and confidence in charity fundraising where, in the last few weeks, it has been found wanting.

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[Lord Bridges of Headley]

I am sorry if I displease the noble Lord still further this afternoon, but any concerns about inappropriate language or material on the part of a charity should be referred to the Charity Commission, which is the independent regulator and will assess those points on a case-by-case basis. The Charity Commission can and does investigate these sorts of concerns in accordance with its risk framework, which sets these things out. I am sorry if the noble Lord dislikes that answer, but that is it.

[Baroness Hayter of Kentish Town]

My Lords, I thank my noble friend Lord Judd, who ran Oxfam, and my noble friend Lady Pitkeathley. If my memory is right, the Cabinet Office made Carers UK charity of the year this year, so I am sure that the Minister will have heard particularly from her on that. The Cabinet Office made a great choice.

I thank the Minister. I very much welcome his endorsement of the premise behind this. He gets what we are about. I welcome what he said about the Government listening carefully to the wise words that we know we will have from the noble Lord, Lord Hodgson. We await his report. Having on record his acknowledgement of the role that advocacy can play on behalf of those without voices is to be welcomed. We look forward to that report—no pressure there, then—from the noble Lord, Lord Hodgson, but for the moment, I beg leave to withdraw the amendment.

Charities (Protection and Social Investment) Bill [HL]

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 6th July 2015 Grand Committee

[Lord Bridges of Headley]

My Lords, this is a minor and technical amendment to the commencement provision in Clause 15. At present, subsection (3) of the clause provides for the Bill to come into force on whatever day is specified in regulations made by the Minister. Subsection (4)(a) states that the regulations may specify,

“different days for different purposes”.

The amendment would amend subsection (3) so that Clauses 14 and 15 come into force on the day the Act is passed; that is, on Royal Assent. Clause 14 imposes a duty on the Minister to review the operation of the Act. This should apply to the Act regardless of when other provisions are brought into force, so there is no need to delay commencement following Royal Assent. Clause 15, “Short title, extent and commencement”, contains general provisions, and it is good practice for Acts to make it clear that such general provisions come into force on Royal Assent. The remainder of the Bill would, as now, come into force on the day specified in regulations made by the Minister. This allows for commencement of the substantive provisions of the Act at an appropriate time which, in accordance with the convention, will be at least two months after Royal Assent. I commend the amendment to the Committee and I beg to move.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, the Minister may say that it is a minor amendment but I happen to have a very long speech here. However, he will be pleased to know that I rise only to thank him for introducing the amendment. When we started on day one, my noble friend Lord Watson wished him well in the Committee stage and promised that we would deal with him gently. I hope he agrees that we have done just that.

This is an opportunity for me to thank the Minister for his patience and thoughtfulness, although maybe not his flexibility, in responding to our amendments. Of course, that has enabled us to hear all the Government’s arguments against our changes, which I hope will fortify and sharpen our case as we bring some of them forward on Report on 20 July.

I also take advantage of this moment to thank, in particular, my noble friends Lady Jones and Lady Pitkeathley for their contributions at this stage. I also give particular thanks to my noble friend Lord Watson for the heavy lifting on many of the amendments. It is the first time that we have worked together in this capacity, but I hope it is not the last. For the moment, we are happy to support this very minor amendment.

[Lord Bridges of Headley]

I am very grateful that that was not the speech that the noble Baroness was about to give. For one moment my heart sank and I wondered what I might have missed at this late stage. She has been very kind and has indeed dealt with me very gently, as has the noble Lord, Lord Watson, for which I am very grateful. I also extend my thanks to everyone—the noble Baroness, Lady Barker, my noble friend Lord Hodgson and the many others who have made this debate extremely fruitful. I said at Second Reading that this would be a very good opportunity to kick the tyres of this policy—although I know that it has been kicked for quite a long time—and we have certainly done that. We have had some good debates on a range of topics, some in the Bill and some not, and those debates have been incredibly well informed.

I put on record that I have agreed to meet a number of noble Lords between now and Report in two weeks’ time. I look forward to meeting, for example, the noble Baroness, Lady Hayter, to discuss her proposal to extend automatic disqualification to sex offenders, something on which I am very sympathetic. I look forward to dancing on the head of a pin with the noble Baroness, Lady Barker, and my noble friend Lord Hodgson as we define social investment still further. A number of other points on the Bill were raised by the noble and learned Lord, Lord Hope of Craighead, which I will look forward to discussing, as I will the points raised by the noble Lord, Lord Bew, and the noble Baroness, Lady Deech, on unincorporated charities. As I said, I also intend to meet my noble friend Lord Moynihan to discuss his proposals on sport. So all in all it looks as though I have a very busy couple of weeks ahead of me.

Charities (Protection and Social Investment) Bill [HL]

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Wednesday 1st July 2015 Grand Committee

[The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)]

My Lords, I very much welcome this debate. It is exactly the kind of debate that we need to have on these issues. I am grateful for all the contributions made by a number of your Lordships, especially the noble Lord, Lord Judd, who made a very eloquent contribution.

I make it categorically clear that the Government support charities’ right to campaign within the law. Many charities use campaigning and advocacy effectively and legitimately to support their charitable purposes and beneficiaries. This role is important to charities’ independence and is certainly of value to society. Campaigning for changes to the law or policy that would support a charity’s purposes is a legitimate activity for charities, and one in which charities in this country have a long and proud tradition, as we have heard from the noble Lord, Lord Judd, and the noble Baroness, Lady Pitkeathley. The position that they occupy is largely derived from case law, and the Charity Commission’s CC9 guidance is clear on what charities can and cannot do. Its view of case law is clear: political activity by charities is an acceptable means of supporting their charitable purposes but it cannot be the sole and continuing activity of the charity, as that would indicate a political rather than a charitable purpose. So charities can undertake political campaigning or political activity that seeks to support the delivery of their charitable purposes where trustees consider it an effective use of their charity’s resources, but charities must never engage in political activity or support for a political party or candidate.

In response to the point made by the noble Lord, Lord Judd, about neutrality, I say that a charity can campaign strongly on an issue linked to its purpose, as long as it is not endorsing or supporting a particular party. As I said, political campaigning or activity cannot be the sole and continuing activity of a charity, and charity trustees need to ensure that political activity remains a means to an end and does not become the reason for that charity’s existence. Charities must, when undertaking political activity, seek to retain their independence from political parties. As the Charity Commission’s guidance makes clear, in the political arena, a charity must stress its independence and ensure that any involvement it has with political parties on the particular views of the parties is balanced. Trustees also need to ensure that any political activity is an effective use of the charity’s resources. In response to the question of the noble Lord, Lord Lea, about gauleiters, I am sorry, but I am not going to get into individual cases and words used in particular literature. It would be wrong for me to offer a view on whether a charity is on the right or the wrong side of the rules. That is rightly a question for the Charity Commission on the basis of the evidence it receives.

I turn to the amendment. Attempting to put into statute law a provision of case law risks changing the boundaries of what is permitted. Even if the boundaries of the law were not shifted by a statutory definition, one would still expect legal challenges to test the “new” boundaries of the law. Further, putting it in the Bill risks politicising charities’ right to campaign. Cabinet Office Ministers are responsible for charity law and would be responsible for this provision. That would leave it open to political interference over time—not that I am suggesting that any such interference would take place, but the risk would be there. I would argue that instead it is much better to have a case-law provision firmly in the realm of the independent regulator and courts.

One might question whether Amendment 14 permitted charities to support political parties—for example, by allowing charities to undertake political campaigning—without defining exactly what that means. The Charity Commission’s CC9 guidance runs to 31 pages. Trying to condense the legal underpinning into a short statutory provision that is five lines long, while attractive from the point of view of simplicity, would not properly reflect the current case-law position and could have unintended consequences.

In recent years, there has been a similar debate about whether the meaning of “public debate” could be distilled into a statutory definition. This is another area where the Government believe that we are better served by a long-standing case-law position supported by clear guidance than by attempting to define a solution in statute.

There has been discussion of the transparency of lobbying et cetera Act. It was not the Government’s intention that the changes to the rules for third parties campaigning at elections made by the Act should prevent charities and campaigning groups from supporting, engaging or influencing public policy. The Act is designed to ensure that campaigning by third parties to influence an electoral outcome is properly regulated, and there are few circumstances in which legitimate charity campaigning on policy would be caught. Very few charities registered with the Electoral Commission for the 2015 general election. It is worth noting that the test for “controlled expenditure” provided for in the Act is the same as was in operation for the 2005 and 2010 general elections: namely, only expenditure which,

“can reasonably be regarded as intended to promote or procure electoral success of a party or candidates”.

The Electoral Commission published guidance for third parties and engaged with a range of third parties in formulating this guidance. As my noble friend Lord Hodgson of Astley Abbotts said, he is currently undertaking a statutory review of the rules for third-party campaigners at elections. He is taking evidence, and I certainly encourage all your Lordships who are interested in this matter to respond to and engage with him. We look forward to his recommendations later in the year.

I turn briefly to the Charity Commission guidance. The commission has also monitored charities’ political activity and observance of its guidance during the election campaign, and is considering the findings from that monitoring and other issues relating to its current guidance. The commission will, I am sure, study the findings of my noble friend’s statutory review; I know that it has been engaging throughout. As I said at Second Reading, the Charity Commission has said that it keeps all its guidance under review to ensure that it remains relevant and up to date. If the commission considers that revisions need to be made to its CC9 guidance later, it has committed to saying so publicly and to consulting widely.

As has been said, there have been cases where charities have overstepped the mark of what is allowed under charity law or have failed to protect their independence by undertaking political activity that gives or risks the impression of being party political. In general, the numbers of cases that the commission takes on that are related to campaigning and political activity are low—in 2013-14, there was only one inquiry and a handful of operational compliance cases. However, where they occur they are often high profile and have significant impact. In the run-up to the election, for example, there were some clear cases where charities overstepped the line. For example, some charities signed a letter in support of Conservative policy and another painted a political slogan on its roof. These are clear cases of a breach in the law and the commission’s guidance. People with concerns about political activity are able to question whether or not a charity has stuck to the rules on campaigning and political activity, and an independent regulator in the Charity Commission can look at the facts and will reach a judgment in each case on the basis of the evidence provided. That is absolutely right and proper.

To conclude, the Charity Commission’s guidance CC9 makes it clear that charity law recognises that campaigning can be a legitimate activity for charities and sets out the general principles. Charities can campaign to raise awareness and understanding of an issue or to secure or oppose a change in the law or government policy or decisions, as long as the campaigning relates directly to a charity’s purposes and beneficiaries. Charities must retain independence and political neutrality, must never engage in any form of party-political activity and must avoid adverse perceptions of their independence and political neutrality. In addition, they must not embark on campaigning to such an extent that it compromises their legal status as a charity. I firmly believe that the existing case law and guidance serve us well and that there are major risks in attempting a statutory provision. I therefore invite the noble Baroness to withdraw her amendment.

[Baroness Hayter of Kentish Town]

My Lords, I thank my noble friend and other noble Lords who have spoken in this debate. The Minister is right that this is an important issue to discuss. I disagree only with his conclusion, as it seems to me that he has endorsed the amendment—he agrees with every word in it and his only argument against it seems to be that it should be not in law but in 31 pages of Charity Commission guidelines. That is exactly the problem for trustees. However well written 31 pages of guidance are, it is not a great comfort blanket to trustees. I take a different view, which is that a clear statement that trustees can read is a much better way of ensuring that they know the law.

The Minister and I are as one on the content; the law as it stands is fine and we are both content with it. The issue is that the transparency Act reads differently and is constraining. The Minister was not quite right to say that the position was the same in the previous election, because in that election only printed documents were covered and it is easy to see whether they support a particular party. The range of activities now covered includes meetings, press conferences and possibly hustings. Indeed, the church raised the issue of hustings with the Minister at the time, as a number of churches had traditionally had hustings. It is interesting to note how many fewer hustings there were this year, owing to the fact that the definition of the sort of activities that would be covered was expanded so much. The Minister has not quite got the descriptor right in saying that the position was the same as before. I was also sorry that the Minister did not give us a slightly more thoughtful response to the point made by my noble friend Lord Lea. Perhaps he will consult the Charity Commission because clearly some important issues were raised and I hope he will follow them up.

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[Baroness Hayter of Kentish Town]

My Lords, I will not add to the case that has been made, but I would like to make a tiny point referred to by my noble friend about making complaints about the Charity Commission, which is quite hard to find on the website. The complaints procedure finally ends up with the Parliamentary and Health Service Ombudsman, which we welcome because that is an excellent ombudsman. From another part of the Government—although I think that it will be the Minister who will deal with this in due course—is an extremely welcome provision to bring about a merger of the Parliamentary and Health Service Ombudsman with the Local Government Ombudsman. That is something we will welcome when it comes here. However, perhaps the Minister can outline how that will facilitate complaints about any decisions made by the Charity Commission—not necessarily appeals because not every trustee will be able to raise the case, as we have just heard.

[Lord Bridges of Headley]

My Lords, I thank the noble Lord, Lord Lea, for the explanation behind his amendment. I shall pick up on the final point made by the noble Baroness, Lady Hayter. I will need to write to her as regards the complaints procedures and the changes to be made in respect of the Parliamentary and Health Service Ombudsman.

Perhaps I may begin by focusing on the actual words used by the noble Lord, Lord Lea, in his amendment,

“a proportionate, accountable, consistent, transparent and targeted manner”,

and whether the annual report of the Charity Commission should refer to these. I draw the attention of noble Lords to the annual reports of the Charity Commission headed Tackling Abuse and Mismanagement in Charities, and the stand-alone case reports in which it applies the principles of best practice. However, I should add that the commission tends to frame this in terms of proportionality. The Charity Commission’s annual report for 2014-15 was published just yesterday—I am sure that noble Lords took it to bed with them last night to read. In the section on promoting compliance, the commission explains its approach:

“We use our powers proportionately according to the nature of the issue, the level of risk, and the potential of impact. However, even where we have regulatory concerns, it may not, in some instances, be proportionate for us to formally investigate a charity”.

The commission’s annual report also includes a paragraph specifically focused on how it is supporting the Government’s commitment to better regulation. There is furthermore an extensive section on enabling, which sets out not only the commission’s permissions casework—making schemes and so on—but also the work it has undertaken to prevent problems arising in the first place by making trustees aware of their duties and responsibilities, which is a key principle of proportionate regulation.

I turn now to the Tackling Abuse and Mismanagement in Charities reports. In these the commission is at pains to include some cases which show that it does not always have to make significant regulatory interventions, especially when the trustees who co-operate are either able to put the problems right themselves or can demonstrate that the initial concerns cannot be substantiated. For example, last year’s report set out the commission’s proportionate approach, stating that:

“As an independent, non-ministerial government department with quasi-judicial powers, we operate within a clear legal framework and follow published policies and procedures to ensure that we are proportional in our approach to tackling abuse and mismanagement”.

Finally, the commission’s published framework explains how it approaches all its work and helps to ensure that it continues to be proportionate, accountable, consistent, transparent and targeted. It sets out three questions that the commission answers before taking any action: first, does the commission need to be involved; secondly, if it decides that it does need to be involved, what is the nature and level of risk; and thirdly, what is the most effective way of responding? The commission prioritises issues that fall within three areas of strategic risk affecting charities: fraud, financial crime and abuse; safeguarding issues; and concerns about the terrorist abuse of charities. I hope that I have addressed the substance of the amendment, and furthermore these words are set out under Section 16 of the 2011 Act. The commission needs to abide by them in all it does.

Lastly, I want to address the specific case that may have given rise to the point made by the noble Lord, Lord Lea. As I hope he will understand, I am not able to go into the details of this case as it is an operational matter for the independent regulator, the Charity Commission. However, as the noble Lord said, he has been in correspondence with the commission and I understand that the chairman has replied and offered to meet him to discuss the case. I hope that the noble Lord will accept that offer. With regard to the specific questions that the noble Lord asked me directly, I will need to write to him in response.

I draw the Committee’s attention to the wider issue of registrations of charities. I point out that we know the number of registrations applied for and the numbers rejected. This year’s report sets it out in detail on, I think, page 41: last year there were 7,192 applications to register, 4,648 registration applications were approved, 2,248 charitable incorporated organisations were registered and 34 registration applications were formally refused.

I am concerned that the amendment that we are considering is not necessary. The commission already explains in its annual report how it is enacted in line with the principles of best regulatory practice. I therefore hope that I have been able to reassure the noble Lord, Lord Lea, somewhat, and that he will feel able to withdraw his amendment.

--- Later in debate ---

[Baroness Hayter of Kentish Town]

My Lords, I want to add little to what my noble friend Lord Lea has said, but it is a question that needs a serious answer. It does not take much imagination to see how such investment could be used by certain facilities to further enhance the advantages they already have, and therefore a serious response is needed. We look forward to hearing it.

[Lord Bridges of Headley]

My Lords, I will certainly give this amendment a serious response, and I thank the noble Lord for the interest he has shown in the Bill. It is of course appropriate that we should consider the range of organisations to which social investment will apply, and I recognise that that range is huge and complex. Many different types of charitable organisations will apply for and use this power, but for many of them it may not be relevant. I should take this opportunity to point out that this was known from inception and that the drafting of the power has been undertaken with the intention of placing the minimum possible burden on those charities by which, at least in the first instance, it is unlikely to be used.

However, I want to set out the case for including as wide a diversity of charitable organisations as possible within the scope of the power. The power of social investment is a permissive one which is intended to encourage trustees who can see the potential of social investment but have lacked the confidence to take it further. By providing a framework in law, the power of social investment will give confidence to charity trustees to add social investment to their existing armoury. The Government intend the power to be available to the full spectrum of charities, subject to some technical exclusions around those established by legislation or royal charter. It is important to make the power as widely available as possible in order to encourage its use and the benefits that will flow from it.

Charitable independent schools fall within this spectrum of charities, and in their charitable activities they seek to further educational purposes for the public benefit in a wide range of ways. Many of them are providing significant support to their local communities across a range of actions. It would therefore be inconsistent to deny them the use of this social investment power. Indeed, to answer the point put by the noble Lord, Lord Lea, I think it would be wrong to do so. I see no valid argument for why charitable independent schools should be arbitrarily singled out for exclusion from this power, and that is even more the case given their valuable existing contribution, as I have said, and their potential to do even more. It simply does not make sense to deny them the use of this permissive power to stimulate social investments. Indeed, it is encapsulated by the debate on this point so far. On the one hand there are those who appear to be doubting charitable status for private schools overall as they do not do enough, while on the other hand there are some who are imploring private schools with charitable status to do more.

I would argue that the social investment power would enable them to do more. Therefore it is entirely justified that they should be able to use it. We should give charitable independent schools every opportunity to increase their contribution to public benefit, and using the power of social investment represents such an opportunity.

That is my serious contribution to this debate and, on that basis, I hope the noble Lord will be willing to withdraw his amendment.

[Baroness Hayter of Kentish Town]

Can the Minister outline the checks that will be made to ensure that the social investment that, say, Eton makes will be for the wider public benefit of local schools in the area, rather than being used only for even more educational buildings for its existing pupils? What will be the checks on that?

[Lord Bridges of Headley]

The noble Baroness makes a good point. The overarching check will be that it meets the twin ends of the social investment to make some financial return and ensures that—the noble Baroness mentioned Eton—its charitable mission is fulfilled. We will have to make sure that it does.

Charities (Protection and Social Investment) Bill [HL]

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Monday 29th June 2015 Grand Committee

[Baroness Hayter of Kentish Town (Lab)]

My Lords, it is a sobering day even to discuss something with the word “terrorism” in it. I note that the House of Commons had a moment of silence at 3.30 pm, which maybe is a lesson for all of us.

On the amendment before us, the Committee will know that we have always been a bit jumpy about Henry VIII powers. However, it is very important to have this provision in the Bill because I did not move Amendment 7, which we dealt with on the first day of Committee last week, when we dealt with our attempt to include people on the sex offenders register on the list of those who are precluded—which, frankly, I take more seriously than someone who has got into a bit of debt and has an IVA. The Minister did not think that that was appropriate, and I hope very much that he is right and that we will not have a trustee who is on the sexual offenders register and then abuses someone, which would show that I was right and he was wrong. I do not want to be in that position, for fairly obvious reasons. However, if we find that the evidence is that we should have added those on the sex offenders register to those who are precluded from being a trustee, unless there is a waiver, this provision would allow the Minister, at that stage, to put right—unless we win the vote on Report—what would be an omission from the Bill.

There is always a problem with retrospective legislation, which would be the same now for people convicted for other things. Therefore, it will be important that the implementation date of any regulation is in good time to notify people so that they do not suddenly find themselves acting as a trustee and putting a charity at risk because of some new provision that then comes in. However, if it was something such as someone being on the sex offenders register, that is a known register and they would be able to be notified pretty easily that they could no longer act as a trustee. As a failsafe, albeit that any new measure should be by the affirmative procedure, we are content to see this power in the Bill.

[Lord Bridges of Headley]

My Lords, I am grateful to the noble Baroness, Lady Barker, for her explanation of this amendment, which was typically reasonable and eloquent. Subsection (4) of new Section 178A, inserted by Clause 9, would enable the Minister by affirmative procedure to make regulations to amend the list of criteria for automatic disqualification by adding or removing an offence.

The Joint Committee that undertook pre-legislative scrutiny of the draft Bill recommended that there be a requirement for any such regulations to be consulted on. The Government agreed and made provision, in subsection (21) of Clause 9, for there to be a requirement to consult on draft regulations where they add an offence.

The Delegated Powers and Regulatory Reform Committee’s first report of this Session stated that the committee was satisfied with the delegation and level of scrutiny in relation to this power when it had advised the Joint Committee on the Draft Protection of Charities Bill. It recognised that the Cabinet Office may in future need to take urgent steps to specify offences that should result in automatic disqualification, and considered that the affirmative resolution procedure would provide an appropriate safeguard.

The DPRRC, however, has raised a question about the commencement of new Section 178A and any regulations made under it. The last Government’s response to the Joint Committee’s report on the draft protection of charities Bill stated that we,

“commit to ensuring that sufficient time would be allowed before the commencement of such provisions”.

I will, therefore, happily provide a commitment to your Lordships that a disqualification would not take place under new Section 178A in relation to a person previously convicted of a specified offence until at least two months after enactment of the section and, in all but exceptional circumstances, until at least two months after the date that any regulations are made under subsection (4). We would want to ensure there was sufficient time to notify charities of the new offences.

When the Bill becomes law, we will publish an implementation plan that will set out when the different provisions of the Bill will be commenced. This will include the timetable for commencement of the automatic disqualification provisions under new Section 178A. The Charity Commission has said that it is planning a wide-ranging communications strategy in order to give those affected by automatic disqualification a fair opportunity to learn of the relevant changes before they come into force. Where we undertake any consultation, we will ensure that it is compliant with the compact.

I know that the Lords Constitution Committee has also considered the power to add offences. Its second report of this current Session states that this power to add new offences is not explicitly constrained in its scope, so perhaps I can provide some assurances to your Lordships on how the power would be used, and address a number of the points made.

First, while it may be considered unnecessary, I should nevertheless point out that there are no plans to exercise the power. Its purpose is to enable Ministers in future to amend the list of offences as new criminal offences are created which may be identified as appropriate for automatic disqualification, or criminal offences currently listed may no longer be appropriate, meaning the list needs to be updated. The prospect of a power to amend the list of offences was raised in consultation last year and was generally well supported by respondents, provided the power is subject to the affirmative procedure.

It should go without saying that, in considering any new offence to add to the list, there would need to be a clear rationale for adding that particular offence. The offence would have to be relevant to a person’s fitness to act as a trustee. We would set that out in consulting on the addition of any new offence. That consultation is a statutory requirement. Of course, the safeguards of the public consultation and the affirmative resolution procedure in Parliament—a point my noble friend Lord Hodgson of Astley Abbotts raised—should also provide a significant measure of assurance.

I hope that I have been able to give sufficient assurances to your Lordships on how this power would be used, and invite the noble Baroness to withdraw her amendment.

Charities (Protection and Social Investment) Bill [HL]

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Tuesday 23rd June 2015 Grand Committee

[Lord Bridges of Headley]

My noble friend makes a very good point about the information exchange between agencies across government, and I am more than happy to pick that up with him in writing or at a later stage.

I turn to the noble Baroness’s Amendment 11. This amendment seeks to empower the Charity Commission to disqualify an entire trustee board where it collectively fails to ensure adequate protections for children who are the charity’s beneficiaries. Later on we will come to debate Clause 10, which will confer the power for the commission to disqualify on a case-by-case basis; suffice it to say that it is one of the most important powers in the Bill. That clause is relevant to this amendment so it may help the Committee if I give a short overview of it now before going on to consider the noble Baroness’s amendment.

Most unfit individuals will be caught by the existing—and, under the Bill, extended—automatic disqualification criteria, but the Charity Commission needs a power to act in cases where individuals are not excluded by automatic disqualification. The whole point of this power is to give the commission the ability to disqualify an individual whose conduct clearly makes them unfit to be a charity trustee, where, if the commission were not to act, there would be a real risk, or at least a reputational risk, to charities.

We carefully considered the report of the Joint Committee on the draft protection of charities Bill, and made improvements to this provision as a result. More detail about the operation of the provision has been included in the Bill, and it is now a three-limbed test: first, one of the conditions A to F must be satisfied; secondly, the commission must consider that the person’s conduct makes them unfit to be a charity trustee, and draft guidance has been published on that; and, thirdly, the commission must consider that exercising the power is in the public interest, to protect public trust and confidence in charities. While the power may be relatively broad, its use would be targeted. The commission has said that it expects to use this power on a relatively low number of occasions each year.

The commission already has the power to act, and has done so, in cases where there has been a collective failure of trustees in relation to systemic governance issues. The powers to remove trustees in Sections 79 and 80 of the Charities Act 2011 do not explicitly or implicitly contain any restriction on removing trustees where that leaves one or none in place. Neither does the proposed disqualification power in Clause 10. There is, therefore, no reason why the commission would not remove all trustees on the ground of ensuring the safety and protection of children, where this was appropriate, proportionate and in accordance with best regulatory principles.

In circumstances where there is an impact on the beneficiaries of the charity, the commission has tended to appoint an interim manager, under Section 76 of the Charities Act 2011, to ensure the continued operation of the charity and to get it back on track before new trustees can be appointed and take over. However, there has been a case—and I will not name the particular charity concerned—where the commission has removed all 10 trustees on the board for collective governance failings.

The noble Baroness, Lady Barker, made a point about trustees having joint liability. The Charity Commission is required to act proportionately and so, in most cases, would target regulatory action on those most culpable or responsible for misconduct or mismanagement.

The noble Baroness’s amendment deals specifically with collective trustee failure relating to safeguarding. We would not want to cast any doubt on the commission’s existing liability to take action relating to collective trustee failures, or limit that by making specific provision. On the basis that the commission can, and does, already act to address collective trustee failures where it is proportionate to do so, I hope the noble Baroness will feel able to withdraw her amendment.

[Baroness Hayter of Kentish Town]

I thank the Minister, particularly on that second point. The reassurance that action for collective failure can be taken answers the point we were seeking to make.

On reporting, I have greater concerns. In answer to the noble and learned Lord, Lord Scott, we know of schools where abuse that was taking place was not being reported. Clearly, the recommendations and guidelines for reporting are not being followed. This is the problem. You have an educational establishment where abuse is going on and it is not being reported. It is that failure to report which gives rise to concern.

The noble Lord, Lord Hodgson said that we expect trustees to behave responsibly. Of course—but this issue is where they do not. I have now heard the phrase “red tape” used twice and I jib slightly every time I hear “red tape bandwagon”. It is not red tape. We are talking about protecting vulnerable people.

--- Later in debate ---

[Lord Bridges of Headley]

I want to make this one point to the noble Baroness. I asked the commission what its communication to the sector would be when the relevant changes on automatic disqualification come in. I completely agree that we need to ensure that not only are these new measures properly communicated, but we take the opportunity to remind all charities of their existing responsibilities, not just on this, but on other issues, although I would suggest especially on this. I will not bore the Committee with the six bullet points that I have been given about e-newsletters, press releases et cetera, but I can assure the noble Baroness that I have asked the Charity Commission to do this. It has given me its assurances, which I am happy to pass on.

[Baroness Hayter of Kentish Town]

That is helpful. Having been reassured about the ability to take action where there is a collective failure, we probably will not pursue that. We may, however, want to come back on the bar on reporting.

Charities (Protection and Social Investment) Bill [HL]

Debate between Lord Bridges of Headley and Baroness Hayter of Kentish Town

Wednesday 10th June 2015 Lords Chamber

[Lord Bridges of Headley]

I am brought up short. The noble and learned Lord is quite right: Mo Farah would be much better. Thanks to the noble and learned Lord’s hard work, and the work of so many others in this Chamber, I am pleased but not entirely surprised that rather than wheeling out the wrecking ball for this Bill, your Lordships have simply started to stick little pins into it before the House, to test, to probe and to clarify a little bit more. I very much welcome this, my first experience of legislative acupuncture, an experience I am told will leave me feeling invigorated, refreshed and revitalised.

Turning to address the points made, I hope to cover as many as I can, starting with some of the more detailed comments. The noble and learned Lord, Lord Hope, asked whether we could amend Clause 8 to make it clear that there are other circumstances in which a third party may be unable to comply with the Charity Commission direction. I am sympathetic to this point as we want the provisions to work effectively. We will need to look at this in some more detail before Committee, as we will other words such as “privy”, which I think the noble and learned Lord also mentioned.

My noble friend Lord Lindsay referred to the complementary role that standards and accreditation could play alongside the new powers proposed in the Bill in addressing governance and trustee issues. I agree and I welcome the work being done by the United Kingdom Accreditation Service and the NCVO to explore the potential that standards and accreditation have to offer in the charity sector.

My noble friend Lord Hodgson made a number of incisive points, as one would expect. He asked for the tribunal appeal rights to be consolidated and simplified. While recognising his point, it is important to note that not all Charity Commission decisions are subject to appeal and the existing table of appeal rights provides a useful checklist of what decisions can be appealed and who can appeal them. The Charity Tribunal itself has, I am told, not expressed concerns about it in practice. My noble friend Lord Hodgson also asked for time to implement the Law Commission’s recommendations. I am sorry to say that I cannot give any guarantees, but my noble friend knows that the Government will look favourably on deregulatory and simplification measures.

A number of comments were made about the social investment aspects of the Bill, and I am very encouraged and heartened by the interest that your Lordships paid to this. The noble Viscount, Lord Chandos, for example, made a number of perceptive points about social investment, as did the noble Baroness, Lady Kramer. I would very much like to meet with both of them to pick their brains, as they clearly have a lot of experience in this sector. I know that the noble Viscount sits on a number of foundations, and it is quite clear from the noble Baroness’s very eloquent speech that she, too, has a lot to offer.

My noble friend Lord Borwick made some very interesting points on the definition of social investment, including a slightly detailed point on mixed-motive investment. I will not detain the House on that point now but I would be delighted to discuss it with him, as I would with my noble friend Lord Bridgeman. As regards the naming of charities, a point which my noble friend Lord Borwick brought up, I simply point out that it is an offence to call yourself a charity if you are not; and as regards charitable income, charities must now declare income from central and local government in their accounts.

I turn to my noble friend Lord Moynihan’s remarks about independent schools, and pay tribute to the extensive and fantastic work that he has done in this area and on sports in general. He made some interesting points about the public benefit test. I would like to make it clear that charities already have to report on their public benefit in their trustees’ annual report. However, I would be happy to meet my noble friend before Committee to discuss the points that he has raised. Likewise, I would like to discuss the public benefit issue with the noble Baroness, Lady Brinton, who also brought this up in a number of ways.

Perhaps I may turn to some of the substantive points in the Bill itself. Clause 3, as noble Lords will remember, will enable the Charity Commission to take account of other relevant evidence of a person’s conduct in the context of a statutory inquiry into a charity. I think that the noble Baroness, Lady Barker, and the noble Lord, Lord Low, raised concerns about this. I would simply point to several safeguards on this point, and I shall do so quickly. First, there must be a statutory inquiry open and the Charity Commission must be satisfied that there is misconduct or mismanagement linked to the individual in that charity before it can rely on conduct from outside the charity in its decision-making. Secondly, when exercising its powers the commission must provide a statement of reasons which sets out the evidence it relied on in making the decision. This would include any evidence it relied on from outside the charity. Finally, there is a right of appeal to the Charity Tribunal in relation to the exercise of the commission’s compliance and remedial powers, ensuring judicial oversight of the exercise of the power.

The noble Baroness, Lady Barker, and the noble Lord, Lord Low, also referred to Clause 7, which contains a power to direct a charity to be wound up. As your Lordships will know, the commission’s usual practice is to restore a charity to health following an inquiry. However, in some very rare cases—and I stress they are rare—it would be more appropriate for any remaining assets to be transferred to another charity. The commission can already do that under existing powers, but now the commission will have the power needed for the shell to be wound up. This power is available only in the context of a statutory inquiry where there is misconduct or mismanagement, or risk to charity property. In addition, the commission must be satisfied that the charity does not operate, or that its purpose could be more effectively promoted if it were to cease to operate, and that the exercise of this power is expedient in the public interest. There is also a requirement for the commission to publish details of a proposed winding-up order and invite representations. A winding-up order can be appealed to the tribunal. So, there are a number of safeguards around that clause too.

Two points were made on Clause 9, which concerns the automatic disqualification powers that the Charity Commission is to be given. The noble Baronesses, Lady Hayter and Lady Barker, and the noble Lord, Lord Low, among others, raised this point. I am sure that we will discuss this further in Committee. As regards their wish for sex offences to be added to the list, I would simply say that there is an existing regime to ensure the suitability of anyone in a charity with unsupervised access to children and vulnerable adults. Whether they are a trustee, an employee or anyone else, they must all have had a Disclosure and Barring Service check. It would be impractical for the Bill to break down the charities type by type and prescriptively list criteria for automatic disqualification in each case. Charities should be trusted to make their own decisions on how suitable a potential trustee is when recruiting. Where charities fail to take their safeguarding responsibilities seriously, the Charity Commission can and does intervene to take regulatory action.

[Baroness Hayter of Kentish Town (Lab)]

Does the Minister accept that that occurs only after someone has been abused?

[Lord Bridges of Headley]

I would point out, if I may finish my point, that under the Bill the commission would also be able to rely on the disqualification power if a person’s conduct clearly made them unfit to serve as a trustee or senior manager of a particular charity or class of charities. The commission’s draft guidance on how it would exercise the disqualification power makes clear that it could be used in the circumstances. This is made clear on page 4, under paragraph (b)(i) concerning condition F. I know that we will probably return to this point in Committee, so I hope the noble Baroness will forgive me for going on right now.

Also as regards Clause 9, the noble Baronesses, Lady Barker and Lady Brinton, and the noble and learned Lord, Lord Hope, were among a number of your Lordships who raised the issues that counterterrorism legislation might have in this context. I have been fortunate enough to talk to a number of your Lordships about this point and I recognise that there is a concern for some charities operating in some of the most difficult parts of the world—not just the Middle East, as the noble Baroness, Lady Brinton, pointed out. However, I would point out that several government departments, including the Home Office, the Treasury and DfID as well as the Charity Commission and the Cabinet Office, are engaging with NGOs to understand their concerns and ensure that, wherever possible, they are given proper guidance.

In many cases there is already detailed guidance dealing with the points that were raised, and it may be a case where better signposting is needed. We are also not aware of any legitimate NGO worker who has been convicted in the UK under the counterterrorism legislation. Providing some sort of exemption for charities from aspects of counterterrorism legislation may sound attractive, but I would argue that it could create a loophole in the law that could be exploited by the unscrupulous—something which I am sure we would all want to avoid. I was particularly struck by the remarks made on this point by the noble Lord, Lord Green of Deddington, given his extensive experience in this area, and I thank him for his contribution.

The noble Lord, Lord Low, raised Clause 10, particularly as regards whether condition F in the proposed new section is too broad. This condition needs to be considered in the context of other criteria for the exercise of the disqualification power, namely the test of fitness that disqualification,

“is desirable in the public interest … to protect public trust and confidence in charities”,

and the safeguards relating to the operation of the power, including the right of appeal to the Charity Tribunal. The Charity Commission’s draft guidance on how it would exercise the power should provide reassurance that it will use the power only when there is a clear case for doing so; that the commission would clearly explain what it would take into account before using the power; and that in exercising the power, the commission would provide an explanation identifying the conduct in question and why it thought that the conduct met condition F.

I turn to some of the wider issues that have been raised. The noble Baroness, Lady Hayter, and a number of other noble Lords raised the tragic case of Olive Cooke. This was a very sad case and I start by paying my condolences to the family of Olive Cooke and pay tribute to her outstanding work in the field of charity, which the noble Baroness, Lady Corston, referred to. I would like to say here that the charity sector needs to move quickly and firmly to show that self-regulation works in the best interests of the public and that fundraising can set itself sufficiently high standards to meet public expectations.

Last week, my honourable friend the Minister for Civil Society met with three chief executives of the self-regulatory bodies. He made it clear that action must be taken quickly to protect the long-term reputation of charities. The self-regulation bodies agreed to pull together a plan of action that could be taken in the short term, together with plans to work on in the longer term. The FRSB published its interim report yesterday, and its findings and recommendations are being discussed at the Institute of Fundraising’s standards committee today—a point, I think, that the noble Lord, Lord Watson of Invergowrie, was referring to. Charities need to ask for funds, but that is not an inalienable right and it needs to be exercised responsibly, particularly if we are to protect public trust and confidence in charities for the long term.

A number of your Lordships raised the issue of charity campaigning, including the noble Baronesses, Lady Hayter and Lady Pitkeathley, and the noble Lord, Lord Watson. The Government have been consistently clear that charities have the right to campaign within the law and that this can be a valuable way in which charities can further their charitable purposes. The Charity Commission’s guidance, CC9, makes it clear that charity law recognises that campaigning can be a legitimate activity for charities and sets out the general principles. The Charity Commission keeps all its guidance under review to ensure that it remains relevant and up to date. The commission has monitored charities’ observance of the guidance during the election campaign and is considering the findings from that monitoring along with the impact of the lobbying Act and other issues relating to the current guidance. The Charity Commission will need to take account of any findings of the statutory review of Part 2 of the transparency of lobbying Act by my noble friend Lord Hodgson of Astley Abbots. If the commission considers revisions should be made to CC9, it has committed to say so publicly and to consult widely.

I turn to housing associations, right to buy and their charitable assets. The noble Baroness, Lady Hayter, raised the Government’s policy to extend right to buy. This, of course, is being taken forward in another Bill. The Government are determined that anyone who works hard and wants to get on the property ladder should have the chance to do so. There is indeed, as the noble Baroness knows, a precedent for housing association tenants accessing discounts to enable them to buy their own home. I believe many people exercised the right to buy their housing association home between 1997 and 2010.

Finally, a number of your Lordships raised the resources and role of the Charity Commission, including the noble Lords, Lord Low and Lord Watson of Invergowrie. I would make two points. First, on its resources, if we are to bring down the deficit, we need to make savings and efficiencies right across government, and that includes the Charity Commission. The Treasury has agreed a sensible settlement for 2015-16 with the Charity Commission, based on its forecast needs and focused on protecting its investigation and enforcement functions. The 2015-16 settlement also increased the Charity Commission’s capital budget by £500,000 to invest in a new digital online system for charities to file their annual accounts. This will improve the Charity Commission’s efficiency and help it to identify and tackle fraud and mismanagement. I also welcome the £8 million investment in the Charity Commission announced last October by my right honourable friend the Prime Minister. All this will help the Charity Commission refocus its regulatory activity on proactive monitoring and enforcement in the highest risk areas, such as the abuse of charities for terrorist and other criminal purposes, such as tax avoidance and fraud. Secondly, as regards supporting charities, I am confident that the Charity Commission will get the balance right between regulator and adviser, and I was heartened to read what the National Audit Office said in its interim report.

I look forward to debating and discussing these measures, and more, in more detail with your Lordships in the weeks ahead. As I said, my door is always open. That said, I would be grateful if your Lordships do not follow the example set by my formidable great-aunt, who was general secretary of the Women’s Institute during the Second World War. I am told that when she ran into some bureaucratic obstacle, she found that the best way of overcoming it was to harry Ministers by ringing them at home well before breakfast. That is something that I recommend your Lordships do not follow, as you may get my four year-old daughter, who is twice as formidable as her great-great-aunt.

This Bill is just one part of the Government’s programme to strengthen the fabric of our nation—one nation. In myriad ways, in every community across the land, charities are performing that vital role. Some are tiny, others enormous—together they are a golden thread, weaving together those who want to do their bit. The Bill will give the Charity Commission strengthened powers to tackle abuse so as to maintain the public’s trust in charities, and it will enable those who have to do still more to help those who have not. I thank your Lordships for all your contributions today and for the many months spent scrutinising the Bill’s proposals. I ask the House to give the Bill a Second Reading.