Academies Bill [HL]

Debate between Lord Phillips of Sudbury and Baroness Thornton

Monday 28th June 2010 Lords Chamber

[Baroness Thornton]

My Lords, I know that the noble Lord, Lord Phillips, will probably have something to say on this. The noble Lord, Lord Hodgson of Astley Abbotts and I had several happy hours in the Chamber discussing community interest companies and how they should be formed. The noble Lord is correct—it was a matter of some significant discussion at the time that a community interest company could not be a charity. However, a main feature of a community interest company is the asset lock. That is why it is such a valuable company form for social enterprises. I am not sure how that could be applied as an alternative form to a charity. This is a complex issue, and I am sure that the noble Lord, Lord Phillips of Sudbury, is about to make it even more complicated, because I know that he has very firm views on this, but I cannot see how the asset lock would work here.

[Lord Phillips of Sudbury]

I do not like being known as a man who complicates things, but I shall just say that I, unusually, do not support the noble Lord in his amendment. The fact that a CIC cannot be a charity is a fundamental impediment. It would also mean that it could not have a principal regulator under the Charities Acts 1993 and 2006, which would be a really major drawback. However, the noble Lord has at least drawn the attention of the House, inadvertently perhaps, to the charitable incorporated organisation, which is a new corporate animal created under the Charities Act 2006. The Charity Commission is still struggling to find the regulations appropriate to the birth of this new beast but, by jingo, when it is born, it will be a perfect vehicle for these new academies. As Clause 8 has been drafted by Monty Python, it will not be a permitted corporate carrier of a school, although plainly it should be. So I am grateful to the noble Lord for his amendment, even if I disagree with it.

Academies Bill [HL]

Debate between Lord Phillips of Sudbury and Baroness Thornton

Wednesday 23rd June 2010 Lords Chamber

[Lord Phillips of Sudbury]

Amendment 64 is in my name and that of my noble friend Lady Walmsley. With this amendment, I have had the temerity completely to redraft Clause 1(7) because, with the best will in the world, it is extraordinarily lumpy and unclear. However, I have made a wonderful boo-boo in the redraft, in that I have said that academy arrangements “may” prohibit, when of course it should be “must” prohibit, so I beg noble Lords’ indulgence and ask that “must” be read in place of “may”. However, my point is that in the existing subsection (7) the difference between attendance at a school and education provided at a school is wholly unclear to me. It says that,

“no charge is made in respect of … admission … attendance … or … education provided at the school”.

I suppose that this is really a probing amendment so that the Minister can tell the Committee what is missing from my comprehension.

[Baroness Thornton]

I promise that I shall say only a few words but I want to add to what my noble friend Lady Royall said in opening this debate. The very helpful Library notes that we received in the briefing pack repeat what is in the Explanatory Notes, so it is very important that this matter is clarified.