Public Contracts: Conflicts of Interest
Lord Wallace of Saltaire Excerpts(8 years ago)
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Baroness Chisholm of Owlpen
As long as the Ministerial Code is closely adhered to, along with the regulations, everything should be in order as far as appointments are concerned.
Lord Wallace of Saltaire (LD)
My Lords, does the Minister recognise that the distrust of public service that public interest economics has left many Conservatives feeling has led to an overdependence on outside consultants and interlocking bodies, to which successive Governments have paid a great deal of money over the last few years? The worry that this Question reflects is exactly about the extent to which overdependence on outside consultants, who have their own self-interests to protect and defend, needs much greater examination than it currently gets.
Baroness Chisholm of Owlpen
Again, with the regulations and the code of practice this should work well and all the boxes are ticked. We want to make sure that this Government are successful in public procurement and to that end the best way is to make sure that companies adhere to the regulations and the code of practice so that they can move forward. We must make sure that we are helping industries in this country get involved in public procurement.
Party Funding Reform
Lord Wallace of Saltaire Excerpts(8 years ago)
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Lord Wallace of Saltaire
To ask Her Majesty’s Government what plans they have for further reform to party funding.
Lord Wallace of Saltaire (LD)
My Lords, party funding reform is rather like Lords reform: we come back to it every other year, or at least once every Parliament; we possibly get round to setting up a working group; the parties fail to agree; we go away and significant change is rarely made. I note that the last debate on the matter in this House came after the breakdown of cross-party talks in late 2013, and I wound up on behalf of the Government after the coalition parties had failed to come to an agreement between themselves.
The reasons for returning to the subject are very clear. The first is the funding of the referendum campaign, which had a number of troubling aspects. According to the report last month from Transparency International, more than half the total funding to both sides in the referendum campaign came from 10 sources, both individuals and corporations. Indeed, 95% of the funding came from as few as 100 donors. That is not exactly popular sovereignty or popular participation among the masses.
The absence of limits to cap individual donations is clearly becoming an acute problem in our democracy, and there have been other recent developments in the funding of politics. In the 2015 election, Conservative spending was far higher than that of any other party, and some of it was on the outside edge of current rules, as we can see from the number of Electoral Commission investigations at this time. The current situation builds in a structural advantage for the Conservative Party in access to finance and pushes other parties into chasing major donors, wherever they can find them, in order to compete. There has been a substantial increase in income from large donors. When writing about the resignation of the noble Lord, Lord Feldman, from the chairmanship of the Conservative Party, the Financial Times estimated that the Conservatives had raised £250 million under his chairmanship.
Then there is the question of more professional techniques—what the Russians call political technologies —which also cost a good deal more money: for example, computerised analyses using sophisticated search engines that allow personalised messages to be sent to assorted individual voters from central party organisations, and focus groups to refine messages. These techniques also mean that, within the parties, there is a shift in the balance of influence from local parties to the centre, which I think has caused a certain amount of discontent over the past few years in the Conservative Party, as well as in others. The competition among parties in this way means that there is a harder drive for funds. There has also been a rise in corporate donations to political parties, which the Transparency International report estimates as £125 million over the past decade.
We have also had the Trade Union Bill of 2015, on which a Lords committee reported in March. We still await the Government response to that, and perhaps the noble Baroness will be able to tell us something about that as she winds up the debate. I intend to leave further comment on that to my noble friend Lord Tyler, who was a member of the committee.
The continuing globalisation of wealth and the rise of the super-rich, living largely offshore, means there is concern in Britain and other countries about foreign donors and foreign donations—that is, from wealthy foreigners within the UK and from the British abroad, not on UK electoral register, who have been living in tax havens for a very long time. There is particular concern about the super-rich living in London from autocratic states such as Russia and the Gulf monarchies.
There are also concerns related to this House: honours for donors, from all parties. This is a recurring theme. Most famously, my father once met my party leader of many years ago, Lloyd George, so I can “almost” say that Lloyd George knew my father—there were several thousand other people in the room at the time, but never mind. More recently, I recall the investigations of 2006 and 2007. The Transparency International report identified that 28 Peers created over the past 10 years were created primarily for their donations to particular political parties—I stress that that relates not just to one party.
The popular and press assumption is that donations buy influence. They certainly buy access. The Conservative offer of special access for large donors in the Conservative Leaders Group, to which one pays apparently a £50,000 entry fee, is estimated to have brought in £5 million from 100 donors since January 2013. The attractions of this access are strongest when a party is in government, and build in a structural advantage for a party in government. Mr Cameron’s resignation Honours List has increased concern still further, but I stress again that all parties take part in this competition, partly because they have to.
Recent proposals from the Government to cut support for opposition parties by imposing cuts in Short Money and Cranborne Money have also raised issues about funding for democratic activities. There was a clear perception that the Conservatives were trying to bias the political rules in their favour, including those for party funding, which feeds into popular cynicism about politics. Then this August, we had a letter from the Chairman of the Committee on Standards in Public Life, to which I hope the noble Lord, Lord Bew, will refer in his speech.
We have seen the developments in the United States, where the extraordinary influence of the very rich on politics is becoming even greater, where congressional politics is distorted by the continual search for campaign funding, and where Donald Trump has funded a great deal of his own political rise. That does not yet happen in our politics, although in Richmond Park we have someone who has very substantially funded his own political rise. We have seen the aggressive political campaigning that the use of major funds allows in the United States, and we have seen the politics of fear in similar campaigns in this country. All this drives popular mistrust of politics as such as a plaything of the rich, as inherently corrupt and as excluding the voices of ordinary people. A Transparency International survey suggests that 76% of respondents think that rich people have undue influence on politics, and 28% think that all politicians are corrupt.
That raises some major issues. The funding of the Vote Leave campaign and the role of Arron Banks and the company he founded, Better for the Country Ltd—which appears not only to have given £2 million to Grassroots Out, but to have lent £6 million at a nil rate of interest to the Vote Leave campaign in three separate transactions—raise large questions about getting around current rules about party funding.
All parties pledged further reform in their 2015 manifestos and all have particular preferences to defend. We need to reopen cross-party talks and recognise that we need a serious intent to achieve at least some limited reforms to restore public confidence in participatory politics. We all know what happens if people do not feel they have a chance to engage in parliamentary politics—politics moves on to the streets. We have seen that once or twice in the last 15 years and it could easily happen again if there is a strong sense that politics in Britain has become dominated by money, and in particular money to the advantage of a particular party.
Francis Bacon said at the beginning of one of his best essays,
“Money is like Muck, not good except it be spread”.
That is a good democratic principle. We could agree that limits on corporate donations and trade union donations should have to be considered together. We could agree a cap on donations to start at £50,000 or even £100,000, and then gradually reduce it. We should at least consider making individual donations up to a certain level open to gift aid, comparable to charitable donations contributing to public life. We need to strengthen the policing role of the Electoral Commission in local as well as central spending, and in campaigning innovations. We need to police donations from outside the UK more carefully, and possibly from ex-pats—no representation without taxation. Our overall aim must be to reduce the impact of money on politics, to widen the pool of donors, and to encourage ordinary citizens to contribute and feel that they are making their own contribution to democratic life.
Constitutional Convention Bill [HL]
Lord Wallace of Saltaire Excerpts(8 years, 11 months ago)
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Lord Wallace of Saltaire (LD)
My Lords, it is very good to hear the noble Lord, Lord Grocott, reassert yet again how deeply conservative—I hesitate to use the word “reactionary”—he is on all matters constitutional. I had expected him to object to “reform” rather than “electoral system”.
Clearly, I appreciate that a Labour Party which pursued in this recent election a campaign based on the idea that it could win a majority with 35% of the vote and was then defeated by a Conservative Party which won a majority of the House of Commons on 37% of the vote should want to have a vested interest in our current electoral system. If we are talking about constitutional reform overall, we need to talk about the balance in different parts of the United Kingdom. Perhaps one might then talk about, as he says, the range of different electoral systems that we now have.
During the AV referendum a very effective no campaign was led by Matthew Elliott, who is now leading the campaign to leave the European Union—with good right-wing credentials and a lot of right-wing funding. I am sure the noble Lord, Lord Grocott, is happy about that. But if we are going to talk about the rapidly changing and moving relationship between the different parts of the United Kingdom—for example, what is happening in local government in England concerns many of us on these Benches and is another dimension of this—we need to look at the overall pattern. That clearly would need to include some question of which electoral systems are appropriate for which levels of elections. That is the only point that I am making.
Lord Grocott
I am very sorry that the noble Lord no longer speaks in an official capacity on the Liberal Front Bench. I do not know whether he has been demoted or has voluntarily moved to the Back Benches or is moonlighting; I am not quite sure what the position is. It is a novel concept from the Lib Dems—I can understand in the light of the recent general election why they may need the odd novel concept—to say that for them it is a reactionary position to respect the views of the British people as expressed in a referendum. I regard that as a very progressive position. Although I do not mind in the slightest being accused of being a reactionary on the constitution from time to time, it might be at least reassuring if we heard occasionally from the Liberal Democrat Benches, whether officially or unofficially, that they do respect the wishes of two-thirds of the British people in a nationwide referendum.
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.
Lord Wallace of Saltaire
My Lords, I would just reflect on how solid is our base and how flexible is our constitution. From what I have been reading and hearing about the Magna Carta this year, I understand that two clauses of it are still in force and 75 are no longer in force. If one reads the Bill of Rights carefully, there is a very substantial anti-Catholic element, some of which is actually still in force, but has been weakened. The things that we refer back to as the foundations of our constitution are in many ways deeply inappropriate and we get by by ignoring them.
Lord Bridges of Headley
I heed what the noble Lord so rightly draws out. My point would be that these are the foundation stones on parts of which we have been building over the centuries.
House of Commons: Ministers
Lord Wallace of Saltaire Excerpts(8 years, 12 months ago)
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Lord Wallace of Saltaire
To ask Her Majesty’s Government what plans they have to reduce the number of Ministers in the House of Commons proportionately to the intended reduction in the overall number of members in order to avoid any increase in executive influence over the elected House.
The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)
My Lords, we have acknowledged the link between the size of the House of Commons and the size of the Executive, both in this House and in the other place, and we will continue to keep the number of Ministers under review as the consequences of the forthcoming boundary reforms are delivered and begin to take effect.
Lord Wallace of Saltaire (LD)
My Lords, does the Minister agree that there is no other first Chamber in a democratic Parliament in the western world which has as high a proportion of people caught up in government as in our House of Commons? Would he also agree that that is part of the cause of tension between the two Houses, and the Commons as a result does not do its work of scrutinising and holding the Government to account as vigorously as a democratic Parliament ought to do and that, as we reduce the number of MPs, it is vital that we reduce the number of Ministers in the Commons as well?
Electoral Registration and Administration Act 2013 (Transitional Provisions) Order 2015
Lord Wallace of Saltaire Excerpts(9 years ago)
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Lord Wallace of Saltaire (LD)
The noble Lord has quoted the Electoral Commission several times. As a matter of process, the opinion of the Electoral Commission is extremely important. As a member of the coalition Government, my clear understanding was that we had agreed that we would complete the process by December 2016 unless there was—as the Electoral Commission has confirmed there is—compelling evidence that it was not necessary to go that far. The Electoral Commission has said, very clearly, that it thinks we are mistaken in what we are doing. Is the Minister saying that the Government consider the commission not to be relevant in this crucial area, although he is using it to support his argument in other areas? Why do the Government not regard the Electoral Commission’s argument? I repeat that this is a matter of the rules of politics, which have to be seen as fair.
Lord Bridges of Headley
I completely agree with the noble Lord that the rules of politics must be seen to be fair, which is why we are taking this action today. We believe that it is wrong to have so many inaccurate ghost entries on this register and that the facts have changed, in that by December these four out of 100 voters will have been contacted at least nine times. I will go on.
Lord Bridges of Headley
No—I am absolutely clear. We need to make sure that we take every step possible to cut down on electoral fraud. Therefore, after such an effort to contact the ghost entries, which puts pestering PPI calls in the shade, and given these facts, the Government believe that the time has come to remove these entries from the register.
I will repeat a crucial point which I made at the start. Even if someone is removed inadvertently from the register, he or she has not lost the right to vote, as some would have it. Indeed, as I have said before, we want more people to register. A number of noble Lords, such as the noble Lord, Lord Rennard, have highlighted the number of those who are not on the register already. I agree—they are right—there are too many of them, and we need to encourage them to register, as I said at the start. Individual electoral registration will help them do that. It is now easier to register than ever before and takes minutes to do online: 460,000 applications were made on the registration deadline for the general election alone—that is five applications a second.
As the Minister for Constitutional Reform said in his speech last week, the approach to registration needs to be updated and modernised, building on the success of online registration. This will help to meet the challenges of finding and registering those currently missing from the register and build on the excellent work that was done under the coalition.
The key point is this: the need to encourage voter registration has nothing to do with removing the inaccurate carry-forward entries on the register. As I just said, if a person is not on the register already, they obviously cannot be affected when these ghost entries are removed from the register. As I said at the start, the answer to underregistered groups, such as young people or expatriates, is not to stuff the electoral roll, and potentially the ballot boxes, with the names of people who do not exist but, instead, to encourage more people to vote.
A number of your Lordships referred to the boundary review, which, as your Lordships will know, begins its work early in the new year, fulfilling the Conservative Party’s manifesto commitment to cut the number of MPs and make votes of more equal value. If we are to create constituencies of equal size, the electoral registers used for the boundary review must be accurate across the UK. Otherwise, areas with large numbers of carry-forwards will get more MPs than those with small numbers.
This should not be a partisan point, despite what the noble Lord, Lord Tyler, said. Areas with high carry-forwards include Conservative authorities such as Windsor and Maidenhead, and Kensington and Chelsea. It is right that overregistration be tackled in these areas. Equally, Labour councils such as Barrow, Cardiff and Hartlepool have below average numbers of carry-forwards. Surely it cannot be right that we leave 17,000 carry-forwards on the register in Kensington and Chelsea, according to May’s figures, while there are just 558 in Hartlepool. If we allow this to happen, it will distort the distribution of seats, hitting, in particular, Wales and Northern Ireland, where there are no carry-forwards as they already have individual electoral registration. A full transition to the new system will ensure fairness—something we all should want.
As we enter a year of elections, the Government believe that we should not retain these ghost entries on the register, making it inaccurate and perhaps making elections open to fraud. As has been said, we are not alone in thinking this. As my noble friends Lord Lexden and Lord Hayward said, the Association of Electoral Administrators supports ending the transition this year for primarily this reason, saying that:
“It is crucial to have the most accurate register possible”.
All democracies depend on a weighing up of interests and a careful consideration of the facts. This is no less true of our electoral system. As the noble Lord, Lord Alton, said, we must take an approach that strikes the right balance between safeguarding the integrity of the register and ensuring that the electors registered to vote for the elections next May are accurate. The Government believe that we are past the tipping point. Remember, 96 out of every 100 electors have successfully registered on the new system. By December, at least nine attempts will have been made to contact those entries that were carried forward. The chance of a large number of the remaining carry-forward entries being eligible to register to vote is vanishingly small. No one is losing the right to vote and registering is easier than ever before. This is why the Government oppose the Motions today.
Although I heed the words of the noble Lord, Lord Alton, I would like to echo the words of my noble friend Lord Cormack. Having broken a convention yesterday by failing to respect the primacy of the other place, the House supporting these Motions would defeat a statutory instrument, not on the grounds that it has been improperly made but because the noble Lords who tabled them disagree with it. It is up to your Lordships to make your decision clear, but it would be killing a statutory instrument—something this House has done only five times since World War II. With a further fatal Motion on the Order Paper for later today, the House is being invited to withhold its approval to three statutory instruments in two days; doing in two days what this House did in the 13 years between 1997 and 2010.
Lord Wallace of Saltaire
The House will be doing so partly because the Electoral Commission has advised us to do so. That is the question the noble Lord has not answered.
Lord Bridges of Headley
As the noble Lord, Lord Empey, said, the Electoral Commission is an independent body but we are not bound to observe it. As I have set out very, very clearly, we believe that we have a strong case for proceeding as we have.
Although this House is unelected, I believe that we should be doing our utmost to protect the integrity and accuracy of our electoral system. That is the duty we have to voters. We believe that it is time to finish the transition to individual electoral registration in December 2015 so that we can all be confident in our electoral register.
Government Digital Service
Lord Wallace of Saltaire Excerpts(9 years, 1 month ago)
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Lord Wallace of Saltaire
To ask Her Majesty’s Government what changes in the Government Digital Service will follow from projected cuts in its budget and the departure of senior staff.
The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)
My Lords, the future budget for the Government Digital Service will be determined in the spending review. The Government are 100% committed to the digital strategy set out in the previous Parliament and to the vision of government as a platform, so we can solve digital challenges once on behalf of all government. We will continue to strengthen the team in GDS and capability across government so as to transform the public delivery of services, making life easier for the citizen and cheaper for the taxpayer.
Lord Wallace of Saltaire (LD)
My Lords, does the Minister accept that this was a Conservative initiative—from the noble Lord, Lord Maude—in the last coalition Government, which had active Liberal Democrat support and much wider support from those in the technological community outside, and that it has been so successful that, as the Financial Times reports today, the United States, Australia, New Zealand and Israel have modelled their approaches to digitisation on the British scheme? Now, since the chief executive has resigned, six senior executives have left the GDS in the last six weeks and there are increasingly worrying reports of what is going on. Can we have at least a Statement and preferably even a White Paper on the future of GOV.UK, or are we going back to piecemeal approaches by departments which were demonstrated to be so ineffective in the past?
Lord Bridges of Headley
First, I thank the noble Lord for what he did when he was in government in supporting the GDS. I can say that we are utterly committed and remain committed to the strategy that was set out in the last Parliament. Plans will be announced before Christmas that will set out our strategy. The plans to create government as a platform continue, and the noble Lord is absolutely right—from my own experience in the private sector it is right that the entire organisation continues to embrace digital technology and build government as a platform.
Charities (Protection and Social Investment) Bill [HL]
Lord Wallace of Saltaire Excerpts(9 years, 2 months ago)
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Baroness Hayter of Kentish Town (Lab)
My Lords, we come to the Third Reading of the charities Bill. I will also speak effectively to Amendment 2, which is clearly related to Amendment 1. Amendment 1 stands in my name and that of my noble friend Lord Watson, and it deals with an issue which is as yet unresolved—namely, the appropriate way of regulating fundraising by charities from individual donors.
By way of background, although chugging and cold calling have long been issues of frequent complaint, it was the very sad case of the death of Olive Cooke, herself a lifelong donor and a volunteer poppy seller, which brought to light the unacceptable behaviour of a number of the big fundraising charities and the inadequacy of the current scheme of self-regulation. Although it was we who first raised the issue here, since then there has been widespread acceptance by the Government, the charities and even the so-called regulatory bodies—the code-setting institute and the Fundraising Standards Board—as well as by the Commons Public Administration and Constitutional Affairs Committee, which is carrying out its own inquiry, that the self-regulatory system failed. It failed to maintain appropriate standards, it let down donors and let down the wider public—which brings us to today.
When similar, indeed identical, amendments were tabled on Report, following discussion in Committee, the Government accepted the need for change and tabled amendments of their own. However, at that time, they were not fully convinced of our two proposals—first, that membership of the current voluntary membership body, the FRSB, and adherence to the appropriate code should be mandatory; and, secondly, that the Charity Commission’s reserve powers on fundraising should be activated.
However, given that the Government accepted that we had not reached a final position on this and that further amendments might be required, the Government asked Sir Stuart Etherington, chief executive of the NCVO, to chair a group, which includes the noble Lord, Lord Wallace of Saltaire. I believe that Salts Mills in Saltaire was the venue for some of the wonderful photography in the BBC’s “An Inspector Calls”, broadcast last night. The committee also comprises the noble Lord, Lord Leigh of Hurley, and my noble friend Lady Pitkeathley, and was set up to consider whether further change might be needed and to report back to the Government. Regrettably, we find ourselves in the slightly odd position of having Third Reading this afternoon, just days before that committee is to report. This is, therefore, very much work in progress, and we will be sending the Bill to the other place a bit unfinished.
I know that the Minister is not behind this timetabling. I think, like me, that he would like to have this issue properly debated and decided upon here, because I know that he is genuine in wanting a robust system in place. If I was suspicious—and I never am—I would think that the Government were wanting to seize the initiative themselves, make a good announcement from the platform at the Tory party conference and take the credit. If so, I will cheer them on, given that we are not seeking change in order to get the credit but to make sure that we have the right solution.
However, it is clear that we do not yet know the best way forward, although I think that everyone accepts, including the big charities and the new chair of the Fundraising Standards Board, who appeared before Bernard Jenkin’s committee, that membership of the board must become compulsory and that the board, which should be independent of the charities it regulates, must in some way have more power than naming and shaming, which is open to it now. There is also general agreement that the weak and unsatisfactory fundraisers’ code must be beefed up. Furthermore, it seems obvious that such powers are bound to entail some role for the Charity Commission, either via a portal, whereby the standards board can report misbehaviour to the commission for subsequent investigation and statutory action, or via such a board being commissioned, licensed or authorised by the Charity Commission, such that there is a degree of statutory oversight to ensure independence and the board would have to satisfy the commission that the code and its procedures were robust and fit for purpose, and will work independently of its regulated community.
There is no doubt that the key players accept the thrust of this, although we regret that some of the charities and perhaps the Institute of Fundraising itself have not quite accepted the independence that a new system requires. Their letter to the Sunday Times was outwith any discussion with the Charity Commission or ourselves, which suggests that they want to hold on to a self-regulatory model, which has failed the public.
We are not wedded to any particular model, provided that it is independent and effective in order to enable complaints to be heard, and drives up standards. We are clear that such changes need to happen. We are happy to await the recommendation of the Etherington committee, albeit we wish that the timetable was different. The amendment therefore is to make it clear that the Bill as its stands, and as it will go to the Commons, is not yet adequate. The amendment is to allow the House also to hear from the Government how far their thinking has progressed over the summer. I beg to move.
Lord Wallace of Saltaire (LD)
My Lords, I should admit that I spent the weekend in Yorkshire, where, to my surprise, my neighbours do not hate people outside Yorkshire and nor do they in fact hate each other. We had a very pleasant weekend. I should also admit that, some months ago, I enjoyed watching the filming of that part of “An Inspector Calls” in our very beautiful village.
We are concerned here with the future of charities. I have found it very constructive to be involved in the thorough Committee and Report stages that we have had on this important Bill. I think we all recognise that as government spending shrinks in the next three or four years, charities will have to play a more important part in looking after a range of good causes and disadvantaged people across our country. That means that the importance we attach to the regulation of charities—the subject of this amendment—is something that requires continuing attention. It also requires active support for philanthropy, and I trust that the Government will pay active attention to encouraging visible philanthropy. I was glad to see the Financial Times highlighting this last week.
Having been involved in the committee to which the noble Baroness referred, which will present its report to the Government shortly, I am slightly more sceptical about standards across the whole universe of charities than I was before. Clearly, there is need for tighter and more visible regulation. A number of charitable trustees have not understood how active and responsible their role should be, and these matters need to be addressed.
There is a continuing role for this House in providing oversight to the charitable sector. Perhaps we should consider, in future years, whether a sessional committee of this House might look at some aspects of the charitable sector. As we saw in Committee and on Report, there is some very valuable expertise in this House.
I think that all of us here accept that charities are not comparable to commercial enterprises, as I and others have heard it suggested on one or two occasions. Charities have a privileged status both in legal and taxation terms. The standards of behaviour that we rightly expect of them reflect that privileged status. These high standards should apply to the whole diverse field of charities: to the development charities, as well as to private schools; to libertarian think tanks, as well as to medical charities. We are entitled to expect that their trustees enforce that.
As a backstop, we need to consider what level of regulation is enforced and implemented and how that regulation is organised. We will indeed be reporting on that. I have some sympathy with the noble Baroness when she says that the role of the Charity Commission also needs to be re-examined as a backstop to whatever formal regulation the sector itself provides.
Having said that, I trust that when our report is presented there will be an opportunity to debate it, and certainly, when the Bill comes back from the Commons, there will be another opportunity to make sure that we have moved matters forward. I merely emphasise again that the charity sector is extremely important to our society and to aspects of our economy. It deserves, therefore, to be fully regulated and as transparent as possible.
Lord Leigh of Hurley (Con)
My Lords, I declare my interests in charities as listed in the register of interests. I was going to declare my interest in the fundraising regulation review panel, but I am grateful to the noble Baroness, Lady Hayter, for doing it for me.
As she says, we are not yet in a position to present our report. On 10 July, Minister Rob Wilson rang me to ask us to start this report. That was an interesting call because, on 9 July, the Prime Minister had thanked me for accepting. But it shows that it is being taken seriously at a very high level. We will have an appropriate moment to thank Sir Stuart Etherington and Elizabeth Chamberlain of NCVO and Susann Hering from the Cabinet Office for the report, which we hope will be published extremely soon. If it is to be published at the Conservative Party conference—I do not think that is the plan—I will personally welcome the noble Baroness, Lady Hayter, and invite her to sit with me and listen to every word. I hope there will be opportunity for further debate in this House when amendments come back here.
Charities (Protection and Social Investment) Bill [HL]
Lord Wallace of Saltaire Excerpts(9 years, 4 months ago)
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“Independent schools’ facilities: public benefit
In section 4 of the Charities Act 2011 (the public benefit requirement), after subsection (4) insert—“(5) Independent schools which are charities must engage actively with local communities and state schools with a view to sharing resources and facilities.
(6) The Charity Commission must publish guidance setting out the minimum that independent schools which are charities must do to comply with the duty in subsection (5).””
Lord Wallace of Saltaire (LD)
My Lords, we return to a simplified version of amendments which the noble Lord, Lord Moynihan, and I moved in Committee. Between the two stages there have been a number of discussions with the Minister, for which I thank him, and with the Independent Schools Council along with others. I must apologise to some of those with whom I was attempting to negotiate for much of Thursday and Friday morning, in that I happened to choose one of the few places in Oxfordshire where you cannot get mobile phone reception.
The context is clear: the rise in quality in resources and facilities at most—though of course not all—independent schools, which arises from their ability to raise fees and fundraise, along with endowments that many of them have, is in contrast with the decline in the resources and facilities of state schools, including their playing fields, music and drama facilities and specialised coaching and teaching of specialised subjects, which is unlikely to be reversed under this Government, since they are committed to shrinking government spending further, including on education. The second part of the context is the charitable purposes of independent schools, which are often rooted in their founding purposes in education for local communities. I am well aware that the Charity Tribunal in 2011 said that purposes can change, and indeed have changed—although they have not entirely been discarded. We discussed this earlier, with the question of housing associations. A housing association that changes itself into something entirely different would have its charitable status questioned. I remind noble Lords that the ruling of the Charity Commission says that schools can choose how they demonstrate public benefit, not that they can disregard public benefit.
The third part of the context is the increased awareness within the educational world of the importance of resilience and self-confidence as wider elements in education, although, unfortunately—and the Independent Schools Council made this point to me—Ofsted no longer pays any attention in assessing state schools to the wider elements of education that encourage resilience and self-confidence. There is a consensus on how important these things are to individual development. Best practice in the independent schools sector recognises this, and there are a number of excellent examples of partnership between independent schools and the local communities—and their schools—in which they are embedded. There are some examples of less good practice, however, which is why the amendment talks about engaging “actively”. One of the weakest points, in the statement agreed between the Independent Schools Council and the Charity Commission, is to say that there will be a new website through which state schools will have a facility to request involvement in partnership activities. We want independent schools to go out to find, explore, pursue and develop partnerships with their local communities and state schools.
The strongest point of the ISC and Charity Commission is the commitment to a research report, 12 months from the introduction of these changes, which will review data from the annual reports of charitable schools as well as the aggregated data that the ISC collects through its census. At present, the details of how that research project is developed will be agreed between the Charity Commission and the ISC.
We are all conscious of the problems of defining public benefit. The NCVO advice on this amendment repeats that too strict a definition of public benefit gets one into enormous problems—and I am looking at the noble Lord, Lord Hodgson, who has said this to me, and many others, many times. But the Charity Commission must monitor that public benefit of some sort is provided. If the Minister is to say that the Charity Commission is not capable of doing that at present, many of us would say that the Charity Commission have been severely constrained in recent years. Faced with a Government who are cutting public expenditure, this very important third sector may need more effective regulation as we have to depend on it more and more.
We hope that we can avoid going down the road to a further statutory definition of public benefit. What the noble Lord, Lord Moynihan, and I wanted to achieve through this process was a strong nudge to the independent schools sector to move in the right direction. It will help us not to divide in this House if the Minister can give us a number of strong reassurances—first, to make it clear to independent schools that they are expected to pursue and develop partnerships, not just to wait and see whether anyone applies. They should see this as part of the social responsibility that all charities should shoulder. Secondly, we should engage with the ISC and the Charity Commission on the terms of the research project to be conducted over the next 12 months and not leave the definition entirely to them. Thirdly, it is important to report to Parliament on the outcome of this research and arrange for it to be debated either through an Oral Statement or otherwise in government time.
I hope that that gives the Minister sufficient space to take us forward, not necessarily to any form of mandatory obligation but certainly to say that we have moved independent schools towards the active partnership with their local communities and schools that we all want.
Lord Moynihan (Con)
My Lords, I shall speak to the amendment on the important question of the relationship between independent schools’ charitable status and public benefit and the need for all schools, particularly those with charitable status, to work together with state schools and neighbourhood communities in their vicinity. I intend to concentrate my remarks on the dual use of sports facilities and coaching expertise, although the principles behind my support for progress towards closer educational partnerships extend to all the charitable objectives set out by Parliament in the Charities Act.
In moving a probing amendment in Committee, my intention was to consider the merits and disadvantages in moving from the flexibility of the current system to a more prescriptive approach, reflected in the amendment that we are considering today, which requires all independent schools to engage with local communities, particularly regarding the dual use of sports and arts facilities. A considerable benefit of Committee for me was the opportunity that it provided to delve deeper into proposed legislation and learn significant lessons from the in-depth experience found in this House and outside.
Following Committee, like the noble Lord, Lord Wallace, I have taken the opportunity to meet the Charity Commission, the Independent Schools Council and the Minister to consider how we can make further progress to promote engagement with all independent schools in receipt of charitable status that have the facilities and coaching expertise to engage with local communities and state schools to mutual advantage. I am particularly grateful to my noble friend the Minister, who has upheld his open-door policy to any Member of your Lordships’ House on this Bill.
I spoke in Committee about good practice and cited Tonbridge School as a leading case study of good practice in this country. Under the leadership of Tim Haynes, the head, the school has engaged with 27 primary schools in its vicinity. The reaction from children, parents and the local community can best be described as fulsome praise. His initiative has gone further than engagement through sport, with the subjects of music, drama, dance, chess, art, design, IT, creative writing, science, history, maths, modern languages and classical studies all featuring as part of that engagement. Above all, all independent schools, such as Tonbridge School, in showcasing their facilities, should look to work also with governing bodies of sport, local clubs and those responsible in the primary schools for the school sport premium. That comes with £8,000 for schools with 17 or more pupils, plus an additional £5 per pupil, which could be very useful to fund insurance, transport and related costs incurred as a result of these initiatives.
To be successful, this must be a two-way process. Over the past few days, the Charity Commission has confirmed that it will relaunch and publicise the examples for schools of how to provide benefit for people who cannot afford their fees in its existing guidance, Public Benefit: Running a Charity, by sharing sports facilities. In a significant step forward, it will give new examples relating to sharing sports facilities, arts and music in the guidance Public Benefit: Reporting and in the example trustees’ annual report for “Anytown School”. A significant improvement in good practice should be achieved.
The problem I have with mandatory requirements is the one-size-fits-all approach. For example, many prep schools have to work to capacity to survive financially, even with charitable status. Some do not own their own sports facilities, others share and some are in need of significant upgrading. What is needed is for each school not only to follow best practice but, as the noble Lord, Lord Wallace, stated, for the Charity Commission to publicise it through its channels so that each school can tailor its public benefit accordingly and the House can debate the outcome.
The Charity Commission responded positively to the suggestion of a research report, in which I have more faith than the noble Lord, Lord Wallace. According to its guidelines, that report has to be published 12 months from the introduction of these changes. That research should provide us with a comprehensive picture of the extent of partnerships and enable this House to consider whether legislative steps are necessary, for example, when the next education Bill comes before us during this Parliament.
While there are challenges for independent schools with charitable status, the broader question we should also be debating applies not only to all independent schools but to the state sector, whether well-endowed with sports facilities or not. One of the greatest challenges we face in designing a long overdue and effective sports policy is the oft-quoted statistic about the percentage of our Olympic medallists from the independent sector. That reflects the need to do all we can, far more than at the moment, to identify talented youngsters in all our schools and provide ladders of opportunity for them to climb from primary school to podium.
In response to pressure from all sides of the House on this Bill, the Independent Schools Council has agreed to act by building a new website, Schools Together. The site is currently under development and should be ready to receive information from schools in the autumn term. It was not even on the agenda before Committee. I hope the site will be launched as soon as possible in the autumn. It must be two-way. The site absolutely needs to summarise what is on offer at all independent schools with charitable status and to include a facility for state schools to get involved in partnership activities. From the conversations I have had, I believe that independent schools will reach out to their community in this way by providing information and contact details of their partnership co-ordinators. State schools will be asked to request involvement in partnership activities. Since this is clearly the intent of all who have contributed to this debate at various stages, there should be no reason why all schools do not engage constructively. Once again, if the combined new commitments of the Charity Commission and the Independent Schools Council do not bear fruit in the way the House and the Minister have indicated, we should be able to produce legislative change through a wider education Bill.
I believe that these initiatives represent more than a nudge in the right direction. They are very significant steps forward and would not have happened had there not been the level of interest expressed in your Lordships’ House from all parties. They are tailor-made for the differences between schools and they avoid the cost and administration that a one-size-fits-all legislative approach would deliver. I believe that what I have sought to address constitutes a very strong example of how cross-party support for the interests of sport and recreation, including the arts and curricular subjects, for all children coupled with the promulgation of best practice can be and has been achieved. That is a rare outcome of negotiation between Committee and Report. I fully appreciate the strength of opinion expressed and I share it, but I believe that the changes we have been offered are far reaching and deserve support. I also believe they are for real. There is genuine consensus on this issue among all interested parties. I believe the approach offered will prove to all concerned that the proposed package will achieve even more with the good will of all involved than a one-size-fits-all amendment would deliver. For these reasons, I hope the amendment will not be pressed to a vote and that we can build on these important initiatives and regularly hold all those involved to account when it comes to the outcome of the research project and the website in a year’s time.
Lord Wallace of Saltaire
My Lords, this has been an important debate and a number of noble Lords, as well as the Minister, have said important things about what we need. I recognise that a number of noble Lords on the Conservative Benches have close links with the independent schools community. I trust that everything that has been said will be taken back and pursued further. I particularly welcome the point made by the noble Lord, Lord Moynihan, that we expect a positive response to all that has been said. If necessary when the research report comes out, if good progress and significant movement has not been achieved, we will clearly have to move further again.
We all recognise that charitable status is a privilege and that public benefit has to be part of the response to that privilege. We all also recognise that public benefit is very difficult to define and that there are many other areas, including religious groups, where public benefit can sometimes be extremely contentious. That is an issue to which we may well return during the course of this Parliament.
The research project is key, and I welcome the Minister’s response that we will be able to debate that report when it returns and see how thorough it has been and what it shows. On that basis, I am willing to withdraw my amendment. I am a liberal, not a socialist: I prefer co-operation and partnership to compulsion and the imposition of penalties. I would not vote for Jeremy Corbyn as my party leader. I want to see a strong and diverse charitable sector, including many schools founded as charities serving different purposes. However, it is also clear that schools that have been founded as charities have to pursue charitable purposes and demonstrate public benefit. That is what we have been calling for. On that basis, and on the basis that this discussion will continue with many of us on all sides of the House actively engaged, I am willing to withdraw the amendment.
Security: State Procession
Lord Wallace of Saltaire Excerpts(9 years, 4 months ago)
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Lord Wallace of Saltaire
To ask Her Majesty’s Government what assessment they have made of the potential security risks posed by converting former government buildings into privately owned hotels along the State Procession route between Buckingham Palace and the Palace of Westminster, including along Whitehall.
The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)
My Lords, the former government buildings to be converted into hotels along the state procession route are Admiralty Arch and the Old War Office. The freeholds remain under government ownership in perpetuity and continued oversight and security measures will be implemented as part of the commercial arrangements with the private sector. Long-term protocols and operating procedures are agreed and built into both schemes. The security and intelligence services and the Metropolitan Police are closely involved in this process.
Lord Wallace of Saltaire (LD)
My Lords, does the noble Lord recall that when President Bush made a state visit to London, the entire Whitehall area was cordoned off, including to Members of Parliament? Does he also recall that the IRA, from within the area of Whitehall, managed to mortar No. 10? Further, he will remember that the bombing of the Brighton hotel, which affected Mrs Thatcher and others, was placed in the hotel some time in advance of the incident? Do the security services intend to vet positively all the staff of these hotels; has that been agreed? Will the hotels be closed to all visitors during state visits or will the visitors be vetted as well?
Lord Bridges of Headley
The noble Lord has raised interesting questions based on his own experience. I have looked into the clauses of the leases for both the Old War Office and Admiralty Arch and I am satisfied that they allow for appropriate access for both security and ceremonial purposes. The hotels will employ their own staff, and while the Government have not insisted on security clearances for each member of staff, it is obviously in the hoteliers’ interests to take their security checks on their staff into consideration. Furthermore, I should point out that both the Metropolitan Police and the security services are very involved, as always, in ceremonial processions and major events, and will continue to be so to make sure that security is upheld.
Voting: UK Overseas Citizens
Lord Wallace of Saltaire Excerpts(9 years, 4 months ago)
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Lord Bridges of Headley
My Lords, I believe that this is a matter that your Lordships and many others have discussed many times and will continue to do so, but, as I have said, we have set out our view on the European referendum. It will be based on the parliamentary franchise. However, I am sure that we will continue to have the debate that my noble friend wishes to have.
Lord Wallace of Saltaire (LD)
My Lords, do we have any idea how many British citizens there are overseas and how many of them are dual citizens of the United Kingdom and other countries? When I was in government I tried to find out figures on this and got estimates that varied between about 4.5 million and 6 million. Could the Government possibly aid us all by trying to get some accurate estimates, including of where they live and how many of them are dual citizens?
Lord Bridges of Headley
My Lords, I hardly dare say that my efforts will be greater than those of the noble Lord. What I will say, reading from my brief, which I am sure the noble Lord remembers, is that there are 5.2 million British-born migrants living overseas. I do not have a breakdown but I will certainly ask. I would stress that more than 105,000 British citizens resident overseas were registered to vote in the election—more than three times the previous highest number.