Charities (Protection and Social Investment) Bill [ Lords ] (Fifth sitting)

Alan Mak Excerpts

Thursday 7th January 2016 Public Bill Committees

[Mr Wilson]

Look, there are at least three separate investigations into what happened at Kids Company, two of which are due to report by the end of this month, I think. It is important that we all wait to see what those reports say. If lessons can be learned, the Government will certainly learn them and do what we can to ensure that such things do not happen again, but to pre-empt that in this Committee would be wrong.

I was talking about the change in the nature of fundraising regulation if we had to invoke this power. It would no longer be governed by a self-regulatory system; instead, the Government would be able to invoke statutory regulation by mandating the Charity Commission with that task. Were that function to be passed to the commission, clearly it would require additional funding or would charge fees under section 19 of the Charities Act 2011.

I hope that I will never feel compelled to use this power, as it would mean that the self-regulatory system had failed. More importantly, it would mean that large charities had failed to put their house in order. However, the seriousness of the abuse in the past year or so and the impact it has had on public trust in charities has made it clear that a robust backstop is needed to ensure that the public feel that they can give with confidence and to prevent the same sorts of scandals being repeated.

[Mr Alan Mak (Havant) (Con)]

One area of charitable practice that helped to undermine confidence in the sector is the behaviour of so-called chuggers—charity collectors who collect direct debits on behalf of charities. Can the Minister assure the Committee that the new regulatory system will clamp down on such bad practices and increase confidence in the sector by way of regulation?

[Mr Wilson]

I thank my hon. Friend for raising an issue of great public interest. Many people have raised such concerns in recent years. Personally, I am not convinced that that method of fundraising is beneficial to the sector’s reputation. Many people dislike being approached in the street or on their doorstep. On the other hand, I appreciate that it represents an important source of income for the sector, and it would be churlish not to acknowledge that there have been some improvement in the regulation of face-to-face fundraising—it is known as that, rather than chugging—in recent years. It was highlighted as a problem as far back as 2012 by Lord Hodgson’s report. However, I expect that the new fundraising regulator will pay very close attention to chugging. Charities and the new regulator need to ensure that it is done respectfully and responsibly, and that the methods used to solicit donations are not the next big scandal waiting to happen.

Let me return to section 64C, if that is not too geeky for the Committee, which sends a clear signal about the Government’s intention for better regulation of fundraising in the future in one way or another. The charity sector feels compelled to ensure that that is achieved through the Etherington system, rather than statutory regulation. I think that everybody here wants fundraising to be better regulated in future to ensure that it protects the vulnerable, is not governed by vested interests and does not allow free riders to abuse the system. The new clause provides a robust back-up to the system of self-regulation currently being implemented. It will also act as a deterrent to those who are still in denial about the seriousness of the issues that the sector faces.

In some ways, it is odd that I hope that I and my successors will never have to invoke the reserve powers to regulate fundraising. Ultimately, whether or not that happens is in the hands of the charities themselves, which need to ensure that the self-regulation of fundraising works in the public interest. I hope hon. Members will agree with me and back this important new clause, which will help safeguard the future of fundraising and the reputation of charities in the long term.

--- Later in debate ---

[Anna Turley]

I am going to make some progress, if I may—I apologise to the hon. Gentleman.

The new clause seeks to prevent what the shadow Minister for the Cabinet Office, my hon. Friend the Member for West Bromwich East (Mr Watson), described last month as

“a fundamentally illiberal Government that railroads proposals through Parliament without debate and seeks to limit scrutiny whenever and wherever possible”.

It is the same mind-set that regards

“the FOI Act…as an irritant and the Human Rights Act…as nothing but an inconvenience”

and that goes in for

“squeezing the finances of the political parties who oppose you becomes not just acceptable but desirable.”

The lobbying Act was a part of that fundamentally illiberal approach and an attempt to gag charities. It came from the same fear of public scrutiny and accountability. The new clause seeks to protect that important freedom.

In 2010, the coalition agreement promised that the Government would

“throw open the doors of public bodies, to enable the public to hold politicians and public bodies to account.”

How much, it seems, has changed, yet the Government still seek to ensure that charities are accountable—and rightly so. From today’s papers we can see that they are considering extending the Freedom of Information Act to charities that deliver public services. I would be happy to extend the Bill process if the Government wish to table further amendments to that end, so that we may have that discussion. Transparency, accountability and freedom to challenge must work both ways.

[Mr Mak]

The hon. Member for Hove talked about the public’s expectations when they engage with or contribute to charities. Surely the public’s expectation is that charities will focus on their community work and their help for vulnerable groups, rather than on party politicking. The new clause would blur the clear line that we have now.

[Anna Turley]

This is not about party politicking. Is the hon. Gentleman seriously suggesting that an organisation such as Shelter should simply stick to providing advice to Members and not seek to challenge the Government and politicians of all sides, holding them to account? That is what we are seeking to protect.

The Commission on Civil Society and Democratic Engagement also found that voluntary groups embroiled in Government contracts regularly face threats to remain silent on key Government policies. Many neglect to speak out on issues plaguing society for fear of losing funding or inviting other unwelcome sanctions. The health of our democracy depends on people’s right to campaign on the issues they care about. The lobbying Act was an attack on our democracy. It hits charities and campaigners and limits their right to fight for important causes while allowing professional lobbies to escape scrutiny. It has left expert organisations that have a vital contribution to make to public debate unsure whether they are allowed to speak out. Governments should not be afraid of criticism or lively debate. As the old saying goes, politics is too important to leave to politicians. We seek to protect this right of charities to have a loud and respected voice in our democracy. I commend the new clause to the Committee.