Economic Activity of Public Bodies (Overseas Matters) Bill Debate

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Department: Cabinet Office
Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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I agree with the noble Baroness; that is an entirely fair point. We agree that the Bill is complex when it comes to understanding. I want to make sure that, when I answer questions on things such as public functions, I am giving good information that is thought through and thoughtful. I have tried to explain today why we are using the Human Rights Act. That has advantages, which is why the Government have gone down that road.

I should respond to the point about cultural institutions that the noble Lord, Lord Wallace, raised. Some of them are in scope of the Bill in their public functions only, and I set out earlier a number of factors that courts would consider in deciding whether an act was a public act. The noble Lord also pointed out that the Bill contains the power to exclude bodies in its scope from the ban via regulations. The Government do not currently foresee the need to exclude such bodies, but this power will allow the Bill to evolve in line with government policy.

For all these reasons, I have tried to explain why we have presented the Bill in the way that we have. There is a lot of comfort to be taken from using the Human Rights Act, but I look forward to returning to some of the questions that have been asked. In the meantime, I ask noble Lords not to press their amendments.

Baroness Blackstone Portrait Baroness Blackstone (Lab)
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If I may intervene, this definition debate is like walking through a giant sticky pudding. Most Members of the Committee are utterly confused about exactly what public bodies and public authorities are, and about which institutions will be in the scope of the Bill and which will not.

I shall raise a specific example. Could the Minister tell the House about housing associations? They undertake many public functions, which is another term that the Minister introduced but has not been properly defined. They deliver social housing, for example. They do so in partnership with local authorities, often managing the social housing that is owned by local authorities. Will they be in scope of the Bill or not?

Baroness Neville-Rolfe Portrait Baroness Neville-Rolfe (Con)
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The answer I must give in the short term is that it depends a lot on the courts. I will look at housing associations; I know they have come up in other Bills that we have discussed, including how they are treated in government finance. The point about using the Human Rights Act definition is that you get a 25-year history of interpretation.

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Baroness Noakes Portrait Baroness Noakes (Con)
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My Lords, on the previous group of amendments I explained that I was concerned about the lack of certainty involved in the definitions. However, I feel the debate on this group has engineered more uncertainty than in fact exists.

My noble friend the Minister explained that the Government used the Human Rights Act definition because there is 25 years of jurisprudence, and the noble Lord, Lord Stevens, helpfully suggested that the Government update their understanding of what that definition means. I believe that most of the bodies know whether or not they are subject to the public sector duty involved in the Human Rights Act—not all of them, and there are certainly issues at the margin, but we need to get this in proportion. For example, I suspect that most of the bodies that the right reverend Prelate referred to already know whether or not they are subject to the human rights duty in Section 6 of the Human Rights Act. So although I continue to believe that clarity is important and that we need to find ways of achieving that clarity, we should not overstate the difficulties of establishing who is within the terms of the Bill and who is not.

Baroness Blackstone Portrait Baroness Blackstone (Lab)
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My Lords, could the Minister comment on the actual functions of some of these so-called public bodies? I assume that secondary schools will be regarded as public bodies. They have a wide range of functions focusing on educating the children who are pupils there, but they are also responsible for the development and improvement of their school buildings. Let us take the example of a school that has an extremely rich alumnus who wishes to reward it for the excellent job it did in educating him, and allocates to it a very large sum of money to put up a completely new building: will that be caught by the Bill’s scope, so that the school has to decide whether it will be found to be breaking the law because it takes into account moral and ethical considerations in its purchase of goods for providing a very large new school building? These are the sorts of questions that people will face, and I am not sure that the governors of most state secondary schools will be terribly familiar with Section 6 of the Human Rights Act; nor will they find it that easy to get advice about it. Perhaps the Minister could comment on that sort of situation.

Lord Stevens of Birmingham Portrait Lord Stevens of Birmingham (CB)
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I take the point that the noble Baroness, Lady Blackstone, just made in respect of schools, but I also agree with the point the noble Baroness, Lady Noakes, made about the jurisprudence that has arisen, which has clarified this for a number of institutions, including, I think the right reverend Prelate the Bishop of Manchester will find, the Church of England. In fact, I believe the first case to test whether a body in the Church was indeed a public authority was Aston Cantlow Parochial Church Council, which was trying to exact a chancel repair charge. In the Appellate Committee of the House of Lords at the time, the noble and learned Lord, Lord Hope, deemed that the parochial council was not a public authority. Many details have been laid out by the courts quite clearly over the years, but if the Government could adduce that on to a single sheet of paper in the way that has been described, it would be very helpful.