NHS (Charitable Trusts Etc) Bill

Debate between Kit Malthouse and Jacob Rees-Mogg

Friday 22nd January 2016 Commons Chamber

[Kit Malthouse]

Does my hon. Friend agree that my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) gave herself away at the beginning of her intervention when she referred to this money being donated by the public to the NHS? In the public’s mind, there is often a confusion between the charity and the institution that it serves, and it is therefore crucial to have these controls.

[Mr Rees-Mogg]

My hon. Friend puts it extremely well. That confusion is almost inevitable. In the case of charities linked to hospitals, most members of the public will expect the money that is spent charitably to be as thoroughly audited as the money that is spent by the state, and it is prudent to formalise that.

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[Mr Rees-Mogg]

I am not sure that those are the circumstances under which the Secretary of State would use his discretion to allow the logo to be used. I am thinking more of a sign outside a charity shop that supports the NHS, saying “We support the local NHS”, with the name of the local hospital that it is supporting and the local hospital’s logo, which includes the letters “NHS”. I am thinking of that sort of circumstance. It is not about promoting the charity as an offshoot of the NHS; it is about indicating its co-operation with the NHS.

Defibrillator boxes give the name of the ambulance service—the ambulance service’s logo includes the letters “NHS”—to indicate that people should ring 999. The ambulance service will then give them the code to open the box and talk them through how to use the equipment. Most of us probably would not know how to use it without some advice. It was entirely rational to use the logo until some idiotic bureaucracy got in the way. Initially, it was very stubborn—the worst type of pettifogging bureaucracy. If the Secretary of State had had the power to cut through such bureaucracy, that could just have been done.

The circumstances in which the discretion is used would be limited to where there was genuine co-operation—where the charitable sector and the NHS are working hand in glove—and there was a benefit from using it. It is not about charities posing as the NHS where they are not part of the NHS. If the Secretary of State thought the logo was being misused, he would have the power to rescind the permission. This protected and limited power would solve a particular problem.

[Kit Malthouse]

I rise to speak to amendments 1, 3 and 2, which—inexplicably, given their strength—stand in my name only, as well as the splendid amendment 9 and the unfortunate amendment 4. It is a pleasure to speak under your chairmanship, Madam Deputy Speaker. In my experience, debates with you in the Chair are often the most efficient and good natured. I hope that today’s debate will be just that.

On amendment 1, when one tables an amendment, it is a great pleasure to have one’s speech made for one much more eloquently than one could make it oneself, so I am grateful to my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) for his support. Recently, there have been significant charitable scandals in this country. Much of the time of the House and of the Public Accounts Committee has been taken up with Kids Company. I have become convinced that one of the phenomena at work in that organisation was group-think. Those hon. Members who are students of psychology will know of the phenomenon of group-think: individuals in a group, often when they are led by a charismatic leader, can get lost in a miasma of consensus, in which they are unwilling or unable to acknowledge any view that departs from theirs, and indeed are hostile to outside views of their conduct.

The most famous political example was the Bay of Pigs disaster: the group around President Kennedy became trapped in group-think. We have seen commercial examples of it in the UK. Marks & Spencer and British Airways got trapped in group-think in the 1980s, when they went for massive international expansion. They did so against the views of everybody on the outside, but both boards convinced themselves that it was the right thing to do. Disastrously, Kodak and Swissair, which was once talked of as the “flying bank”, went bust because the management were unwilling to look for outside views.

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[Kit Malthouse]

My hon. Friend makes a remarkably good point. For Members of this House, that is a very pertinent example of the damage that social media can wreak on our ancient institutions, such as the Labour party.

The truth is that the modern mind is much more susceptible to such things, and particularly to charismatic leaders. One only has to look at the effect of Instagram, and the millions of followers that otherwise unmeritorious individuals have on it, to see how willing people are to go along with such things these days, like sheep in a herd.

[Mr Rees-Mogg]

Will my hon. Friend give way?

[Kit Malthouse]

Yes. Sorry, I should have said “flock”, not “herd”.

[Mr Rees-Mogg]

That was exactly my point.

[Kit Malthouse]

I thought so. I am grateful to the hon. Member for pedantry, who is right.

This is one of the things about which I am concerned. We saw the notion of group-think in Kids Company. A group of trustees, led by a charismatic leader, felt themselves to be invulnerable. They thought that they should not be doubted, and they were hostile to external views expressing doubt about them. One only has to review the correspondence of Mr Yentob, with his wild claims about the death and insurrection on the streets that Kids Company’s demise would cause, to see that group-think in action.

I studied politics and economics at university, specialising in the psychology and behavioural side of politics, and we studied group-think quite closely. When future students come to study group-think, they will look at Kids Company as a perfect example of it. Those involved were trapped in group-think. If only somebody had been able to step in and take control earlier, the charity and the remnants of its good work could have been saved.

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[Kit Malthouse]

I acknowledge that point, but we have been round this carousel a couple of times. I pose just one question to those who are nervous about my amendments: in the event of something going wrong, who would fire and replace the trustees? No one. They become a self-governing group. One of the problems with charitable governance is that there are no shareholders to dispose of underperforming trustees. Charities have to acknowledge their own bad performance and fire themselves. In a situation where there is an inextricable link to a particular establishment, the Secretary of State needs to have the ability to step in, in extremis.

It is often forgotten that charities receive public money, and no charity is more likely to receive public money than an NHS hospital charity. Such charities are more likely to receive grants for their performance of services, projects, equipment and so on. We therefore have a particular interest in NHS charities.

[Mr Rees-Mogg]

I support my hon. Friend’s amendment because it is an emergency provision that would be rarely used. From the tone of the debate, there is an impression that the Secretary of State would use it the whole time. Does my hon. Friend agree that it would probably not be used more than once in 10 years?

[Kit Malthouse]

My hon. Friend is right. Proposed subsection (2B) in amendment 1 provides that the Secretary of State would be allowed to use the powers only by permission of the House. I am with my hon. Friend in his desire to protect the House’s privileges and powers. I did not get elected to give the Government a free run. When the good people of North West Hampshire elected me, they placed two votes: one for a Government and the other for somebody to hold them account. I will try to do that job. Should the Secretary of State wish to step in, he would have to lay a statutory instrument before both Houses of Parliament and seek their support. It could not be done easily, on a whim or through a signature on a piece of paper. It would require debate and examination, and need all of us to do our job of scrutiny and reach a settled decision to allow him to step in. I recognise that it is a fundamental step and that an element of separation should be maintained.

NHS (Charitable Trusts Etc.) Bill

Debate between Kit Malthouse and Jacob Rees-Mogg

Friday 6th November 2015 Commons Chamber

[Mr Rees-Mogg]

I was confusing my authors of children’s literature. I got “Winnie-the-Pooh” right; I was just attributing it to the wrong man. I am grateful to my hon. Friend for that correction. So I do not have an interest to declare. I must de-declare my interest in relation to the topic on which I was talking.

Leaving such a legacy is a wonderfully generous thing to do, along with the flexibility in allowing the copyright law to be adapted so that one play can provide resources for a hospital, where the two come together. We all know the story very well. The childhood story of Peter Pan, ever-youthful—Madam Deputy Speaker, as I look at you, I see the ever-youthful Deputy Speaker—is a great one to combine with a children’s hospital, which is there to care for children at their weakest time, not just those from London, but those from across the country, as we have heard.

[Kit Malthouse]

My hon. Friend makes an interesting point. I wonder whether he supports legislation that would automatically extend the copyright of written works when donated for charitable purposes. I referred earlier to various authors, particularly children’s authors, who may now consider with greater likelihood leaving their copyright to hospitals and the like after their deaths. If they knew that the copyright would be automatically extended for the charity’s benefit, it might encourage even more of them to do so. Does he agree?