European Union Referendum Bill

Lord Wigley Excerpts

Monday 23rd November 2015 Lords Chamber

[Lord Hamilton of Epsom]

My Lords, as far as I can see, the noble Baroness, Lady Morgan, has put her finger on a slight problem here. The Bill, as I understand it, allows some charities to become permitted participants and permissible donors. But at the same time, Charity Commission law basically says that charitable contributions should not be used for political purposes. I understand that Justice Hoffmann—now the noble and learned Lord, Lord Hoffmann—ruled in 1991 that:

“There is no doubt that campaigning, in the sense of seeking to influence public opinion on political matters, is not a charitable activity … it is not a proper object of the expenditure of charitable money”.

It seems that we have two conflicting judgments being made, one by the Bill and the other by charity law. It would be very helpful if my noble friend the Minister could cast a bit of light on this. Are we now saying that charities are to be allowed to involve themselves in campaigning, against the judgment of Justice Hoffmann? I am a little confused about where we stand on this.

[Lord Wigley (PC)]

My Lords, I am glad to have the opportunity to welcome the amendment put forward by the noble Baroness, Lady Morgan, because it touches on an area that could cause considerable confusion and difficulties to charities. I am involved with a number of them and have known some of the problems that have arisen in the context of elections. It is quite clearly not a question of campaigning in a party-political sense but, equally, charities have a viewpoint on changes that can affect their fundamental raison d’être. They need to be able to put forward information for people to consider without being seen as campaigning. That dimension is complicated by the difference in the legislation that exists in different parts of these islands.

This is clearly a probing amendment and I very much hope that the Minister will at least be able to come back at Third Reading on this matter, if not tonight. Before I sit down, I thank her very much indeed for the way in which she and her colleagues have handled the Committee and Report stages of the Bill, and the outcomes we have had from it.

[Baroness Anelay of St Johns]

My Lords, I am grateful to the noble Baroness, Lady Morgan, for pointing out that this is a probing amendment. She was able to give us enough advance notice of this late-stage amendment to enable us, I hope, to gather together the reassurances that she and others rightly seek. Under charity law, political activity by charities is subject to strict rules. Charities are also subject to requirements of electoral law. My noble friend Lord Hamilton asked for some clarification on what appears to be obfuscation. That is what I hope to do at this stage, because he is right: it is important that the role of charities is clear and respected.

In England and Wales under charity law, a charity may engage in non-party political activity to support its charitable purpose where the trustees consider it to be an effective use of the charity’s resources. One is thereby pursuing the reason why the charity has been set up—what its mission is—but one is not permitted to take part in party-political activity. A charity must never support a political party or candidate, and must always take care to preserve its independence when engaging in any political activity.

Charity law is devolved in Scotland and Northern Ireland, but the rules are similar. There is already guidance for charities on referendums: for example, the Charity Commission for England and Wales published guidance in July 2014 entitled Charities, Elections and Referendums. The Office of the Scottish Charity Regulator published guidance last year ahead of the referendum on Scottish independence. The Charity Commission for Northern Ireland has produced general guidance for charities in Northern Ireland on political activity.

So we have had Charity Commission guidance in England and Wales, and the Scottish Charity Regulator and Northern Ireland Charity Commission have issued guidance. To complete the picture, the Charity Commission for England and Wales has already said that in principle it will be happy to work with the Electoral Commission, the Office of the Scottish Charity Regulator and the Charity Commission for Northern Ireland on this subject. However, it does not believe that there is a need for much additional material given the existing guidance for charities across the UK, some of which I have just referred to.

The Charity Commission for England and Wales and the Electoral Commission are meeting tomorrow to discuss the joint promotion and communication of their guidance in order to promote charities’ awareness and understanding of the rules that apply. I also understand that the UK charity regulators are due to meet later this week, providing a timely opportunity to discuss this issue and consider the potential for collaboration on such guidance. While the provisions of the Bill apply across the UK, we must recognise that charity law is devolved in Scotland and Northern Ireland. We must therefore also respect the independence of the different regulators and their entitlement to reach their own views in particular cases.

Given my explanation about the collaboration that is not just happening normally but is happening now, we do not believe that the amendment is necessary, given the willingness of the Electoral Commission and UK charity regulators to work collaboratively on this specific subject.

I do not think that the noble Baroness intended her amendment to be self-operative, because clearly it will create an unnecessary burden for the regulators, which she does not intend. She asked me to say whether the regulators have demonstrated a willingness to collaborate on guidelines. I say yes, and they are coming up with the evidence for that, as well.