Community Interest Company (Amendment) Regulations 2012

Lord Young of Norwood Green Excerpts

Wednesday 18th July 2012 Grand Committee

If ever I heard the long grass whispering, this was it. A bit of business case development 15 months in is not good enough. I am not asking my noble friend to take responsibility for this. I am saying that we really can do something to improve the way in which Companies House, the CIC regulator and—parenthetically, it is nothing to do with our discussion this afternoon—the Charity Commission work together to reduce the regulatory burden. As my noble friend has told us, there are 6,700 CICs, but there are more than 30,000 charitable companies. We are talking about being able to get rid of 30,000 to 50,000 forms if Companies House can be persuaded actually to walk the walk as opposed to talking the talk about minimising burdens when, in fact, it is doing no such thing. It is just reorganising the regulations—quite rightly, because I accept that it is closing a loophole—in a way that benefits them and has no benefit to the CICs whatsoever. I urge my noble friend, let us find a way to get Companies House to collaborate with the CIC regulator on the one hand, the Charity Commission on the other and, in so doing, take a small step in reducing regulatory burdens for this charitable and social enterprise sector.

[Lord Young of Norwood Green]

My Lords, I confess that I was in complete ignorance of community interest companies until I saw this, and I learnt quite a bit looking at it. They are one of our more interesting innovations, given that a significant number have been created and continue to be created. I have looked on the website at the latest grouping. I admit that until I listened to the noble Lord, Lord Hodgson, I saw this order as correcting an error.

I have some sympathy for the view of the noble Lord, Lord Hodgson, that we should try to make things as easy as we can. I was impressed when I read the impact assessment that all of them have submitted their reports. I hope that I have got that right. If only we could ensure that all companies managed to do that, it would be a major step forward. Nevertheless, I will be interested to hear the Minister’s response to the view of the noble Lord, Lord Hodgson. I have no further comments.

[Lord De Mauley]

My Lords, I thank my noble friend Lord Hodgson and the noble Lord, Lord Young, for their consideration of the draft regulations. To address my noble friend’s point about the claim in the documentation to reduce the regulatory burden, I can first establish that it is at least not increasing it, because all CICs were already filing. I think that the contention is that it is more straightforward to have one account filing date and one set of penalties, and also that e-enablement will allow easier submission. I throw myself on his mercy, but those are the suggestions that I put to him.

His greater point about the co-ordination between the registrar of companies and the Charity Commission —I think that was the nub of it—I will take back to the appropriate departments. I think that it will be more than one department, but it is a valid point.

Consistency is essential in the regulatory environment, where light-touch regulation means that there are limited measures to ensure that CICs are meeting the obligations laid out in the legislation. I commend these regulations.