Counter-Terrorism and Border Security Bill (Seventh sitting)

Neil Coyle Excerpts

Tuesday 10th July 2018 Public Bill Committees

[The Chair]

We should now come to new clause 1, tabled by Mr Doughty, but he is not here so we will skip over it and go straight to new clause 5.

New Clause 5

Fundraising for victims of terrorism: restrictions on profits

“(1) Organisations that provide services for the purposes of raising donations shall not be entitled to profit from those services where the conditions in subsection (2) are met.

(2) The conditions referred to in subsection (1) are that—

(a) the purpose of raising funds is wholly or substantially to support persons who have sustained a loss due to acts of terrorism; and

(b) the persons donating the funds are doing so without any expectation of personal benefit.

(3) In this section “profits” means any income derived from providing services for the purposes of raising donation in excess of the cost of providing those services.”

This new clause would mean that organisations such as online donation platforms would not be able to make a profit from supporting charitable fundraising for those affected by acts of terrorism.—(Neil Coyle.)

Brought up, and read the First time.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

I beg to move, That the clause be read a Second time.

It is a pleasure to serve under your chairmanship, Mrs Main. We got here slightly quicker than I expected.

The new clause would mean that organisations, including online donation platforms, would not be able to make a profit from helping to collect funds donated for the people affected after terror attacks. It is in effect a no-profiteering from terrorism clause. As Members might know, some online platforms are designed to help raise funds for good causes. The most famous of all is JustGiving. The Institute of Fundraising praises JustGiving and makes it clear that that site alone raises vital funds for a whole host of charitable causes. Millions of pounds are being generated that simply were not there before or were not as easily raised previously, and JustGiving deserves credit for its innovative approach and engaging systems. Its site is used by many individuals for single and small causes and collections.

My wife used JustGiving recently to raise money for St Christopher’s Hospice, who so carefully looked after her father when he passed away in 2016. I use JustGiving every year when I do a sponsored sleep-out for the Robes Project. We sleep outside Southwark cathedral on the last Friday in November. Members are welcome to sponsor or join me there. It is not every night that you get to sleep with the bishop. The project raises vital funds for homelessness and for shelter and accommodation across churches in Southwark and Lambeth, so please sponsor. If Members do not wish to sponsor me personally, in my constituency Sophie Willis is using JustGiving to raise funds for a range of rare conditions, including mast cell activation disorder and Ehlers-Danlos syndrome. They recently had an event that many Members might have attended here at Westminster.

I am not saying that people should not use JustGiving. Single issues and small fundraising schemes help to boost charity coffers considerably and that is to be welcomed. JustGiving describes itself as a “tech-for-good” company aimed at growing the giving community and it has a demonstrable experience of raising additional funding. As well as the ordinary campaigns that JustGiving helps to raise funds for, it also covers the extraordinary. It helps to collect donations after major events. Specifically, it is the huge campaigns born out of public generosity after catastrophic incidents, such as terrorism, that raise significant and legitimate concerns.

Many of those who use JustGiving do not know that it has a blanket policy of taking 5% of all funds raised. That is on top of administration fees and over and above the charges levied to charities to use its site, which can be as much as £39 per month. I understand from JustGiving that it has about 25,000 charities signed up. I simply do not believe that everyone using the site realises that their donations do not wholly go to good causes, nor do they know the margins involved. I think many would be disturbed to find out the truth that not all their contributions reach the target that they wish, and the sums provided by members of the public can be significant. The British public is a generous beast who donated millions after Grenfell and the Manchester Arena attack, for example. Members might have seen Matt Dathan’s coverage on this issue in The Sun, and I thank him and the paper for covering the topic.

The Sun revealed in June that JustGiving took more than £200,000 in what it calls “revenue” from Grenfell donations. Many people would find that distasteful, to say the least. My right hon. Friend the Member for Warley (John Spellar) raised that specific example and stated that JustGiving,

”should see sense and cough up”,

because of public concern. However, JustGiving has not listened and nor has it adapted its policy. Worse still, it applies the same 5% blanket take even after terror attacks. I find that unpalatable.

After the Manchester Arena bomb in May last year, JustGiving pages raised more than £5.5 million in donations from people wishing to help the families of the children killed and injured. That meant a profit of more than £277,000. Imagine the difference that that quarter of a million could have made to the lives of those affected. It was intended to help those traumatised, devastated and in shock. Instead it was taken from the pockets of the intended beneficiaries and trousered by JustGiving.

It is also estimated that, from public donations intended to help the people and firms affected by the terror attack at London Bridge and Borough market last June in my constituency, JustGiving took a profit of almost £70,000. Not all the public donations intended to help have gone on to reach the people affected, not because of the lack of will or interest of those making the donations, but because of JustGiving’s insensitive policy. Such a shocking system simply must be changed. When JustGiving transferred the public donations raised after the terror attack in my constituency last June, the amount provided to the Borough Market Trust was £95,000. JustGiving apparently then made a donation of its own. It gave £900 out of its £17,000 profits from public donations. Some have suggested that that was guilt money.

--- Later in debate ---

[Mr Wallace]

The hon. Member for Bermondsey and Old Southwark made, as with his other points, a passionate appeal to do something about this issue, as a direct result of working with his constituents in Borough market. Charities in this country do an incredible amount of work. I think the public gave more than £10.3 billion to charity in 2017. As a British citizen, I am incredibly proud that it is still in our nature to contribute to a range of charities. The establishment of the Charity Commission has played a hugely important role in supporting and helping to co-ordinate the work of fundraisers and charities in responding to such major incidents.

We should also reflect that it is not the incidents that define people’s hurt, need and suffering. The pain and goodwill of the husband, wife, brother or sister of someone desperately trying to raise money for an operation abroad, someone trying to raise money for the hospice where their father died, someone raising money to deal with someone injured in a car accident, or someone trying to campaign for change or for the NHS, for example, to produce some new treatment, are the same as those trying to support victims of terrorism. Someone who has lost their children at the hands of knife crime, not terrorism, will feel no different to, and no less a victim than, any other victims. I am not saying that the hon. Member for Bermondsey and Old Southwark suggested that.

There are emergencies all the time that result in a significant loss of life. Thankfully, they are not all caused by terrorism; in fact, they are very rarely caused by terrorism, and I would not seek to put a line on one versus another. I would not seek to say that one incident deserves a cap or a lesser fee than the other. We have to get to grips with the core of what needs to be put right.

[Neil Coyle]

It is different when there is an accidental need to raise, such as in the Minister’s example of a car accident, although I would hope that the NHS would cover that. Cancer was another example. Again, I would hope that NHS treatment and research would be done to try to prevent that from happening. In the context of the Bill, we are talking solely about terror attacks and those who deliberately sought to attack us, this country and our way of life. In response to that, I think a unique and different position should be adopted by the Government. Also, when we make donations we do not expect anyone to take a profit from those donations.

[Mr Wallace]

I hear what the hon. Gentleman says and I understand his dividing line of accidental or unavoidable, but many more people are killed in this country as a result of domestic abuse than terrorism. Many more people are killed because of knife crime or violent crime every year than terrorism. It is the same; no one went out to look for that. That is the position. We could probably debate all day where we would draw the line. That is one of the challenges we face.

The Government are committed to ensuring that victims of terrorism receive effective support that is comprehensive and co-ordinated. That is why last year we set up the cross-Government victims of terrorism unit to co-ordinate support to UK citizens directly affected by terrorist events at home and overseas. We continue to work across Government, including with the third sector and private sector organisations, to improve and strengthen the support available so that victims receive the best possible support now and in the future.

The Government’s approach to digital fundraising platforms is to promote self-regulation, with the aim of ensuring that transparency and the public interest are protected. The Fundraising Regulator, working with a number of digital fundraising platforms, has developed new transparency requirements, which it consulted on and announced just last month on 7 June. These changes were incorporated into the “Code of Fundraising Practice”, the rulebook for fundraising in the UK, and the platforms have until the end of August to make any necessary changes to their systems and processes. Most digital fundraising platforms have already registered with the Fundraising Regulator. Several platforms chose to waive or cap their fees in relation to some of the incidents last year, including the Manchester terror attack.

Alongside the updates to the “Code of Fundraising Practice”, the Fundraising Regulator has developed guidance for online fundraising platforms, to help them meet the expected standards of transparency. Guidance has also been produced to help members of the general public who want to use these platforms to ensure that they do not inadvertently breach the code and that they consider how funds will reach the intended beneficiaries.

We expect non-statutory regulation under the Fundraising Regulator to work, but as a backstop the Government have reserve powers to regulate fundraising under the Charities (Protection and Social Investment) Act 2016, should that prove necessary. We will not hesitate to do so, if that is the case.

These changes are already having an impact. One prominent for-profit funding platform has changed its practices; as well as being more transparent about its fees, it now offers donors the ability to make an additional payment to cover the fees, ensuring that the entire donation goes to the beneficiaries.

I have greater sympathy for a more directive approach when it comes to gift aid. Some digital fundraising providers include the gift aid amount when they calculate their charge. I think that is outrageous. Gift aid is taxpayers’ money that is given to charities; it is not meant for businesses that operate fundraising platforms. That is why my hon. Friend the Exchequer Secretary to the Treasury has asked Her Majesty’s Revenue and Customs to explore options to ensure that gift aid is passed on in full to the charities to which it is due.

Separate to the work of the Fundraising Regulator in improving transparency and the regulation of digital fundraising platforms, work is underway with the charity sector to better co-ordinate charities’ response to major emergencies. This programme is being supported by the Charity Commission, working closely with a range of charities, fundraisers and regulators, including the Fundraising Regulator.

In January this year the Charity Commission organised a roundtable event involving 25 charities, regulators, fundraising platforms and others, to start to develop a framework for a more co-ordinated charity sector response to national critical incidents. Attendees agreed to the principle of creating a collective framework for co-ordinating such responses. They formed a working group to develop the framework and operating principles behind any future disaster response. That work is progressing well and focuses on the themes of first response, fundraising, distribution of funds, and recovery.

I am sure that this is not the intention of the hon. Member for Bermondsey and Old Southwark in new clause 5, but we believe that, at the moment, there might be unintended consequences for reducing the charitable funds raised to help victims of terrorism. Were the new clause to become law, some of the digital fundraising platforms might stop people setting up fundraising pages for the victims of terrorism, resulting in less charitable funds being raised. There is also a risk that funds already raised by established charities, using professional fundraisers, which could have been used to support victims, could not be used for the proper purpose. There does not appear to be a clear rationale, as I said earlier, about where we draw the line. I hope that he understands why I cannot support the new clause.

I assure the Committee that work is underway to improve the transparency of digital fundraising platforms and the co-ordination of charities’ responses to major incidents, including supporting victims of terrorism. I am happy to facilitate a meeting with the hon. Gentleman and the Minister with responsibility for charities to talk that through directly. As a Security Minister, my locus is over terrorism, but the wider regulation of charities across the whole sector—all types of charities—is the responsibility of another Minister. I am happy to present the hon. Gentleman’s intentions in this new clause to that Minister and then arrange a meeting between them.

I hope that I have reassured the hon. Gentleman that we are working through the Fundraising Regulator and the Treasury to ensure that his concerns are met. At the same time, we are trying to balance the modern technology of the world, which a lot of people use to fundraise and collect donations.

--- Later in debate ---

[Mr Wallace]

I do not disagree with the hon. Gentleman. The first thing to do in a big event is get out loudly and publicly the alternative charitable telephone numbers. Telephone lines for donations are always set up, often directly to charities and sometimes through the Department for International Development—for foreign emergencies —or other Departments. That is the first path.

I am constantly disappointed by this. As an ex-soldier, I was approached by a forces charity and asked to be one of its many patrons, only to discover that a massive wedge was for the fee. The charity does not advertise that on its stall when it is raising money. The problem has gone on for too long, which is why the Government, with cross-party support, introduced the 2016 Act. That was also on the back of elderly people being ruthlessly pursued by some fundraisers. The charity sector, in many different areas, has to clean up its act. Recently we have seen sexual harassment cases in some major charities.

My worry is that those who sometimes oppose charities might seek to exploit all that. We have to get this fine balance right, because we want people to keep giving. We should be much more prescriptive about fees, we should publicise how much they are and what the alternatives are, and we must recognise that people give in many different ways. That giving costs money.

An amazing thing, which no one ever really publicises, is that during Ramadan mosques in this country raise £100 million for charitable causes. That is a huge collective effort over a short period. One of the pillars of Islam is charitable giving, but people do it differently. We have to ensure that the platforms that people use, whether verbally in the mosque or online, are supported and enabled without grotesque profits being made out of suffering.

We have therefore taken the power under the 2016 Act. The first process is to get the industry, through the regulator, to self-regulate, with us keeping a close eye on it. Where the system has been abused, we have to go to the heart of things and question motives. Abuse of gift aid, for example, makes me incredibly worried. What type of organisation does that? I hope that my hon. Friend the Exchequer Secretary takes strong and swift action—I shall reinforce his efforts—to ensure that is dealt with at once.

I hope that I have reassured the hon. Member for Bermondsey and Old Southwark. I agree with his motives but not his methods, so I ask him to withdraw the motion.

[Neil Coyle]

I have listened carefully to the Minister, but I am afraid that I am not reassured, for a number of reasons.

I have spoken to the Treasury about its plans and I am interested in having a discussion with the Minister with responsibility for charities, but I remain aware that JustGiving meets with charities in this country about the more immediate Disasters Emergency Committee-type approach to an international incident. It goes to the table with the charities, which are working out how best to support people through the immediate aftermath of a terror attack and the urgent need of communities affected. The fundraising platforms, however, are sitting at that table and they know that they can make a profit out of the incident and future events. Their involvement will guarantee them additional income and revenue on the back of a terror attack.

Precisely because the Bill covers terrorism, the charities issue deserves to be treated separately and can be drawn out uniquely. Terrorism, being so uniquely horrific, is clearly the reason why the public are so generous in their response. That is why the figures are so much higher after a terror attack, because people respond. The British public respond when they see children attacked in Manchester, because they want to be able to help. When they see innocent civilians enjoying a night out around Borough market, they want to donate. The large sums arising from those donations are the reason why there is more significant concern.

I had hoped that the platforms involved—JustGiving is the prime player, but there are others—would have done more to cap their own policies, but they have not done so. I do not accept the idea that they would no longer be there or that this would limit future donations, because others would always step in to fill that gap.

There is a unique opportunity with the Bill not to undermine the collective will of the British public who seek to help innocent civilians and their families. The ministerial mantra of terrorists not beating us or changing our way of life can be reflected in this new clause. It would mean that donations from the public that are designed to support the continuation of our way of life are not watered down through the profit margins of others. The Government are trying to take some action. The Minister suggests that we wait and see if that works, but we have a clause here that would do the job much quicker and better.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

I wholeheartedly agree with my hon. Friend. Platforms such as JustGiving are behaving in a very uncharitable way. The Minister has an “It’ll be all right on the night” policy, but I am reminded of when in 2017—my hon. Friend the Member for Scunthorpe was with us then—the same argument was made about the public register of beneficial interests. The Minister on that occasion said, “Let them do it on their own,” but public opinion forced the Government to climb down. I urge Government Members to join my hon. Friend the Member for Bermondsey and Old Southwark. Even The Sun has backed this campaign—

[Dr Huq]

Even The Sun newspaper, which normally is not really friendly to the Labour party. I pay tribute to my hon. Friend’s work and I hope that the Minister will think again.

[Neil Coyle]

As the Member with The Sun in his constituency—News UK’s head office is at London Bridge—I am definitely proud of part of the contribution it makes on this issue. Let us leave it there. In response to what the Minister said, there is no need to wait. The new clause would do part of the job by ending the profit from some of these platforms. It does not prevent admin or running costs being collected or those platforms from existing in future, but it sustains the trust that they rely on to continue to be the go-to point for people seeking to raise money after terror attacks or other incidents. Very simply, I urge the Committee to support new clause 5.

Question put, That the clause be read a Second time.

--- Later in debate ---

[Mr Wallace]

We absolutely have. It is not just about scale or who is better at one thing over the other; it is genuinely that in such activity the sum of the parts is greater. The United Kingdom has developed a clear lead on counter-terrorism policy through our intelligence services and police services learning to work together on domestic issues quicker than our European allies. That needs to be scaled up to working internationally. At the same time, we need to navigate the real obligation of the state to protect its citizens’ data. It is not a free-for-all.

The hon. Member for Torfaen is right, and we are totally determined to get there through negotiation. It is not that we disagree; I simply take the view that primary legislation is not the place for individual parts of a negotiation. The new clauses would not make any difference, because the Government would not be bound to the outcome but just be saying, “This is what we intend.” The Prime Minister has said what our position is and what we want. I have said it to the Committee, and we have said it to the European Commission. It has been said on a number of occasions and no piece of primary legislation will change that. We agree with the intention, and I understand the symbolism of putting an objective into the Bill, but it is not necessary. As long as I am the Security Minister and the Government are negotiating, we wish that to be the case, and that is what we are asking for.

The hon. Member for Cardiff South and Penarth worries about the new Brexit Secretary, but we are all in a team with collective responsibility and he was probably not aware in 2014 of the clear importance of intelligence and security sharing and how it makes a difference to saving lives every single day. Most recently—two weeks ago—the United Kingdom contributed a significant part towards foiling a plot in Cologne involving a terrorist who had managed to make ricin and was making a bomb to devastate that city and its people.

As long as I have breath in my body, I shall do everything I can, but I do not believe that primary legislation is the place for our negotiating objectives. I will happily arrange it for anyone who is in any doubt to visit our police officers to see how important that is.

[Neil Coyle]

When she was Home Secretary, the Prime Minister warned that Brexit had risks for our national economy and national security. Does this new clause not go some way towards reassuring the Prime Minister about her concerns about Brexit?

[Mr Wallace]

I refer the hon. Gentleman to the Prime Minister’s Munich speech in February, in which she continued to make this point about security—it is not a competition and our offer is open. The only danger to our security would be a dismissal by the European Commission out of hand and refusal to give us any intelligence or data. That would be a danger to us and to it; it would cut off its nose to spite its face.

All the Commission’s professionals, and member states’ intelligence services and police forces, are telling them that. In all my meetings with member states’ Interior and Security Ministers, they agree and concur. It is time that the Commission reflects that, because it is in the interests of European citizens to continue this relationship. It is not purely in our interest; it is in their interests, too.

The Prime Minister is absolutely determined on this point: a safer Europe is a safer Britain; and a safer Britain is a safer Europe. I do not think that will change. My simple dispute with the Opposition Front-Bench spokesperson is that I do not believe that this duty needs to sit in primary legislation.