NHS (Charitable Trusts Etc) Bill

Wendy Morton Excerpts

Friday 22nd January 2016 Commons Chamber

[Michael Tomlinson]

I understand that point, which is similar to other points questioning the benefit and the cost, but I respectfully suggest that the benefit outweighs the cost in this case and that the public, seeing that they are consulted, would once again be re-engaged with the political process, which I think my hon. Friend should support.

[Wendy Morton (Aldridge-Brownhills) (Con)]

My hon. Friend rightly points out that my private Member’s Bill emerged as a result of consultation with NHS charitable trusts. Does he agree, however, that it is unusual to be seeking public consultation on a technical change that is consequential to my Bill?

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[Michael Tomlinson]

I am very grateful for that helpful intervention. I would wish to expand on the issue of an EU referendum, but I suspect that Mr Speaker would encourage me to move on, so I will not be tempted down that line. I understand the point my hon. Friend makes and will merely respectfully suggest that the word “appropriate” speaks for itself and requires no further elaboration.

Given your encouragement, Mr Speaker, I will now move on to amendments 5 and 6, which also stand in my name and that of my hon. Friend the Member for Erewash. They seek to remove the requirement that the regulations may make provision consequential to the removal of the Secretary of State’s powers; in effect, they would remove the affirmative resolution procedure and insert the negative one. They are simple amendments, so I will not take up your time in debating them at length, Mr Speaker. In effect, the debate is being held now, as is perfectly appropriate, and it would therefore be unnecessary in this case to bring it back.

[Wendy Morton]

We have discussed the use of the word “appropriate”. Does my hon. Friend feel that these two amendments are appropriate and necessary? I do not feel that they add anything to the Bill, and there is no need for them.

[Michael Tomlinson]

I am grateful for that intervention, but my view is that in this case it is unnecessary to use the affirmative procedure to approve the matter and the negative procedure would suffice. I understand the point that my hon. Friend makes, but I respectfully suggest that these amendments are appropriate. I was looking up one of the notes in the Library, perhaps one prepared by one of your predecessors, Mr Speaker, and I found that it stated that the affirmative procedure is less common, being used in perhaps only 10% of cases.

I will not take up time by referring to the other amendments, merely noting that several and other hon. Members will speak to them in due course. I look forward to a constructive debate on this group.

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[Mr Rees-Mogg]

My hon. Friend ignores the starting point, which is that the Secretary of State makes the appointments, whereas that has never been the case for other charities. They have evolved differently, whereas NHS charities are evolving out of the NHS, more towards the private sector. To put in place a safeguard which one hopes would not be used seems to me quite a prudent thing to do. It says, “This is our hope, this is our intention. We expect it to work and we think it will work in the vast majority of cases and make NHS charities more like other private sector charities.”

[Wendy Morton]

Will my hon. Friend give way?

[Mr Rees-Mogg]

Of course I give way to the promoter of the Bill.

[Wendy Morton]

I am grateful. The Charities (Protection and Social Investment) Bill is proceeding through this House. It comes back to the Chamber next week, giving us the opportunity to hear more about the work of the Charity Commission. Does my hon. Friend agree that when the NHS charities that we are discussing today become independent, there is the assurance that they will be covered by the Charity Commission? That goes a long way to ensuring public trust in those charities, which is the crux of the matter.

[Mr Rees-Mogg]

I suppose the answer is “Up to a point, Lord Copper.” The Charity Commission has marvellous and admirable elements. It has a brilliant chairman who has been a great force for good in that organisation, sorting out some of the problems that it had before his appointment. I think particularly of the dreadful treatment meted out to the Plymouth Brethren before he was there. It is none the less an unelected, unaccountable quango. I take the rather extraordinary view that we should trust our democratically elected politicians more than we should trust the unelected. That is why I am always banging on about this House maintaining its own powers, and why we should hold Ministers to account. We should be very cautious about thinking that an independent, unaccountable body is a better supervisor than the democratic will of the nation expressed through this House.

When responsibility is shifted, it is prudent to do that cautiously, in stages, and to keep a safeguard in place. When the first case goes wrong, which it will—within 10 years something will have happened; there will be an NHS charity where the accountant has snaffled off all the money and gone to Barbados or wherever it is fashionable to go at this time of year, or perhaps gone off to South Africa to watch the test match—at that point people will say, “Why didn’t the Government do something about that? Why have they not got a plan? Why didn’t they make sure that they could keep it under control?”. Having a protection, possibly even a time-limited one—

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[Mr Rees-Mogg]

I reiterate—I am sorry, Mr Speaker, to reiterate. I may be becoming repetitive, but I hope not yet tediously repetitive; that may come at a later stage. We need to look at the starting point. These charities are coming out of the control of the Secretary of State. To move them completely away from his control in one fell swoop may be relatively imprudent, whereas to do it more cautiously and keep a safeguard is perfectly sensible. By contrast, in the case of charities that have never been under the Secretary of State and have never had their trustees appointed by the Government, it is perfectly sensible to leave them with their existing regulatory system.

[Wendy Morton]

We have had a lot of debate about the term “appropriate”. What exactly does my hon. Friend mean by “cautiously”? I have to say that I am very sceptical about this amendment.

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[Mr Rees-Mogg]

As I said, it is a question is how we get to where we are going from where we are starting. As we make the transition, it is absolutely crucial to ensure that the money is handed over in a way that is properly audited so that people can have confidence in the NHS charities and not feel that there is some kind of sleight of hand or money is being siphoned off.

[Wendy Morton]

Does my hon. Friend not agree, though, that funds donated to the NHS and put into these charities must be held separately from Exchequer funding provided by the taxpayer? Charities exist to support their beneficiaries, and there is a special relationship between the charities and the—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I am trying to be helpful to the hon. Lady in saying that I know it is a great temptation to address her remarks to the hon. Gentleman and look at him to gauge his reaction—looking at him is always, of course, a very great pleasure—but if she turns her back on the rest of the House, it does not work. It is really important that she should face the Chair. She can still speak about the hon. Gentleman and imagine him in her mind as she does so.

[Wendy Morton]

Thank you, Madam Deputy Speaker. It is wonderful just to be able to imagine my hon. Friend in my mind. I have finished my intervention, but I am grateful for your advice and reminder.

[Mr Rees-Mogg]

Thank you, Madam Deputy Speaker. This has been a very distracting interlude, I must confess.

The key is the safeguarding of money and ensuring that things are done properly with an audit trail.

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[Wendy Morton]

I take exception to the point about the Bill taking up the House’s time. It covers not only Great Ormond Street hospital, which is only one clause in it, but the group of special NHS charities. There are about 16 in total; there were 20. In the bigger scheme of things, there are around 260 NHS charities throughout the country, which all do fantastic work, and the Bill really deserves the debate, and the discussion about some interesting amendments. Although I will speak later, I will not support my hon. Friend’s amendments.

[Kit Malthouse]

My hon. Friend makes a mistake. I did not object to the time; my hon. Friend the Member for Horsham (Jeremy Quin) objected to time possibly being used on these matters. I am perfectly happy. I think that the Bill is very good and I support its broad thrust.

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[Kit Malthouse]

No, I would like to move on to amendment 2. I am conscious that others wish to speak.

Amendment 2 would address a particular issue that I have come across in my constituency work. The only national charity that is located in North West Hampshire is the Macular Society. It is quite small and raises about £5 million or £6 million a year, most of which goes into research. One of the complaints of the Macular Society, which obviously deals with sight-related illnesses, is that enormous charities for sight and blindness, such as RNIB and Guide Dogs for the Blind, which raise many tens of millions of pounds—more than £100 million each—put hardly any money into research. Although they are engaged in blindness in its wider sense, they do not use their muscle to improve the lives of those who are afflicted by blindness or partial sightedness through trying to find cures and therapies.

The Macular Society and others complain about that and the fact that, if there was more research, we might be able to do something about the conditions. Part of the reason for the lack of research must be the disconnection with the organisation with which the charities should engage. For example, although I have not looked, it would doubtless be helpful to Guide Dogs for the Blind if it had representatives on its board from the scientific community and some hospitals, such as the Western eye hospital, because then the charity might be compelled to put money into the right causes.

The amendment seeks to ensure that, when an NHS charity is attached to a particular hospital, that hospital is allowed to put at least one trustee on the board. The charities need to stay connected. They need to have a line of communication and to be able to see the right priorities in the organisation rather than decide on their own pet projects, which they foist on the hospital without negotiation. The disconnection between charity and purpose can often happen, and it seems to be particularly pertinent to blindness.

[Wendy Morton]

On the point about making these appointments, it would be helpful if my hon. Friend clarified to exactly which bodies the Secretary of State would have powers to appoint under the amendment.

[Kit Malthouse]

I am sorry, but I am actually talking about amendment 3, not amendment 2. I am getting myself confused because, in usual British fashion, the amendment paper has the amendments in the wrong order. I will deal with my hon. Friend’s point when I get to amendment 2.

Amendment 3 would simply ensure that, if any hospital has a charity attached, it has the power to appoint one trustee. That seems sensible. Many of those charities will already have such a provision in their trust document. The amendment would just to make sure of that.

Amendment 2 states that in “exceptional circumstances” the Secretary of State should have the power to

“appoint one or more trustees”.

That returns me to my primary point about when charitable trusts go rogue or off the reservation, or where charitable trustees become locked in a group-think situation. Rather than dismiss them all and take control, the Secretary of State may feel that it is more appropriate to appoint one or two people from outside who can add a bit of ginger to the board’s discussions, and challenge what they are doing.

For example, a particularly powerful charity that is attached to an NHS hospital might feel that it is flush with cash and that it needs to intervene in a dispute with its doctors, or that it may have cause to campaign politically against some of the things that the Government are doing. It might want to lobby on the NHS settlement by region. When trustees or charities stray into that area—there has been a lot of consternation about that across the House with regard to particular charities—the Secretary of State may reserve power in those exceptional circumstances to appoint one or two trustees to challenge that view.

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[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I did not want to interrupt the excellent flow of the hon. Gentleman’s argument, but, for the sake of clarity and the avoidance of doubt, and because he referred to the numbering and order of amendments—he has not said anything wrong; I wish merely to educate the House—I wish to explain that the order in which amendments are numbered is that in which they are received in the Public Bill Office, but the order in which they appear on the amendment paper is that in which they relate to the Bill. It is actually very logical, but if one does not know why, it sometimes is not obvious.

[Wendy Morton]

As the Bill’s promoter, I rise to contribute to its Report stage.

We have listened to some interesting amendments from hon. Members, for whose submissions and contributions I am grateful, as they have enabled us to discuss, probe and question the Bill further, which is really important. It is worth reminding ourselves that, as of March 2015, there were about 206 NHS charities, with a combined income of £327 million. They do a terrific job and make a huge contribution to many patients, hospitals and NHS staff. Everyone will agree that the vast majority of them, like all charities, do fantastic work and that only occasionally does something go wrong. Sadly when it does, as has been said today, it always makes the headlines.

The vast majority of NHS charities use the corporate trustee model, whereby the Secretary of State does not appoint the trustees.

[Pauline Latham]

I do not know whether my hon. Friend plans to mention the special care baby unit at Royal Derby hospital, but it has existed for more than 50 years and raises millions of pounds to help those special babies who are born prematurely and need extra help. Does she agree that all the charities that support NHS hospitals do incredibly valuable work?

[Wendy Morton]

I agree wholeheartedly, and I am grateful to my hon. Friend for sharing with us the example of a hospital charity in her constituency and the fantastic work it does.

I thank my hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) for his amendment that would oblige the Secretary of State to carry out public consultation before making regulations consequential to the removal of his power to appoint trustees to NHS bodies. I understand where he is coming from. In my time as a councillor, many were the days when we discussed the pros and cons of public consultation. On the one hand, we often want more public consultation, but there are times when, as my hon. Friend the Member for North West Hampshire (Kit Malthouse) said, we feel it leads nowhere. It is an interesting point, though, and one that has provoked some lively debate. We, as elected representatives, often ask these questions about public consultation.

[Craig Whittaker]

I am reminded of my family’s frequent trips to Disneyland Paris when my three children were much younger. Their favourite ride was the Peter Pan ride. They played a game to see who could first spot Wendy quivering on the end of the gangplank as Captain Hook chased her into the sea. Does my hon. Friend think that Wendy might be quivering that little bit harder at the thought of yet more public consultation?

[Wendy Morton]

Absolutely. I hope not to be pushed out to sea either, but that remains to be seen. I sincerely believe, however, that the Bill has a lot of support, as I will mention later on Third Reading.

[Michael Tomlinson]

Does my hon. Friend not recognise the central thrust of my argument—that the Bill itself was the product of public consultation? All those doom-mongers who have spoken against public consultation fail to see that such consultation has produced some good—namely, her own Bill.

[Wendy Morton]

My hon. Friend is correct that my Bill is the result of public consultation, as I will expand upon later.

Schedule 1 already makes a range of amendments to primary legislation consequential to the removal of the Secretary of State’s powers in England to appoint trustees to NHS bodies and to appoint special trustees, and it would be unusual to consult the public on regulations making such consequential changes. Proper scrutiny of such consequential amendments would be undertaken by Parliament. That is the main reason I do not support his amendment even though it is a valid discussion point.

I will move now to those amendments that relate to the appointment of trustees. My hon. Friend the Member for North West Hampshire has clearly given a lot of thought to my Bill and introduced some very worthy and interesting amendments. I wish to make it clear, however, that I do not wish to swap the letterbox of Aldridge-Brownhills for that of North West Hampshire, given the apparent tone of much of the mail that he receives, and neither would I wish to go camping with his family—the thought of my sleeping bag being laid on concrete does not appeal. I would prefer something more comfortable. Even a field would be preferable—ideally undercover.

The removal of the Secretary of State’s powers to appoint trustees is central to my Bill. Having him appoint trustees makes it difficult for these NHS bodies to demonstrate visible independence from Government in the eyes of potential donors. That cuts to the heart of my Bill. Having read and considered the amendments carefully, and having listened to this debate, I struggle to see how they would work on a technical level. The current power is to appoint trustees to particular NHS bodies or to appoint special trustees, not, as the amendments suggest, to appoint trustees to NHS charitable trusts. They therefore seek to re-establish a power that does not currently exist in such a form. I know that the Bill at times gets very technical, but we have to keep coming back to what it sets out to do and the consultation it came from. Similarly, the amendments seeking to retain the Secretary of State’s power to appoint trustees in particular circumstances, when there is a commitment to remove them, are not appropriate.

Before I talk further about amendments relating to trustees, it is important to remind ourselves of the background to clause 1, which I have alluded to before. The Bill concerns the removal of the Secretary of State’s powers to appoint. Since 1973, the Secretary of State has had powers to appoint so-called special trustees to manage charitable property on behalf of hospital boards. In 1990, powers for the Secretary of State to appoint trustees in relation to NHS trusts were enacted, and have since been extended to other NHS bodies. These powers are now set out in the National Health Service Act 2006, as amended.

My private Member’s Bill fulfils a commitment made by the Government subsequent to the Department of Health review and consultation—there is that word again—in 2012, which covered the governance of NHS charities. As a result, NHS charities will be allowed to convert to independence and the Secretary of State’s powers to appoint trustees will be removed at the earliest opportunity. That is what my Bill is designed to achieve.

[Mrs Sheryll Murray]

In the light of what my hon. Friend has said, are not some of the amendments completely unnecessary, because consultation has already taken place? Is that correct?

[Wendy Morton]

Absolutely. As I am explaining, the amendments, worthy of consideration though they be, are not necessary in the light of the research I have done, and they would fundamentally change the objectives of the Bill.

The amendment to make

“provision for one trustee to be appointed by the NHS institution…for whose benefit the charitable trust exists”

is an interesting one, but again I do not believe it necessary. Under the new independent charity model there can be a “blend of trustees”, meaning there can be a link to the hospital—on the proviso that the NHS members remain in the minority. That is important. When we are seeking to move away from Secretary of State appointments to a more independence model for special charities, it is the word “independence” that is crucial. These charities are seeking to be independent of Government for fundraising and many other purposes.

[Kevin Foster]

My hon. Friend may be aware that the Public Accounts Committee recently considered a report on the sustainability of NHS trusts, many of which are in deficit. Does she agree that if they had a right to appoint a trustee, it could reinforce in the public’s mind that these charities are about back-filling money into the NHS that could or should be provided by the Government rather than being independent charities providing extra money to what is provided by the Government and the public sector?

[Wendy Morton]

My hon. Friend raises an interesting point. The key point of my private Member’s Bill is to enable this group of charities to achieve what they said they wanted in the consultation, which is a shift away from the Secretary of State’s powers to appoint so that they can demonstrate independence. The charity world has moved on so much since charities were first created, and the model of governance needs to change in the same way.

What makes this particularly interesting is that previous rules surrounding the appointment of individual trustees were restricted to one linked person only. In any case, I believe that the new arrangements in the Bill—not the amendments—are far better and far more beneficial because this “blend of trustees” helps further to help and enhance communications and understanding by both the charity and the trust. Surely that can only be a good thing.

If I may, as the Member in charge of the Bill, I would like to touch on amendment 9, which deals with the use of the NHS logo and was tabled by my hon. Friend the Member for North East Somerset (Mr Rees-Mogg). I shall not make too many references to fashion. Although I could make many a link between logos—and, indeed, brands—and fashion, I shall leave Members to draw their own conclusions about the fashion, style or otherwise of my hon. Friend. To be fair, he raised the issue of the NHS logo on Second Reading, so it is only right for him to bring it forward today as an amendment for consideration. I bow, if not to his fashion sense, to the grace and eloquence of his style in speaking to his amendment today. Perhaps we could share some lessons.

The term “logo” can be defined as a symbol or other small design adopted by an organisation to identify its products, uniforms, vehicles or perhaps a company or organisation. It is often uniquely designed for ready recognition, and I think the NHS logo fits that definition. It is instantly recognisable, and the public know exactly what it is all about. However, I cannot support the amendment because I believe it is a matter best explored through the Department of Health or perhaps through the memorandum of understanding, which is part of the move to independent charity status. It should not become part of this Bill.

At risk of sounding—hopefully not appearing—more like Hook than Wendy Darling, I will bring my comments to a conclusion by simply saying that although we have explored worthwhile amendments this morning and raised some important points, I shall not support any of those amendments.

[Maggie Throup]

I am delighted to speak in support of this important Bill on Report and congratulate my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) on leading it through the complexities of the House. In the time available—I shall keep my contribution short because I realise how long it has taken us to get this far this morning—I shall speak specifically against amendment 2. If accepted, it would give the Secretary of State the power to introduce secondary legislation to re-establish his or her right to appoint trustees to NHS charities.

Charitable giving is one of the cornerstones of our society, with the Charities Aid Foundation estimating that in 2014 alone £10.6 billion was donated by the British public to a variety of good causes. Indeed, we are the home of some of the world’s greatest charitable fundraisers such as Children in Need, Comic Relief, Sport Relief, and not forgetting, of course, Live Aid.

One clear message that came out of the 2014 consultation on the governance of NHS charities was that potential donors felt put off by the perceived lack of independence of the charities from the Government. One of the Bill’s fundamental principles that seeks to rectify this perception —one that I wholeheartedly support—is the removal of the right of the Secretary of State to appoint trustees to particular NHS bodies or to appoint special trustees.

The Bill is designed to give more autonomy to NHS charities to appoint their own trustees and bring them into line with most of the rest of the charitable sector, in which that is already common practice. As well as removing the perception that the charities lack independence from Governments, such a move would enable them to adopt different legal forms specific to their needs, particularly those offering limited liability. It would remove the barriers of dual regulation under both NHS and charity legislation, which currently make it difficult for NHS charities to achieve and demonstrate true independence.

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[Kevin Foster]

My hon. Friend makes excellent points about the difficulties in reaching everyone. In the consultation that created Cornwall Council, there was a major discussion to be had on, I believe, six district councils and one county council being merged into one. There was significant media coverage on, for instance, BBC “Spotlight” and BBC Radio Cornwall, but still, even after all that, some people will have said, “I didn’t know the consultation was going on,” or “I didn’t know exactly what the nature of the consultation was.”

I sat through discussions about future local government structures, including referendums on an elected mayor, during my time in the midlands. People could, I think, engage with some things—for example, planning decisions or social services decisions—but in terms of how a local charity board is structured at the local hospital, and who can make appointments, how they are structured and the process gone through to make them, I cannot see many people saying, “I want to go out to talk about that on a Tuesday night in mid-February.”

If we are having consultations, they should be meaningful. On the question of what is “appropriate”, we should be asking what the appropriate stage is of decision making for each item. As I have argued in the Chamber before, on major constitutional change—the voting system for this House, for instance, or whether we abolish, or significantly change, the other place—we would probably at least need a manifesto commitment, and without that people should be directly asked for their consent to make that change. In terms of the fundamental constitution, it should have the direct consent of the people, therefore. At the other end of the spectrum, however, none of us would argue that the things that this House deals with through secondary legislation would be appropriate subjects for public referendums.

We should ask what the appropriate process is, and in this case the appropriate level of consultation would more be along these lines: “Yes, the charities should talk to each other and, yes, they should go through the normal process to appoint trustees by speaking to their members, but they do not necessarily have to host a public meeting to discuss that.” If this amendment were passed, there would be the nonsense that these particular charities would be required to go through a public consultation, yet the vast majority of charities in this country, who are regulated under the normal method for charities, would not have to do so. I recognise the intention of my hon. Friends the Members for Erewash (Maggie Throup) and for Mid Dorset and North Poole (Michael Tomlinson) in wanting people to be able to engage with the NHS and its services, but this amendment is not the right way of going about it.

On amendments 1, 3 and 2, tabled by my hon. Friend the Member for North West Hampshire (Kit Malthouse), I found the level of doom and disaster that was presented as possibly affecting these particular NHS charities quite interesting. If anyone listening is thinking of becoming a trustee, they might be slightly put off from doing so when they hear all the things that could possibly happen to them as a member of the board of trustees of one of these charities. I am not at all convinced that we need special provision in this Bill for these charities, rather than the wealth of charitable legislation that we already have, including a Bill currently before this House to change that legislation.

I do not think these amendments would tackle the issues, and worst of all they still give the idea that the Secretary of State is in control of a charity. As I said on Second Reading, at the heart of this Bill is independence. It is about these charities not being seen as an arm’s length part of the Department of Health—not being seen as government by the back door.

[Wendy Morton]

Does my hon. Friend therefore agree that these amendments on trustees, which seek to re-establish the powers that my Bill wishes to remove, represent a regressive step, rather than the progressive step the Bill seeks to deliver?

[Kevin Foster]

My hon. Friend is right. The whole point of the Bill is to free these charities from being, in effect, arm’s length parts of the Government. If we say, “We want to free you, but now we want to pop back in the Secretary of State having specific powers that do not apply to any other charities”, that is not a coherent argument and it would not produce coherent legislation. Hon. Members may have concerns about how charities are regulated and whether someone can go off to the Seychelles with the money, but that is a debate about the wider system of charity regulation in this country. They should not seek to put something specific into this Bill that adds another layer of bureaucracy for the charities involved, given that the whole point of the Bill is to get shot of such bureaucracy. I am not persuaded by those amendments.

Amendment 9 deals with the NHS logo. It was put forward eloquently by my hon. Friend the Member for North East Somerset (Mr Rees-Mogg), but, sadly, I will not be joining in the fashion of supporting it. I appreciate that the bodies it deals with are working closely with the NHS, but so, too, do other charities. For example, the Torbay Hospital League of Friends has its own logo and it successfully raises money for Torbay hospital. The name makes it obvious what it is linked with.

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[Wendy Morton]

I beg to move, That the Bill be now read the Third time.

Let me begin by thanking Members who are here today for giving up another constituency Friday to take part in the debate. Some of them were also present on Second Reading, including my hon. Friends the Members for Erewash (Maggie Throup) and for North East Somerset (Mr Rees-Mogg), who is no longer in the Chamber. I also thank those who served on the Public Bill Committee, absenting themselves from the debate on Syria to be present on that day, and, again, I thank Members on both sides of the House who sponsored my Bill last summer after my name had been drawn in the ballot, allowing Peter Pan to find his Wendy—or, at least, I hope so. I thank the Department of Health for its help, and, as a new Member, I thank those in the Public Bill Office, whose patience has been admirable. I should also record my thanks to the hon. and learned Member for Holborn and St Pancras (Keir Starmer) for supporting the Bill; sadly, he is not present today.

I welcome my new Tinker Bell to the Dispatch Box. I feel duty bound to reassure her that I remain on my guard for ticking crocodiles, Captain Hook and, of course, those unruly Lost Boys, although they are not here at the moment.

I am, of course, delighted that my NHS (Charitable Trusts Etc) Bill—commonly known, I hope and believe, as the Peter Pan and Wendy Bill, without brackets or Etc—has safely arrived at its Third Reading. There has been no exit stage left, or right, taking it directly to Neverland; it is still en route to another place, and, I trust, to Royal Assent.

On Second Reading, we were given many examples—some based on personal experience—of the importance of NHS charities and their role in supporting hospitals, patients, parents and staff. That has been underlined by the accounts that we heard today of the tremendous work that NHS charities do, and it also demonstrates the Bill’s importance in helping those charities to continue and flourish.

As I have mentioned before, NHS charities are regulated under charity law, but they are also linked to NHS bodies and bound by NHS legislation. They are charitable trusts, established under NHS legislation, and have as their trustee an NHS body such as a foundation trust, or trustees appointed by the Secretary of State for an NHS body. It should be borne in mind that NHS charities are distinct from independent charities established solely under charity law.

Funds donated to the NHS must be held separately from Exchequer funding provided by the taxpayer. These charities exist to support their beneficiaries, and there is a special relationship between them and the trusts with which they are associated. Some wonderful examples have been given today of local hospital charities and the special relationship that they have with their local NHS trusts.

The first part of the Bill makes provision to remove the Secretary of State for Health’s powers to appoint trustees for NHS charities in England and makes amendments to primary legislation concerned with this. It is important to remember that this fulfils a commitment by the Government in 2014, subsequent to a DOH review and consultation on the governance of NHS charities. The outcome of the consultation was that NHS charities would be allowed to convert to independence if they chose to do so and the Secretary of State for Health’s powers to appoint trustees to NHS charities under the National Health Service Act 2006 would be removed at the earliest opportunity.

It is fair to say that a number of the larger NHS charities called for reform because of concerns that the NHS legislative framework limited their freedom to grow and develop their charitable activity to best support their beneficiaries and to demonstrate to potential donors a visible independence from Government. That is an important point, and some have already grasped the opportunity to become independent while others are in the process and some are planning to do so in the future.

Collectively across the country about 260 charities currently exist to receive and manage charitable funds on behalf of NHS charities. I am sure Members will be interested to know that just over £345 million was raised by these charities in the last financial year, supporting patients and staff right across the country, so we should be doing all we can to support them. They make an outstanding contribution, yet their work often goes unheralded. I hope that today’s debate helps to publicise their work and the valuable contribution they make to hospitals as well as to the lives of patients, their families and clinicians. But just as healthcare moves on, so does the charitable environment, and there is a real need to place certainty in an already complex structure. I hope, and believe, that that is what this Bill will do.

There are currently 16 NHS charities that have trustees appointed by the Secretary of State for Health, and all of them are affected by my Bill. They are bound by charity law and NHS legislation. They are unincorporated and their trustees have unlimited liability.

[Maggie Throup]

My hon. Friend mentions that NHS charities are bound by charity law as well as other legislation. We both sat on the Charities (Social Investment and Protection) Public Bill Committee. Can she expand on why her Bill should be a separate Bill and why its measures cannot go through as part of that Bill?

[Wendy Morton]

My hon. Friend makes an interesting point. I also sat on the charities Bill Committee, and it comes back to the House next week, I believe. My Bill is a specific piece of legislation. It came about because of Great Ormond Street hospital and the need to move the right to the royalties. It also comes under the remit of the DOH, whereas the charities Bill is under the remit of the Minister for Civil Society and the Cabinet Office. My Bill, at its heart, goes to the fact that the original Act on the Peter Pan royalties and the extension to the signed copyright patent was unique—so that unique bit of legislation needed another unique bit of legislation.

Sixteen of the charitable trusts have chosen either to revert to a corporate trustee model or to become independent. Most hospital charities operate the corporate trustee model anyway, and we have heard a lot about that today. Many have indicated that they are seeking to make this transition and many others are also considering it.

Six charities have already completed the transition to independence. These include Barts Charity, which raises money for Barts Health NHS Trust, including St Bartholomew’s hospital. This was the first to receive an independence order. The others are Alder Hey in Liverpool, Birmingham Children’s Hospital Charity, which is close to my own constituency of Aldridge-Brownhills, Guy’s and St Thomas’ Charity, and the Royal Brompton and Harefield Hospitals Charity. They are all now able to benefit from greater independence and less bureaucracy, and that further demonstrates the benefits of the Bill. Great Ormond Street’s is one of the six to have converted to independence. I will come back to that, as well as to its unique status and the need for specific legislative change to remove the statutory obstacle currently preventing the charity from becoming fully independent. Of the remaining NHS charities, about half have agreed to convert to independence but have not yet formally informed the Department of Health, while the others are in discussion with their trustees and hospital boards.

Importantly, the Bill is supported by Great Ormond Street hospital and NHS charities more generally. It also has the support of the Association of NHS Charities, and I would like to put on the record my thanks to it for its help. Let me provide a quote from a chief executive of an NHS charity, as that is a good way of explaining why the Bill is important. This chief executive said that

“this is exactly the right move for us as it deals with a peculiar anomaly in our status. Moving to full independence will mean that we can compete on a level playing field with other health and social care charities in our fund raising and other activities. No longer being seen as part of government.”

On Report, we received some interesting amendments from hon. Members, who gave us the opportunity to explore and question a number of points in relation to the Bill. Although I am pleased they were not pressed to a vote and were not accepted, I believe each was worthy of our sincere consideration.

Turning now to the second part of the Bill, it is important to remind ourselves of the special link that Great Ormond Street hospital has with J. M. Barrie, who made a very generous bequest to it of the right of royalties to the “Peter Pan” stories. As I explained on Second Reading, J. M. Barrie bequeathed all rights to “Peter Pan” to GOSH in 1929. He died in 1937, with GOSH enjoying a further 50 years of royalties. On the eve of the copyright expiring, the J. M. Barrie bequest acquired its unique legal status as a direct result of Lord Callaghan’s amendments to the Copyright, Designs and Patents Act 1988. That reserved royalty income to the hospital trust and carried the stipulation of the creation of a special trust at that time. Though now held in perpetuity by GOSH, legislation is needed to enable the receipt of royalties to move to the new, independent Great Ormond Street Hospital Children’s Charity. My Bill, with its provision for amendments to the 1988 Act, will do that. It will enable GOSH to take full advantage of this move to independent status, thereby giving it greater freedom to attract additional funding. It will also reduce the burden of bureaucracy by leaving it under the sole jurisdiction of the Charity Commission.

I am sure Members will be interested to know that I have met representatives from the GOSH Children’s Charity, and, as I reported on Second Reading, I have visited the hospital to see for myself the work the charity does and the huge contribution it makes. I have also met members of staff and clinicians to hear about some of the cutting-edge research and treatments they are working on. My visit to GOSH further emphasised the importance of this Bill. One cannot go there and fail to be touched by the work that goes on there, the commitment, the dedication and the inspiration—it is truly amazing, as indeed is the work of all our NHS hospitals and charities.

As we all know, the work and influence of Great Ormond Street children’s hospital stretches way beyond Greater London, which is why so many Members are in the Chamber to support and watch the progress of this Bill. In the financial year 2014-15, the GOSH charity raised a staggering £80,981,000, an increase on the previous year’s figure.

In November, I am sure that avid newspaper readers will have noticed that The Independent and the Evening Standard launched their Gift to GOSH Christmas appeal, attracting celebrity backing as well as a pledge from my right hon. Friend the Chancellor of the Exchequer to match donations pound for pound from the Treasury with up to £1.5 million. I am fortunate enough to have an update from Great Ormond Street hospital, which tells me that to date £2.7 million has been raised as a result of that appeal. That reflects the warmth felt by the British public towards Great Ormond Street, as well as their generosity. The campaign still has not ended—it runs until 14 February—so who knows what the final total will be. Those funds are going to support things such as paediatric research and a new specialist unit for children with heart failure.

One of the most generous donors over the years has been, of course, J. M. Barrie, whose bequest of the royalties from “Peter Pan” is one of the reasons we are here today. It is amazing that even today, 79 years after the death of Barrie, the bequest is still a crucial source of income to the charity, which demonstrates that “Peter Pan” remains a firm favourite of us all. I must confess that I watched it over Christmas and, as one might expect, the book has had a permanent place on my desk for number of months. It is probably in my handbag in the Chamber today.

By supporting the Bill today, I believe that we are all doing a little bit to help the work of Great Ormond Street Hospital Children’s Charity by securing the J. M. Barrie income stream for the new independent charity. Without this Bill, it would be unable fully to complete its conversion to independent charity status. Without it, I believe that there could be risks to legacies to the charity, and I would not wish to see that happen. It also creates further complications, because operating two charities side-by-side requires a duplication of governance, separate accounts and, potentially, duplicate returns to the Charity Commission. The Bill is not just needed, it is wanted, and Great Ormond Street Hospital Children’s Charity has confirmed this. It is also supported by the chair of the hospital trust, Baroness Blackstone, who I must also thank for her support, and the charity’s chair of trustees.

To summarise my Bill, it has received support from Members on both sides of the Chamber, for which I am grateful, from Great Ormond Street Hospital Children’s Charity and from the Association of NHS Charities. It delivers on commitments that followed a Department of Health review and consultation on the governance of NHS charities, whereby charities were given the opportunity to seek greater independence under the sole regulation of the Charity Commission and the Secretary of State’s powers to appoint trustees were no longer necessary. It paves the way for sensible housekeeping.

We listened to some interesting amendments today that enabled further scrutiny of the Bill, for which I am grateful. I hope that this Bill, which I have believed in from the outset, does not end up in Neverland but heads out of this Chamber across Central Lobby to land safely on the Red Benches of the other place to continue its passage. I commend the Bill to the House.