CODE OF PRACTICE (Hansard, 16 October 1990)

§ Dr. A. Godman
I beg to move, That the clause be read a Second time.
My code of conduct is designed with the specific aim of giving guidance to those seeking to set up charities, as well as advising them of the need to adhere to the complicated rules and regulations that are outlined in part I. My hon. Friend the Member for Glasgow, Garscadden (Mr. Dewar) said a few minutes ago that we are faced by an extraordinarily complicated structure of rules and regulations for charities. He is right.
In part I, for example, the topics range from clause 1, Information as to recognised charities", to: Duty to keep accounting records", Annual accounts and report". and the role of the Lord Advocate in this scheme of things, which is dealt with in clause 5. The role of the Court of Session is outlined in clause 6. Clause 7 is concerned with the disqualification of persons concerned in the management of such bodies. We all know that, occasionally, the odd character happens on a charity and exploits it in his own nefarious interests. There is also an important clause, clause 9, concerned with small charities.
There is a need for a code of conduct for small charities. I remind the Minister and the House of the Industrial Relations Act 1971. I think that it came into force on 28 February 1972, as you would know, Madam Deputy Speaker. That labour law was dreadful in itself, but its one redeeming feature was the code of practice that was introduced with it. It was aimed largely at small companies that were unfamiliar with the formal processes of collective 1088 bargaining. I put it to the Minister that small charities are in a position with this Bill analogous to that of the small firms confronted with the code of practice in 1972. I hope that this provision survives longer than the Industrial Relations Act 1971 did.
There is an important principle here. I was not in Parliament at that time. Although I was opposed to the Industrial Relations Act 1971, I welcomed the code of practice because it was a fine little document in terms of grievance and disciplinary procedures. I would argue that this legislation concerning charities—especially small charities—needs such a fine little document.
Some people may say that there is no need for such a code of practice. I can perhaps understand the reason for such reservations, especially, for example, in respect of the fine charity with which I am involved, which was mentioned just now by my hon. Friend the Member for Falkirk, East (Mr. Ewing). Like many large and long-established charities, the Royal National Lifeboat Institution has a strict code of conduct for its various component bodies and strict rules governing its collections and other charitable activities. But often small charities are formed when a number of people come together to give sustenance to those in distress.
For example, in my constituency, following the tragic death of a couple who died in horrible circumstances in a house fire in Port Glasgow, a number of neighbours came together with the object of raising money to provide the young daughter with sustenance and comfort. In fishing communities, in particular, people come together in the immediate aftermath of a tragedy to raise money for the dependants of those who have been lost; that is also not an unfamiliar experience in mining communities.
I promise to be brief, Madam Deputy Speaker. I am anxious to hurry along to the new clauses dealing with children giving evidence in criminal proceedings. In passing, let me say that I am delighted with the fine, generous comments that the Minister made when he referred to those new clauses.
We need to give guidance to small charities, because such bodies may not have the means to obtain advice from lawyers or similar professionals. A code of practice could, I think, give comfort to the individuals involved—particularly in regard to their onerous responsibilities vis-a-vis the Lord Advocate. Some of those responsibilities are entirely right and proper, but the Government must nevertheless give guidance to such bodies. I look forward to a positive response from the Minister to the new clause.

§ Lord James Douglas-Hamilton
The new clause tabled by the hon. Member for Greenock and Port Glasgow (Dr. Godman) would provide guidance to charities on how to comply with the requirements of part I of the Bill. The hon. Gentleman proposes that that should be achieved by introduction of a code of practice that would require approval by resolution of both Houses of Parliament. He also proposes that such a code should not be legally binding but that where a person has failed to observe any provisions of the Bill it should be admissible in court proceedings and could be taken account of by the court in its determination.
I sympathise with the purpose and aim of the hon. Gentleman, which is essentially to provide guidance to charities on how to comply with the requirements laid upon them by part I. I do not, however, believe that the means of providing that guidance should be as proposed in 1089 the new clause. I do not consider it necessary to provide a code of practice when adequate provisions are set out in the primary and secondary legislation.
I also have some doubts about asking the court, as the new clause provides, to have regard to the code of practice in determining a question that will already have been covered in the primary legislation. That strikes me as likely to frustrate, rather than assist, determination by the courts. However, I certainly accept that the charities should have guidance on how to comply with the requirements of part I and I assure the hon. Gentleman that full guidance on that will be provided by the Scottish Home and Health Department by means of publicity, and also by circulars to recognised bodies.
I should also mention the fact that the Scottish Council for Voluntary Organisations already provides helpful guidance to charities and it will, no doubt, continue to do so. Now that he has been given that assurance, I hope that the hon. Gentleman will not seek to press the new clause.

§ Dr. Godman
The Minister is an honourable man and I am perfectly willing to accept his assurance that the provisions will be publicised. On the basis of that assurance, I beg to ask leave to withdraw the motion.