Registered Charities: Accountability (Hansard, 10 May 1995)

§ The Minister of State, Home Office (Baroness Blatch)
My Lords, when the final provisions of the Charities Act 1993 are brought into operation at the end of this year, the Charity Commission, as part of carrying out its statutory function of promoting the effective use of charitable resources, will have a full range of powers to register, monitor and investigate charities and so ensure their accountability. Decisions in individual cases are the responsibility of the Charity Commissioners.

§ The Countess of Mar
My Lords, I thank the noble Baroness for that reply. Is she aware of the activities of an organisation—formerly the Campaign against Health Fraud and now called Health Watch—which has been systematically destroying the reputations of people working in complementary medicine, particularly those in nutritional medicine? I give as examples the well-known Bristol Cancer Help Centre, Larkhall Natural Health, the British Society for Nutritional Medicine and the Breakspear Hospital. The information which Health Watch has provided to the media has been subsequently proved false, but it is too late for such organisations to regain their reputations. These organisations are helping a lot of people whom the National Health Service cannot help. Can the noble Baroness say what recourse the organisations and individuals concerned can take in order to regain their reputations?

§ Baroness Blatch
My Lords, these are matters for the Charity Commission. The noble Countess is right in saying that Health Watch has been subject to 67 investigation, but the allegation that it was acting as a political pressure group was not supported by evidence. There was another allegation that it was paying money to a trustee. That has been properly addressed by the organisation. If any organisation uses its funds in order to campaign against another organisation on the basis of flawed research, the Charity Commission will be concerned.

§ Baroness Rawlings
My Lords, what plans do the Government have for the Charity Commission to support charities as well as regulating them when they are in trouble?

§ Baroness Blatch
My Lords, the Government have gone a very long way towards providing a framework within which the charity sector can practise. It is a question of accountability and a light touch on the very small charities. The powers of investigation are much heavier as regards the larger charities. Some of that activity has already been implemented, but much has yet to be introduced. The Charity Commission is doing a great deal to improve its information and advice services to charities. It is working very well.

§ Lord Hooson
My Lords, is the noble Baroness satisfied that the Charity Commissioners have the power to control, in particular, the fund-raising charities who, in some cases, spend most of their money on their own administration and propaganda rather than on the objects of their charity? Is the noble Baroness satisfied that the controls are there?

§ Baroness Blatch
My Lords, as a result of the 1993 Act, I am absolutely satisfied that the powers are there. The Charity Commissioners have powers to institute inquiries and to suspend or remove trustees. They have powers to require information to be provided by a charitable organisation. At the end of the day they have powers to make an order to protect charitable property. The powers extend to simple advice and information right through to legal remedies to obtain restitution.

§ Lord Williams of Mostyn
My Lords, does the Minister agree that Sections 8, 9 and 11 of the Charities Act to which she has referred give enormous powers to the Charity Commissioners requiring the furnishing of information, failing which a criminal offence is committed? Furthermore, is not the answer to the Question asked by the noble Countess, Lady Mar, that if an individual or organisation feels defamed it has ordinary remedies under the law?

§ Baroness Blatch
My Lords, the noble Lord is right. At the end of the day the decisions and orders of the Charity Commissioners may be appealed to the High Court.

§ Viscount Caldecote
My Lords, how soon after the end of the financial year do charities have to issue their report and annual accounts? Is that period enforced by the Charity Commissioners?

§ Baroness Blatch
My Lords, that particular provision in the Act is not yet implemented, but is out for consultation. The draft regulations will give the answer to my noble friend.

§ Lord Dubs
My Lords, is the Minister satisfied that the Charity Commission has adequate resources to do the work which she has described as its responsibility?

§ Baroness Blatch
My Lords, yes, I am satisfied that it has the resources. I am also pleased to report to the House that enormous efficiency measures are being undertaken by the Charity Commissioners. They include the introduction of technology which will help enormously in managing their particular role for charities.

§ The Countess of Mar
My Lords, does the noble Baroness appreciate that many of the people who have been damaged by Health Watch are not very well off? Does she approve of the fact that that organisation is supported by the Wellcome Foundation and Private Patients Plan, among other pharmaceutical and insurance companies? Is the Minister aware that the ordinary person cannot fight the money of these big organisations?

§ Baroness Blatch
My Lords, if there is a suggestion that that or any other organisation is acting improperly and inconsistently with its aims and objectives, that must be a matter for the Charity Commission.