§ Lord Denningasked Her Majesty's Government:
Whether following the last sentence of their answer of 26th June (H.L. Deb., col. 1607), the jurisdiction of the Charity Commissioners under Section 18 of the Charities Act 1960 to make schemes in respect of a local charity was limited to the area of benefit prescribed in the trust deed and did not extend to the whole diocese; and whether there were many schools sold without any such schemes at all.
The Minister of State, Home Office (Earl Ferrers)In discharging their jurisdiction under Section 18 of the Charities Act 1960 to establish schemes for closed local charity schools, the Charity Commissioners apply the cy pres doctrine of charity law. This enables them to alter a charity's trusts or purposes, where these have wholly or partially failed, so that the charity's property can in future be effectively applied in a manner consistent with its original trusts. The principles under which the commissioners exercise this jurisdiction are set out in paragraphs 73 to 75 of their report for 1989. Whether a particular scheme should extend the area of benefit of a charity beyond that prescribed in the trust deed is a matter which can only be decided in each case after considering the provisions of the charity's deed and the circumstances surrounding the initial gift, the extent of its property, its place in the local community and the community's needs. It is not possible to say how many schools may have been sold without any scheme of the commissioners.