Charities Bill [HL]

Before I get into the meat of the arguments that have been advanced in support of these two amendments, I ought first to issue a ““welcome back”” to everybody who has contributed to this Bill over the many hours, days, weeks and months that we considered it very carefully before the election. I am looking forward to conducting our very courteous discussions as we go through the Bill once again. I have listened very carefully to what has been said in advance of these two amendments. I must reiterate the   views that we set out when we gave this Bill first   consideration because there is perhaps a misunderstanding as to the Government’s intent. I aim to be as clear as I can on the status of charitable service non-public funds—the SNPFs. As the noble and gallant Lord, Lord Craig of Radley, has very carefully explained, these are charitable funds within the Armed Forces whose objects are, broadly speaking, directed to providing for the welfare of serving personnel and their dependants. By doing that, they contribute greatly to the efficiency of the Armed Forces of the Crown and thus to the defence of the realm. I said in Grand Committee on this Bill prior to the election, and I repeat, that promoting the efficiency of the Armed Forces has been a charitable purpose for a very long time; is now a charitable purpose; and under the Bill as drafted will continue to be a charitable purpose. Legally, that is absolutely secure and there is not a shred or scintilla of doubt about it. As ever, the noble Lord, Lord Hodgson of Astley Abbotts, correctly anticipated part of our argument. I explain again, for the benefit of Members of the Committee, that, as the noble Lord anticipated, the legal position is achieved by Clause 2(2), which lists the descriptions or headings of charitable purposes. There are 11 specific headings and a twelfth general heading, which is paragraph (l) Clause 2(2). One of the effects of the twelfth, general, heading is to secure the charitable status of everything that is recognised under existing charity law as a charitable purpose but that does not come under any of the preceding 11 specific headings. That answers the point made by the noble Lady, Lady Saltoun. It is achieved by Clause 2(4)(a). Needless to say, the Ministry of Defence has been carefully and fully consulted. I can advise Members of the Committee that it fully supports the Charities Bill. The Ministry believes that it is workable for service charities and is not, ultimately, unduly onerous. For that reason it is fully content with the Bill as drafted. The Bill abolishes the current presumption of public benefit enjoyed by poverty-relief, religious and educational charities, to put all charities on an equal footing for the first time in having to show public benefit to qualify for charitable status. The noble and gallant Lord’s Amendment No. 9, which I will continue to resist, would go against the grain of that   by introducing, in effect, a new presumption of public benefit. The new presumption would be for the   exclusive enjoyment of charities promoting the effectiveness and welfare of the Armed Forces. The noble and gallant Lord is effectively saying to Members of the Committee and, through your Lordships’ House, to all other types of charities, ““You have to pass the public benefit test to qualify as a charity, but Armed Forces charities ought to be a special case. They ought to be excused from ever having to pass a public benefit test””. I question whether that is right. The Government have ensured that the charitable position of service non-public funds is fully and properly protected by the Bill. There is no doubt about that. For those reasons, I invite the noble and gallant Lord to withdraw his amendment.