Charities Bill [HL]

My Lords, I am delighted to respond to this amendment because, although I ultimately have to resist it, it is one that has usefully focused on an important part of the Charity Commission’s work. We certainly agree with the principle and the spirit behind the amendment; that is, that charities should be using their resources in the most effective way. For that reason, we have continued this objective from the Charities Act 1993, which states on the first page that the commission must promote,"““the effective use of charitable resources””." We do not think the amendment is necessary. The commission is not in control of charitable resources; the trustees command them. It would therefore be inappropriate to require the commission to increase the effective use of charitable resources. I am not quite sure how they would achieve that objective. We cannot think of a way in which the commission’s performance against this laudable objective could be properly measured. While I can certainly understand why the noble Baroness, Lady Pitkeathley, has moved this amendment, and why it has received such warm support, I cannot ultimately accept it on behalf of the Government. It is worth directing our attention in considering this matter to Clause 7(2), at the top of page 7 of the Bill, which gives the commission a statutory duty to act in a way compatible with the encouragement of all forms of charitable giving. This was added to the Bill as a product of the debate which I think the noble Baroness contributed to, before the general election, in Grand Committee. We thought it would be a useful addition to the Bill, so we feel we have already met the spirit behind the amendment. The noble Baroness also made quite understandable reference to the burden of regulation. We certainly accept the Joint Committee recommendation for a review of the burden of regulation. We are developing proposals for such a review to be carried out by the Better Regulation Task Force, as I have probably made clear before. We understand the force of argument behind the need, as the noble Lord, Lord Hodgson of Astley Abbots, has reminded us on a number of occasions, to minimise the burden of regulation at all times. It is certainly our intention to ensure that we fulfil that—the task could be carried out by the Better Regulation Task Force. I know that is a slightly tangential subject. We endorse the spirit of the amendment, but have probably already met it in the way we have framed the legislation brought forward in that new amendment.