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Charity Law

Volume 400: debated on Tuesday 4 March 2003

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To ask the Secretary of State for the Home Department what action he has taken to implement the recommendations in the Strategy Unit report Private Action, Public Benefit; and what the timetable is for drawing up a Charities Bill to implement the recommendations on charity law. [99650]

The consultation period for the Strategy Unit report has now ended and over 1,100 responses have been received, which Home Office officials are now analysing.

Where recommendations have commanded general support and do not require legislation, we aim to move as quickly as possible to implement them, although some may first need further policy development work.

However, legislation would be needed to give effect to many of the recommendations; including the areas relating to the introduction of the Community Interest Company, the changes to Industrial and Provident Society legislation and changes to charity and fundraising law.

Initial analysis of the responses to the Strategy Unit report indicates support for the Community Interest Company concept. The Department of Trade and Industry, the Home Office and other interested Departments are now considering the timing and content of a possible technical consultation on the concept, which would be necessary before legislation could be introduced.

The Treasury are currently examining the responses received to the proposals for changes to Industrial and Provident Society legislation and considering options for taking forward the recommendations. However, my hon. Friend the Financial Secretary to the Treasury (Ruth Kelly) made it clear at the Second Reading of the Co-operatives and Community Benefit Societies Bill, (private members Bill sponsored by my hon. Friend, Member for South Derbyshire (Mark Todd)) that it is Government's intention to enact an asset lock-in' regime, following further examination and consultation, if it continues to appear sensible and feasible to do so. Such a regime was one recommendation of the Strategy Unit report. The Treasury are working with Mark Todd to see how they can facilitate the introduction of such a regime through his Bill.

Further policy development work will need to be done in some areas before the Home Office would be in a position to produce a draft Charities Bill, which my right hon. Friend the Home Secretary recently promised to publish as soon as possible. Currently Home Office Officials are liasing with the Department for Transport and the Treasury on their respective areas of responsibility.