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Lord Maclennan of Rogart: My Lords, I, too, welcome the very full and interesting exposition of the two orders that we have just heard from the Minister. The subject of the Gaelic language will enable a substantial debate to be held. I express considerable interest in the progress of Gaelic media, not least in the indication the Minister gave of the possible digital service and the timing of the consideration. The operative effect of this order, as I understand it, is quite limited. It is simply to ensure that the new Gaelic language bord can take over from its predecessor the responsibility of nominating a member to the Gaelic Media Service. That seems to be a sensible provision beyond contention.
The background to the draft Charities and Trustee Investment (Scotland) Act 2005 (Consequential Provisions and Modifications) Order—the second of the two orders which the Minister helpfully explained—is a major overhaul of charity law and regulation in Scotland. I declare an interest as a director of at least four charitable bodies in Scotland, which will be affected by the legislation. Once again, the policy underlying this emanates from the Scottish review of the legislation; it is far-reaching, important and welcome. The effect of the order is quite limited, however. It relates to the establishment of the Office of the Scottish Charity Regulator, which is a keystone required to give effect to these provisions. I welcome that and I am grateful to the Minister for extensively filling in the background, which will be a useful record.
Baroness Carnegy of Lour: My Lords, I wonder if I may briefly ask the Minister a question about the charities order. Before this Holyrood legislation of 2005, the regulation of Scottish charities was carried out by the Revenue, which did it with a very light touch. My noble friend on the Front Bench said that there seemed to be a need for tighter legislation. I am not sure whether all charities in Scotland agree with that, but it has happened. Now the powerful Office of the Scottish Charity Regulator has been set up, there is a very different arrangement. What precisely will the relationship be between the new regulator and the Revenue? In particular, Article 3(1) states:
"For the purpose of enabling or assisting OSCR to exercise its functions, the Commissioners may disclose to OSCR"—
that is the commissioners of the Inland Revenue—
"any information concerning a recognised body which they have acquired in the performance of their functions".
Does the information that the Revenue may disclose to the new regulator relate only to information that it had before the new legislation took effect—when the Revenue was responsible for the regulation—or is there an ongoing arrangement whereby from now on the new regulator may seek information from the Revenue? We are told that the Revenue "may", but
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does not have to, disclose information. What criteria will it use in deciding what information to disclose? Those are relevant factors. We do not know how the new body will function; it will depend very much on who is on that body and how they decide to operate the new Act. The relationship with the Revenue will matter, so I would be grateful if the Minister could enlarge on it.
Lord Evans of Temple Guiting: My Lords, I am grateful to noble Lords for their general welcome of the orders. I am particularly grateful to the noble Duke, the Duke of Montrose, for filling in many interesting things about the progress of the Gaelic language plans in Scotland. I hope that I can deal with noble Lords' questions to their satisfaction.
The noble Duke asked whether the Government were happy with the progress that had made in respect of their commitment to the EU on the promotion of regional and minority languages. The order does not relate directly to the Government's commitment to that charter; however, the UK Government attach great importance to the protection and promotion of regional or minority languages. The Government view fulfilment of charter obligations as part of the core Council of Europe objectives to ensure the protection of minorities as part of promoting human rights, the rule of law and pluralist democracy across the Continent. Noble Lords may like to note that the Council of Europe's committee of experts is undertaking an on-the-spot visit to the UK. A visit is expected to Edinburgh, scheduled for 30 January this year. We expect the committee of experts to use the visit to discuss with local and central government and Gaelic and Scots groups the implementation of the charter in Scotland. We are very pleased with progress. I hope that that pleasure is shared.
The noble Duke asked what made a charity liable to be regulated by OSCR in Scotland rather than on a UK basis and whether it needed to register in England and Scotland. Any charity that operates in Scotland will be subject to regulation by OSCR. In the Charities and Trustee Investment (Scotland) Act, a charity is defined as operating in Scotland if it occupies land or premises in Scotland or carries out activities in an office, shop or similar premises in Scotland. A charity cannot be regulated on a UK basis because the regulation of charities in Scotland is devolved.
This may be a misunderstanding: is OSCR answerable to Scottish Ministers? No, it is accountable to the Scottish Parliament rather than to Ministers.
The noble Baroness, Lady Carnegy of Lour, asked an interesting question about the relationship between the Revenue and OSCR. There are circumstances in which proper regulation of the charity sector would be assisted by the exchange of information between OSCR and the Revenue; for example, in inquiring into the tax affairs of a charity, the Revenue may uncover issues of poor governance that cannot be addressed through tax law or where the charity's activities offend
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both tax law and charity law. The Revenue's disclosure of such information to OSCR would enable it to address failings of which it might otherwise have been unaware. The same could be true of issues uncovered by compliance activities on the part of OSCR that highlight non-conformity with tax laws. Exchanging information will also enable the Revenue to assist OSCR in the development of its information base in relation to Scottish charities.
The commissioners are not permitted to share relevant information with anyone to ensure confidentiality, unless expressly committed. The order does not compel the commissioners to share information with OSCR; rather it allows them to do so without breaking the law. The noble Baroness also asked what criteria there will be for passing information. That will be the subject of a memorandum between the Revenue and OSCR.
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Information obtained by the Revenue in the future will be able to be shared with OSCR. I hope that that answers the questions put to me.
On Question, Motion agreed to.
Charities and Trustee Investment (Scotland) Act 2005 (Consequential Provisions and Modifications) Order 2006
8.35 pm
Lord Evans of Temple Guiting: My Lords, I beg to move the Motion standing in my name on the Order Paper.
Moved, That the draft order laid before the House on 6 December 2005 be approved [13th Report from the Joint Committee].—(Lord Evans of Temple Guiting.)
On Question, Motion agreed to.
House adjourned at twenty-four minutes before nine o'clock.
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Wednesday, 25 January 2006.
Grand Committee
The Committee met at half-past three of the clock.
[The Deputy Chairman of Committees (LORD BROUGHAM AND VAUX) in the Chair.]
Compensation Bill [HL]
(Fifth Day)
Links to other Grand Committee Sittings on the Bill
The Deputy Chairman of Committees (Lord Brougham and Vaux): Welcome to the fifth day of the Grand Committee on the Compensation Bill. If there are Divisions, I ask that Members of the Committee who are speaking to stop and we will adjourn for 10 minutes.
Schedule [Claims Management Regulations]:
Lord Hunt of Wirral moved Amendment No. 78:
On Question, amendment agreed to.
[Amendments Nos. 79 to 81 not moved.]
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