The Deputy Chairperson of the Committee for Social Development (Mr Hilditch): The most overwhelming reason for progressing the Charities Bill is our need for legislation to modernise charity law. The Government need to create a modern legal framework that will support and encourage a vibrant and diverse third sector — a sector that plays such an important role in the lives of people in Northern Ireland. It provides vital services, strengthens communities and is often an advocate for the marginalised in our society.

The third sector has, for some considerable time, been calling for the reform of charity law. It wants registration, regulation, supervision and support. It is to be hoped that this Bill will provide all those things. The Bill also presents an opportunity for the Assembly to give legislative recognition to the important role that charities play in Northern Ireland. It is estimated that the Province’s third sector has an annual turnover of £614 million and that it employs almost 4•5% of Northern Ireland’s workforce. That should give Members some idea of the extent of the voluntary and community sector’s contribution to society in Northern Ireland, and, indeed, to its economy.

I do not wish to go into too much detail on the Bill’s specific provisions. As Members will be aware, the Committee for Social Development will conduct its own detailed scrutiny. It will form a view on the Bill’s specifics in due course. However, the Committee believes that the Bill confirms the Government’s commitment to the growing importance of charities in our society. I hope that the legislation will allow charities to keep pace with the modern social landscape, while ensuring that they are accountable to the public.

The Bill provides a framework within which charities can thrive and continue to provide an excellent service to society by: providing statutory definitions of “charity” and “charitable purpose”; establishing a charity commission for Northern Ireland and a charity tribunal for Northern Ireland; creating a register of charities for Northern Ireland; introducing the charitable incorporated organisations, which is a new form of charitable body; and setting out new rules on fund-raising and collections.

To put the definition of “charity” and “charitable purpose” on a statutory footing is of utmost importance. At present, there is no statutory definition of a charity — the legal concept has been developed through case law. The public must be confident that all charities have been able to demonstrate that they provide public benefit. The results of the Department for Social Development’s consultation on the draft legislation in 2006 included suggestions for what any definition of a charity should include. That is something that the Committee will want to consider.

The establishment of a charity commission and a charity tribunal for Northern Ireland is most welcome. The commission will operate a register of charities, and it will perform regulatory and advisory functions. It will also allow charities to demonstrate their legitimacy and effectiveness and assure the public that, adminis¬tratively, those organisations are sound.

The charity tribunal will hear appeals against some types of decisions that the commission will make. I imagine that the Committee will want to consider the cost and length of the appeals process when looking at clause 14, because we do not want the process to be onerous and inflexible for smaller charities.

There is currently no legislation for charities in Northern Ireland. However, the Bill provides for the establishment of a publicly accessible register of charities. The process of registration will require charities to provide specific documents and information to the commission. In considering that process, the Committee will wish to ensure an adequate balance between the need for accountability and transparency, and the need to reduce the regulatory burden about which charities sometimes complain.

It must be remembered that the legislation will apply to organisations of varying sizes. Some of the smaller organisations have no paid staff, and proportionality is essential.

The Bill provides a replacement for the current licensing system for street and house-to-house collections. The proposed new system to govern the collection of money for charity will ensure strict regulation so that the public, as well as the charity and the collectors, are protected.

At present, the activities of professional fund-raisers are not closely regulated in Northern Ireland. The Bill makes provision for the introduction of controls on fund-raising for charities that use professional fund-raisers and commercial concerns. Professional fund-raisers must be more accountable to the charities on whose behalf they collect.

The Committee is grateful to officials from the Department for Social Development for their briefing on the principles and detail of the Bill, and thanks them. The Committee looks forward to scrutinising the Bill in detail and, as I said earlier, I do not wish to talk about the specifics of each provision in advance of that scrutiny. It is a large and highly complex Bill, and scrutiny will require much time and effort, not only from the Committee but from the Department and from those organisations and individuals who wish to provide evidence, whether oral or written.

Looking ahead, the success of the proposed legislation, which provides only a broad framework, will depend on the introduction of further regulations and guidance. That, too, will be given careful consideration by the Committee.