Economic Activity of Public Bodies (Overseas Matters) Bill: Bishop of Manchester calls for clarity on scope of bill

On 17th April 2024, the House of Lords debated the Economic Activity of Public Bodies (Overseas Matters) Bill in committee. The Bishop of Manchester spoke in support of amendment 54 to the bill, calling for the government to provide clarity over the scope of the bill in relation to charities and educational institutions:

The Lord Bishop of Manchester: My Lords, I shall speak in favour of Amendment 54, to which I have added my name. I also support the other amendments in this group. I listened carefully to the previous debate. As other noble Lords have noted, there is a strong overlap between this and the previous group.

Again as others have said, my concern is that, before we pass this Bill, we get clarity on who it covers. I declare a particular interest in that those of us on these Benches, along with other diocesan bishops of the Church of England, do carry out public functions. From time to time, these might bring an individual, in our corporate capacity as bishop of a diocese, within whatever definition of a public body or authority we might eventually land on.

In responding to an earlier group debated before the Recess, the Minister referred to the fact that mayors, police and crime commissioners—and, indeed, Government Ministers—also exercise public functions and hence fall under the scope of the Bill. However, since what these officeholders have in common is that they are elected or appointed primarily to exercise political functions, I can see the logic that maybe they should not use their investment and procurement functions in order to pursue a foreign policy in contrast to that of His Majesty’s Government. Notwithstanding the fact that some diocesan bishops are members of your Lordships’ House, is it really intended that we, along with the small charitable funds for which we are responsible in our corporate personality, should fall under the scope of the Bill? If we place those modest charitable funds with an external investment body, do we have constantly to ensure that that entity does not at any point seek to make restrictions in contravention of the Bill, by investing our money where it should not be—or not investing it where it ought to be?

Other Church institutions are at potentially greater risk of being inadvertently caught up in the scope of the Bill. Noble Lords will be familiar with the Church Commissioners, the body that manages the historic endowments of the Church of England, for the furtherance of the mission and ministry of the Church in perpetuity. It was my great privilege to chair the commissioners’ board, until the end of last year, as the delegated deputy of my most reverend friend the Archbishop of Canterbury. During my tenure, we grew our reputation, alongside our sister pensions board, as being among the world’s leading ethical and responsible investors.

As noble Lords well know, the commissioners require parliamentary approval to spend capital. Indeed, I spoke before the Easter Recess when we brought just such a measure before your Lordships’ House. What noble Lords may not know is that six state officeholders, including the Prime Minister and the Lord Speaker, are ex officio Church Commissioners, notwithstanding that the Government make no contribution to the commissioners’ coffers. Noble Lords will have noted a plea there. The ability of the commissioners’ investment team to deploy assets in furtherance of our mission objectives is not a case of anyone taking taxpayers’ money and using it to pursue their own independent foreign policy, yet, on some readings, these Church bodies may be seen as being within the scope of the Bill. Can the Minister clarify whether such bodies are indeed in scope?

Beyond the Church of England, there are many religious, charitable and other foundations—across a variety of faiths and of no faith—which perform functions in areas such as education. We have heard that referred to before. I am a grammar school boy. I benefited from a scholarship. My widowed mother could never have paid school fees. Such bodies raise and hold endowment funds for such purposes in order to enable students and pupils from less well-off backgrounds, like mine, to fully access and benefit from their services. I know that goes on because I am regularly invited to donate.

What is true of schools is even more true of the endowment funds of universities and colleges. Let us suppose that such an institution receives an offer of funds from a private philanthropist in the UK or beyond who wishes to make some stipulation as to where the endowment may or may not be invested. This is private money. Would this Bill mean that the foundation has to refuse the money, not because the country that it wishes to boycott is already on the list but because it may come on to a subsequent list at some future date?

The simplest way out of this confusion is for the Bill to contain either a schedule of the types of bodies to which it applies, as in the amendment in the name of the noble Baroness, Lady Chapman, to which I have added my name, or to use a definition that points to a well-defined list in existing legislation. The noble Baroness, Lady Noakes, offered that earlier today in the previous group. The advantage of requests under the Freedom of Information Act is that they are ubiquitous and long-standing. I know because I get them all the time and turn them down because they do not apply to me. As we have already heard, this means that most institutions are now very clear as to whether FoI applies to them. The same cannot be said for other definitions, even those contained in the Human Rights Act. So, in responding to this debate, can the Minister let us know how His Majesty’s Government are going to provide the clarity over scope that will be essential for this Bill to become a workable Act?

Hansard