The hon. Member for Fife, West (Mr. William Hamilton) has drawn attention to an important problem, but he has not made out a convincing case for his particular solution of a Royal Commission. He has taken more than 20 minutes, but it was not until the last few minutes that he mentioned the Royal Commission. He does not help his case by the kind of exaggerated language he is apt to use.

I acknowledge that there are anomalies in the present situation, and the Government are ready to consider any constructive suggestions from whatever quarter for improving it. I want to put the whole matter into perspective, I know that there is public concern, and I shall sketch the whole position as fairly as I may with the safeguards as well as the snags in the present arrangements.

Charity has always played a large part in the life and organisation of this country. Many millions of pounds are given to charity every year and at once I acknowledge, on behalf of the Home Secretary, the House and the country, how much we all owe to those who give unstintingly of time and resources to the demands of charity. I say this with particular feeling at Christmas time. The country would, indeed, be the poorer without this ceaseless effort. We owe everyone concerned a great debt of gratitude.

With charity, as in many other spheres, this is a time of transition and adaptation. Charity once was the main plank of the provision of welfare in Britain, but subsequently it has had to adjust to a subsidiary rôle. Also, there have been new methods of fund raising which have emphasised the professional element in the organisation of charitable work. However, with the generous response from so many people, we are rightly concerned that the administration of charities should be effective and seen to be effective. Although anxieties are occasionally expressed about particular charities—some of them mentioned today—the general absence of complaint suggests that the Majority of them are well and efficiently run.

I am not relying here simply on impressions, because since 1960 there have been powers to ensure that the affairs of charities can be properly scrutinised. Charities in England and Wales are accountable to the Charity Commissioners. The Secretary of State for Education and Science has responsibility at present for educational charities but will be giving this over to the Charity Commission next February. The House knows of the powers of the commissioners under Section 8 of the Charities Act 1960. There are also powers under Section 6 for inquiries to be made into the administration of charities and for action to be taken under Section 20 to protect the interests of the charity. One of the circumstances specifically mentioned in Section 20(2) as justification for action by the commissioners is a disproportionate use of funds for administration. Copies of accounts are available for anyone to inspect at the Charity Commission's office. So the powers exist in the 1960 Act to enable the commission, using them properly, to look into any case which may be brought to its attention.

There has been concern, I know, about administrative costs—whether the money donated from the public to particular charities is properly used. This has been investigated in the special survey by Money Which?. I do not want to be drawn into a discussion of particular cases, especially with time being short, because I want to make the Government's position clear over the whole field. The Home Secretary has no powers directly in relation to individual charities, nor any direct responsibility in the day-to-day work of the commissioners or their handling of individual cases. Points at issue can be finally resolved only by the courts.

An hon. Member or anyone else who has specific information leading him to think that the administrative expenses of a particular charity are excessive should forward details to the Charity Commissioners, who will then carefully investigate all the circumstances. I refer the hon. Member and the House to paragraph 78 of the 1972 report of the commissioners, in which they dwell on this very point of administrative costs, particularly in relation to the newer charities. This is very much in their minds. But one cannot lay down any rule of thumb about administrative costs. It is bound to vary from charity to charity according to their purposes and the way in which they operate.

Another point of public concern about charities is the scrutiny of accounts, particularly when a charity is new and the commissioners may have some doubts about the way in which it is being administered. I would draw the attention of the hon. Member to the new regional office which the commission has established in Liverpool. Through that office, its examination of accounts is now wider than it used to be.

As for the definition and the hon. Members' remarks about the law being a nightmarish jungle, it is easy to criticise, but there have been many attempts to find a better definition. Although it gives rise to some anomalies and difficulties, we should remember that it also provides flexibility, and it means that the frontiers of charity can change in response to changing social needs. In looking for a new definition, we should remember that.

I have tried to summarise the present position and the safeguards. I know that there is some public dissatisfaction with some aspects of the charity world today. Looking ahead, there is to be a conference in January organised by the National Council of Social Service, whose initiative here I very much welcome. The Government will be interested in any practical suggestions that may be made at that conference or which may be put forward by any individuals or groups who are specially concerned with charities.

We shall, of course, consider them carefully, whether they relate to the law itself or to its administration. This is the first law of its type for many years. It may have its disadvantages, but at least the law of 1960 is on the statute book. Before we try to change the law, we should make full use of it and of the machinery that it provides. This is the area to which I personally would look mainly.

The Royal Commission for which the hon. Member has been pressing does not seem to us to be called for at present. I want to repeat what I implied at the beginning—that doubts or criticisms about particular charities or particular aspects of the present system should not cloud our appreciation of the generosity of people who support charities or of the work that charities do. The charity is, and will remain, a valuable and heartening part of our national life.