It is clear from the intervention by the hon. Member for Workington (Mr. Campbell-Savours) that my hon. Friend the Member for Reigate (Sir G. Gardiner) has raised a very important subject which is likely to be of considerable interest to hon. Members.

The system of charities that has grown up in this country is unique and much prized. It is quite easy for us to forget that many of the major services that we take for granted today in health, education and social welfare, were built on foundations laid down over generations first by the Church and later by concerned individuals who gave of their time and resources not because they were asked to do so, but voluntarily and for the good of their communities.

As we have heard, charities now engage in an immense range of activities from running the village hall to caring for the disadvantaged and protecting the environment. They operate at all levels, from the small local village through to the international arena. Some survive with virtually no resources, other than people's goodwill. Others are well endowed. Some are very small and some are, in effect, multi-million-pound international corporations.

My hon. Friend is right to say that charitable status carries with it many advantages. The tax reliefs provided by the Government are considerable, as is the contribution made by both central and local government towards funding particular charities or charitable projects. He is right, too, to say that, if public confidence in our charities is to be maintained, proper safeguards must exist to ensure that the money donated for charitable purposes is used for those purposes and is not misapplied—in any way or at any time.

Over the years, a complex legal framework has been built up to ensure that charitable endowments are preserved for the benefit of the community, that trustees apply the highest standards of stewardship and that abuse is prevented. The Charity Commissioners play a key role in this, for it is they who are charged with the task of supervising and monitoring charitable activities and with investigating abuses of charitable funds.

Since the last major piece of charities legislation in 1960, the charity world has changed dramatically. As we have heard, the number and variety of charities has grown enormously, as has the amount of money donated to them. The Government believe that the system for supervising charities needs updating in the light of those developments.

The Government's proposals for legislation were published in the 1989 White Paper "Charities: A Framework for the Future". The proposals are designed specifically to enhance the Charity Commissioners' investigative and remedial powers, so that they may identify abuse or potential abuse at an early stage, and deal with it effectively. We think that these powers, together with the new duties and responsibilities to be laid on charity trustees regarding the preparation and submission of their accounts and their accountability to the public, will result in a far stronger framework for oversight and control of the charitable sector in the future. Work is well advanced on preparing the Bill, and we hope that there will be an early opportunity to introduce the legislation.

My hon. Friend has raised the question of political activities and charities. There is, of course, a crucial difference here between what is permissible for charitable and non-charitable organisations. A non-charitable body can support any causes that it wishes, provided that: it keeps within the general law. A registered charity, however, cannot have political objects; it is constrained by law to the reasonable advocacy of causes which directly further its objectives. Although it can, perfectly properly, draw attention to the problems that it encounters which affect its work, it may not go on to seek improperly to influence Governments either at home or abroad.

I am aware of concern that a few charities are overstepping the line between acceptable comment and unacceptable political campaigning and my hon. Friend has mentioned one tonight. As he is no doubt aware, in the case of Oxfam, the commissioners took action. Indeed, as he pointed out, they investigated the charity's activities, and although they recognised the value and importance of the work of the charity, and its experience in the field, they nevertheless censured its trustees for exceeding the limitations on charities and political activities. The law allows the commissioners to publish reports of their inquiries where they propose to take action on them. The commissioners' report on Oxfam was published in May. We intend to legislate to enable the commissioners to publish their reports much more freely which I believe would meet my hon. Friend's argument on this issue.

We know of nothing to suggest that charities in general experience difficulties in complying with the restrictions on political activities, but I understand that the commissioners are revising the guidelines, which they issue so that they are clearer. We think, however, that the law as it stands strikes the right balance between allowing charities to undertake reasonable activities and restraining them from acting in overtly political ways.

There is bound to be room for dispute over the application of the general guidance to particular cases, but to alter the guidance by legislation might well have the disadvantage of laying down inflexible rules instead of allowing the law to develop in the light of particular cases which may present features which cannot now be foreseen.