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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-03-22 Daily Xml
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HEALTH SERVICES CHARITABLE GIFTS BILL

Committee Stage

In committee.

Clause 1.

The Hon. G.E. GAGO: I have responses to questions asked by the Hon. John Darley, but I am happy to deal with these at the appropriate amendment. It might be more timely to do it that way. There are some more general ones; I have further instructions and advice. On 24 February the Hon. John Darley asked some questions which were of a general nature, and I agreed to provide answers to those.

I have since been advised that the gifts to the Royal Adelaide Hospital vested in the commissioner under the Public Charities Funds Act 1935 will be vested in the board under the transitional provisions of the Health Services Charitable Gifts Bill and become part of its charitable assets. As is the case under the Public Charities Funds Act 1935, the government will not define the Royal Adelaide Hospital for the purposes of its proclamation as a 'public health entity' under this bill, by reference to its location or address.

After it is proclaimed as a public health entity under this new act, this status as a proclaimed public health entity will continue to have effect after the Royal Adelaide Hospital has moved to its new location, and current gifts to the Royal Adelaide Hospital will continue to be vested in the board as part of the charitable assets at its new location. The commissioners are not aware of any gift for the Royal Adelaide Hospital that would become part of the charitable assets of the board that expressly requires it to be used only at the Royal Adelaide Hospital at its current location.

Decisions made by the board about the application of gifts to the Royal Adelaide Hospital will be subject to the requirements of section 18 regarding the intent of the donor. This section requires the board to determine, if possible, the intent of the donor and, to the extent practicable, give effect to that intent. A gift to the Royal Adelaide Hospital made while the Royal Adelaide Hospital is located at its current premises will be applied to the Royal Adelaide Hospital after it moves to its new premises, and the board, in considering such a gift, must have regard to the matters set out in section 18.

A further question was asked in respect of fundraising donations where the target amount is not raised. Donations that are prescribed gifts to a public health entity under the bill would vest in the Health Services Charitable Gifts Board as part of the charitable assets. This is regardless of whether or not a fundraising effort through public donation meets its target.

Under the bill, the board has the capacity to apply the capital and earnings of a gift for the benefit of a public health entity or prescribed research body in a way it believes can best meet the intent of the donors. The removal of the provisions under the Public Charities Funds Act which restricted the use of capital means that the situation which required the Mount Gambier Hospital Hydrotherapy Pool Fund Act 2009 will not arise. If fundraising efforts fall short, the Health Services Charitable Gifts Board can make the full amount of the funds collected available to the particular health entity for an appropriate alternative purpose, having regard to the intent of the donors.

As it will be required by section 18 of the new act, in the management and/or application of the charitable assets, the board will be required to ascertain the intent of the donor or donors, as far as this can be reasonably done and, as far is reasonably practical, apply the funds raised to a purpose the board considers most likely to achieve the intent of the fundraising. It will be up to the board, on application from the hospital, to make the funds collected available.

In making its decision, it is expected that the board will consult, like the commissioner has done in the past, with the relevant public health entity and, if appropriate, consult with the committee it will establish under the new act to advise on the application of funds for clinical equipment and/or research. The board, therefore, cannot act without due regard to the intended purposes, nor wilfully, in how it applies funds that are raised as part of some fundraising ventures that are now vested in it.

Clause passed.

Clauses 2 to 14 passed.

Progress reported; committee to sit again.

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