Niall Collins (Limerick, Fianna Fail) | Oireachtas source

I am sharing time with Deputy Éamon Ó Cuív.

I welcome the opportunity to speak on this timely Bill which has spurred the Government into action on an important issue. Across the country thousands of volunteers give selflessly of their time and efforts to fund-raise for a worthy cause. Regardless of whether it is a marathon run or a head shave, the Irish people have a remarkable spirit of generosity that sustains the charity sector. Even in the difficult economic period through which they have suffered in recent years, ordinary people have been willing to give whatever they can to help a good cause. Their immense commitment to helping others through whatever means they have available is testament to the strength of Irish society. The revelations of grossly inflated pay levels and lump sums at the CRC are all the more dispiriting against the backdrop of ordinary people's generosity. The litany of unwarranted payments deeply shook the confidence of the volunteer army that sustains the charity sector. There is something rotten in the culture of a body that allows such greed to fester and grow. The issue cannot be allowed to slip into petty political point-scoring, as it is much more important than that. Members must move to address the fundamental problems with the corporate governance of these bodies. A failure to confront these issues will undermine fatally the confidence of the public in the good work that they do. This will devastate the capacity of the sector to undertake the vital fund-raising that keeps them going.

It is important that not all bodies are tarred with the same brush. I recognise the charity sector has taken individual steps towards enhancing corporate governance. The steps taken by the Minister, Deputy Alan Shatter, towards initiating the 2009 Act mark something for which the industry has been calling actively since it was passed by the Oireachtas. It is not true, as has been stated, that the Minister has done nothing in this regard since taking office. I raised this issue with the Taoiseach on the Order of Business on 18 December last and the Minister replied to me in the positive to the effect that consultation had taken place and that sections 1, 2, 4, 5, 10 and 90 had already been commenced. A number of charities have voluntarily submitted themselves to the standards laid out in the British legislation and furthering the introduction of a regulator here will ensure this will become legal practice in Ireland.

When Fianna Fáil passed the Charities Act in 2009, it represented a milestone in the development of the regulation of the sector. Its aims are all the more important now, in the light of the shocking information on the activities of the CRC. The purpose of the Charities Act is to reform charities law to ensure greater accountability, protect against abuse of charitable status and enhance public trust and confidence in charities, with increased transparency in the sector. Key aspects of the Act provide for a definition of "charitable purposes" for the first time in primary legislation. It also provides for the creation of a new Charities Regulatory Authority to secure compliance by charities with their legal obligations and encourage better administration of charities. In addition, it provides for a register of charities, in which all charities operating in the State must register, and the submission of annual activity reports by charities to the new authority. It updates the law relating to fund-raising, particularly in respect of collections by way of direct debits and similar non-cash methods, as well as providing for the creation of a charity appeals tribunal and the provision of consultative panels to assist the authority in its work and ensure effective consultation with stakeholders. This marks a key moment in the transformation of how charities are regulated in Ireland. It also recognises the dramatic development of the sector and the scale of the work it does across innumerable spheres of Irish life, both at home and abroad. Putting it on a sound legislative basis will sustain the sector in the coming decades as it grows and evolves alongside the challenges it confronts. The Act will also enable volunteers and members of the public and ensure their hard-earned money will be spent in the most effective manner and not siphoned off or wasted due to grossly inadequate governance.

The initiation of the Act will have a significant impact on the internal workings of the sector. Members must ensure they are adequately prepared to deal with the new raft of paperwork they will be expected to process. One does not wish for a situation where honest charities doing good work in the community will suffer unduly owing to the regulatory burden. Red tape should not be allowed to strangle the work of the sector. A number of aspects of the Act are worth dealing with individually and teasing out as the charity regulator gets going. All charities registered with the regulator will be obliged to submit an annual activity report. The Minister should move further to consult the sector before deciding on what will be required of charities in this annual report. This will be a useful mechanism to outline the level of work done by each charity and as a comparison between bodies. Most charities already submit financial accounts, but the format and process by which this is done will depend on how its organisation is set up legally. This will be a vital part of securing public trust in the system and setting up a clear line of accountability for the expenditure of charitable moneys. Transforming how charities operate and establishing clear new lines of accountability will boost the strength of charities. Essentially, the Act enshrines the principle of openness that many charities already have embraced fully.

Implementation of the Act ran into the strong headwinds of the economic downturn. The Government has consistently cited costs as an impediment to the establishment of the body. The charities regulator in Northern Ireland costs an estimated £800,000 per annum. I understand charities will be expected to pay an annual registration fee to fund the new regulator. The annual fee will range from between €75 and €500, depending on the scale of the charity involved. This also will leave a significant gap to be bridged by the taxpayer to fund the 20 staff strong body. What level of Exchequer funding subvention will be provided to assist in the creation and ongoing running costs of the body? Has the Minister specified the costs involved with the new regulator and its funding mechanisms?

Recent events have underlined the importance in the long term of underpinning public trust in the charity sector. The financial pressure being felt by the sector has compounded its need for reliable fund-raising to be undertaken. Transparency, accountability and regulation are absolutely integral parts of the long-term sustainability of any organisation. The vital role public trust plays in driving on the charity sector makes it all the more important in that sector. The new regulator will require a robust and committed board to fulfil its mandate. This means drawing from personnel who blend experience of the charity sector with an appreciation of the needs of the public. The appointment process cannot be allowed, as have so many others under the current Administration, to be dominated by cronyism, with political hacks stuffing the ranks. The open public appointment process must be more than a mere fig leaf thrown in the direction of transparency. A regulator set up to promote transparency must itself be transparent. The regulator must be beyond reproach to achieve the objective of restoring public trust which has been battered by the debacle at the CRC.

The open and transparent process should be started as soon as possible to put the body on a solid footing and enable it to pursue its objectives straight away. We should not let the actions of a negligent board and the cynical acts of a few cast a dark shadow on the bright story of charity work in Ireland.

Full implementation of the Charities Act 2009 will represent a decisive step in recognising the central part good governance has in the running of a burgeoning sector. It gives a strong legal basis for the spirit of transparency that must underpin the entire area. Members must draw from the shocking lessons of the CRC scandal that has enraged so many people across the country. Full implementation of the Act sends a strong and unmistakable message that good governance is the standard operational procedure for the parties involved. I look forward to the swift enactment of the provisions of the 2009 Act, both the letter and spirit, to assure those volunteers and ordinary people across the country that their efforts are not wasted.

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