Oireachtas Joint and Select Committees
Wednesday, 21 September 2022
Joint Oireachtas Committee on Social Protection
General Scheme of the Charities (Amendment) Bill 2022: Discussion
Ms ?ine Myler:
Those are two of the principal and major concerns we have outlined. With regard to the deregistration of charities, there is a chilling effect for many organisations to think that the latter could occur in the space of 24 hours. I am not for one instance suggesting that this is the type of action the Charities Regulator would take, but the proposed Bill - or the Act, if the general scheme in its current format were to be passed - would mean that the regulator could do that. I do not think it is thought through on the basis, as Deputy Ó Cathasaigh rightly said, of the sequential actions that occur from that because the curtain is pulled down and we have a situation of completely frozen assets, employment termination and services termination because as soon as the charity is deregistered it cannot carry out any business whatsoever. It is therefore no longer really a functional entity. The committee can imagine the amount of public funding that may have already been provided to that charity, the people who rely on its services and the employees working for it. As a result, I agree with Deputy Ó Cathasaigh that this is one of the major aspects of the general scheme that require further legislative scrutiny before its introduction.
The significant events, as Deputy Ó Cathasaigh rightly said, are not determined or outlined in the general scheme. In addition, because the sector is as diverse as it is, what is a significant event for a charity with a turnover of over €10 million is very different from a significant event for a charity with a turnover of €100,000. In essence, one of the things we seek in the proportionality, the balance and the fairness we are looking for from regulation is that support from the regulator to advise in all these instances what would constitute a significant event. That will be different depending on the nature of the service and depending on the scale of the enterprise being undertaken.
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