Mattie McGrath (Tipperary South, Fianna Fail)

This is my first time to speak in the House and I take the opportunity to congratulate the Ceann Comhairle on his elevation to high office. I wish him well in his term.

I am grateful for the opportunity to address the House on this important Bill. The updating of regulations relating to the diverse charities sector will create a framework for both national and local organisations involved in all areas of social, economic and civic life in the State. Without such organisations, there would be a significant additional cost burden on the Exchequer. I thank the Minister of State, Deputy Carey, and his predecessor, the Minister of State, Deputy Noel Ahern, for bringing this Bill forward.

There are more than 19,000 community and voluntary organisations sustaining our civil society. These bodies require support as well as regulation. With two thirds of Irish adults — or more than 2 million people — engaging annually in the social, cultural and humanitarian activities offered by our community and voluntary sector, it is no surprise that the sector contributes more than €2.5 billion to the economy each year and employs more than 63,000 full-time and part-time staff. In south Tipperary, I have been involved with many voluntary organisations such as voluntary housing schemes, community alert projects, the Ring a Link rural transport scheme, voluntary naoinraí and other child care projects, community employment schemes and many others. I pay tribute to all these organisations, many of which rely on volunteers.

I am conscious that many Deputies are or were previously involved in community and voluntary organisations throughout the State which operated with the benefit of charitable status conferred by the Revenue Commissioners. This status has afforded several financial benefits to organisations with specific defined charitable objectives. All these organisations enrich the life of local communities and frequently are established by forward looking volunteers where a need is identified by local people that has been neglected by the public sector.

Under this legislation, charitable status will be dependent on an organisation having charitable purposes only and being for the public benefit rather than having any particular legal form. Charitable purposes will be fully defined for the purposes of the law for the first time in primary legislation. They encompass the prevention or poverty or relief of poverty or economic hardship; advancement of education; advancement of religion; and any other purpose that is of benefit to the community.

Included in the latter category are the advancement of community welfare, including the relief of those in need by reason of youth, age, ill health or disability; advancement of community development, including rural or urban regeneration; promotion of civic responsibility or voluntary work in the community; promotion of health, including the prevention or sickness or relief of sickness, disease or human suffering; advancement of conflict resolution or reconciliation; promotion of religious or racial harmony and harmonious community relations; protection of the natural environment; prevention of suffering or relief of suffering of animals; advancement of the arts, culture, heritage or sciences; and the integration of those who are disadvantaged and the promotion of their full participation in society.

The community and voluntary sector is estimated provide more than €2 billion to the economy, with more than 60,000 full and part-time staff and tens of thousands of volunteers, many of whom have distinct legal responsibilities in governing their organisations. There was previously an ad hoc approach to different aspects of the work of charities. It is important that this Bill will consolidate all these different aspects into one framework. Society is changing and this should be reflected in how the State defines what charities are and how they are supported and regulated. Much of the public discourse will be about ensuring fundraising aspects of charities are properly controlled, including eliminating financial improprieties and fraud.

We must be careful to support rather than discourage spontaneous community fundraising. There is uncertainty in terms of the implications of the Bill for people who organise or take part in spontaneous community fundraising in response to disasters, such as the tsunami crisis. The Bill must clearly set out the registration exemptions that will apply in regard to permits in the case of exceptional, once-off community responses to urgent need. If this is not done, there may be uncertainty around people's willingness to organise such responses for fear of falling foul of the law. This would be a terrible additional consequence for those already affected by a tragedy.

In Britain, the Charities Act 2006, which includes exemptions for local, short-term collections, could provide a model in this regard. The relevant provisions in this legislation could be adapted to recognise the Garda as the relevant authority rather than the local authority as is the case in Britain. Under this Act, a public charitable collection is exempt from registration requirements if it is a local, short-term collection, the promoters notify the local authority in whose area it is to be conducted within a certain timeframe of particulars relating to the collection, the appeal is local in character and the duration of the appeal does not exceed the prescribed period of time.

The Bill we are discussing today should also be about enabling charities to work in an environment without unnecessary bureaucracy. The provisions of the Bill should act as a help and not a hindrance to the broad range of work that only charities can undertake, which can involve public, private and voluntary resources. I agree with my colleagues that no expense should be incurred by a charitable organisation under these new provisions other than perhaps a nominal fee for registration.

We must protect the identity and independence of charities by ensuring that State agencies are not included in the register of charities. Otherwise, there will be confusion in the public mind about the status of charities versus State agencies. Charities are independent organisations established by members of the public in response to an identified need, the response being recognised as being for a charitable purpose and for the public benefit. In the world of charities, it is the independence of the board and the way it is elected by volunteers that is important. Charitable activity should be independent of State direction or control, yet there are many State bodies, such as the HSE, on the list of charities operated by the Revenue Commissioners.

To avoid any confusion in the mind of the public between what is a charity and what is a statutory agency, State-owned or controlled entities should not be included in the register of charities. Public bodies or organisations, the constitutions of which contain clauses that confer on Ministers powers to control appointments to their boards, should be excluded. It is recognised, however, that State agencies that are included in the Revenue Commissioners' list of organisations eligible for charitable tax exemptions, such as the HSE, should continue to be eligible for relevant tax exemptions. Perhaps a special tax exemption could be created for such bodies or agencies so they would not be required to seek inclusion in the register of charities to continue benefiting from these tax exemptions.

On the definition of charities and charitable activities, I agree that the purpose should pertain to activities of benefit to the community. I propose to the Minister to extend the range of activities in section 3(8) to include and explicitly mention the provision of social housing for disadvantaged groups. A similar reform in the UK looks to establish a charities framework with social housing included as a charitable activity.

There are over 500 voluntary housing associations in Ireland providing social housing approved by the Minister for the Environment, Heritage and Local Government. They provide up 20,000 homes for low-income families, the homeless, older people and people with disabilities. Housing associations now provide up to 30% of all new social housing and in the recent national agreement, Towards 2016, the Government has agreed that housing associations would provide 6,000 new homes between 2007 and 2009. Therefore housing associations are a significant part of the community and voluntary sector, with over €300 million in turnover from capital and revenue sources this year.

The provision of social housing from approved bodies in the voluntary and co-operative housing sector is a significant charitable activity in Ireland. Currently, voluntary housing associations work on a charitable level and must have approved status from the Department of the Environment, Heritage and Local Government.

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