James Bannon (Longford-Westmeath, Fine Gael)

The purpose of this Bill is to enact a reform of the law relating to charities to ensure accountability and protect against abuse of charitable status and against fraud. It will enhance public trust and confidence in charities and increase transparency in the sector. An oft-quoted proverb regularly trotted out in reply to requests to people to part with money is, "Charity begins at home". Perhaps it is misquoted, however, because the proverb in full is more explicit and generous and does not warrant abbreviation, namely: "Charity begins at home, but should not end there."

That is a very different slant on matters and a hard hitting message for the complacent. This is not to take from the hard working individuals and organisations whose efforts have been the backbone of charitable fundraising over many years. Nonetheless, the legislature could be accused of extreme complacency. This Bill is the first charity legislation in more than 40 years. I believe the last legislation was in 1961. The Charities Bill 2007 will introduce a definition of "charitable purposes" into Irish law and clearly define charity in all its guises and what its parameters are.

There is a tendency in the study of social sciences, social policy and sociology to take refuge in a lack of definition. For example, the concept of poverty is difficult to define. This may be so in academic circles, but not so difficult for those experiencing it who are often at the mercy of a Government which appears to ignore the vulnerable in our society. This Bill is welcome in that its purpose is to put in place a statutory definition of a charitable organisation and a charitable purpose for the first time in primary Irish legislation. This, through the advancement of community care, will give a definition, too, to poverty or economic hardship. The Bill's purpose is to enact a reform of the law relating to charities to ensure accountability, which is what we all want to see. It will seek to protect against the abuse of charitable status and against fraud.

At present, there is virtually no regulation for the 7,500 or so charities in the State. Some prominent charities have been associated with fraud and scandal over the years and there has been no legal requirement until now to provide donors with financial information, aside from that demanded under company law. This has militated against reputable charitable organisations, which have been tarred with the same brush as those seeking to defraud. We are all aware of the dubious perception that to give to a relief programme is merely to provide expensive cars and other perks for aid workers. Nothing could be further from the truth for those whose lives have been given over to the pursuit of the greater good and whose work from the smallest local efforts to the largest global aid projects have helped to lessen the suffering of the poor and afflicted.

Indeed, many members of my family were members of religious orders and worked in various parts of the world. I have granduncles who worked for charitable causes in Australia, South America and Africa and have uncles who gave their entire lives to serve communities in Africa and many other parts of the world.

A 1999 survey found that only 50% of respondents perceived charities to be honest and almost one third were concerned about honesty and accountability. Half those asked said they were tired of being asked to contribute to one charity or another. Currently, anyone can set up a charity collecting money and is exempt from registering or filing annual reports. This legislation will update that, which I very much welcome.

Currently, there is no register of charities. Even if charities wish to register, they cannot do so because there is no register of, or regulatory body for, charities. Like my colleague, Deputy Barrett, I believe this should be in-house and worked on by Government. There is a large number of quangos in this country. As Deputy Barrett said, there is the Department of Health and Children versus the HSE and the National Roads Authority versus the Department of the Environment, Heritage and Local Government. There are quangos under the remit of every Department. The people who elect us are fed up with what is taking place. The national Parliament is handing over powers to bodies even though we have a fine Civil Service and fine parliamentarians who are well able to look after the interests and affairs of the country.

What galls the public are the quangos and those faceless bureaucrats and their behaviour. This issue comes up time and again at public meetings. Faceless bureaucrats do not even answer the telephone. Almost every quango has answering machines. One never seems to meet anybody. One can have an expensive telephone call as a result of being left holding for several hours. It is time the Government addressed this issue.

Human contact is very important for people. Loneliness has crept into society. People cannot get to speak to another human being at the other end of the telephone and must leave a message on an answering machine with their request. This issue must be addressed urgently.

We talk about volunteerism and looking after people in society. One is not looking after people by having such a system in place. It does not help society or foster comradeship and the neighbourliness to which we were accustomed over the years. That type of system is not of benefit to Ireland. We have always had a unique culture in which there was great interaction between people. I would like this issue to be addressed in the not too distant future.

Many people give to charities. I read in a recent survey that the figure stands at 90% of the population, which is heartening. However, these people do not know to where their money goes and if it ever gets to the people for whom it is intended. There is the thorny question of how much goes on the salaries of professional fundraisers, leaving little after the overheads have been accounted for from the money which people have signed over in standing orders or donated in other ways.

A major question in regard to funding must be confronted with running costs of approximately €4 million for a charities regulator. Who is expected to meet this cost? Will the already hard-pressed charities being forced to take on new financial obligations have to contribute to the cost of the new body? If so, surely this flies in the face of charity. I hope the Minister of State will address this issue when summing up.

See this speech in context