Michael McGrath (Cork South Central, Fianna Fail)

I congratulate my colleague, Deputy Pat Carey, on his appointment as Minister of State and I wish him well in his new post. He hit the ground running and did a tour of the country over the summer meeting various local drug task forces and community groups. His is in a challenging portfolio and he has my full support in tackling those challenges.

The Irish people have time and again been proven to be among the most generous in the world in terms of making donations to a broad range of charitable causes. We are not slow to respond to the call for help whether it is providing foreign aid to Third World countries or helping to fundraise for local community projects. All Deputies know of many examples of fundraising in their communities which help deliver real progress. People may not know that this year as a Government we will provide more than €800 million in overseas aid.

There has never been more fundraising in Ireland than there is today or more competition for our generosity. Therefore, the introduction of the Bill is timely and appropriate. I warmly welcome the introduction of the Charities Bill 2007, which for the first time will provide a comprehensive and composite regulatory framework for charities in Ireland. It is important that the charities sector is regulated, so that bona fide charities can go about their work without a cloud of suspicion hanging over them.

I wish to put on record my appreciation for the work of so many volunteers throughout Ireland who give up their time for charitable causes. Whether it be standing at a church gate collection or carrying out essential administrative work, these volunteers are the backbone of the charitable sector in Ireland today and long may it continue.

The principal benefit of the Bill is the accountability it will bring to the work of charitable organisations. This will enhance public confidence and trust in the sector, and should address any concerns among the public about where their donations actually end up. This is a key point. Often the reluctance or unwillingness of people to give money to organisations is because they simply have no assurance of whether the money ends up going towards the intended beneficiary or how much of it does.

The term "charity" has taken on a broad and disparate interpretation and I am pleased the Bill provides a definition of "charitable purposes" for the first time in primary legislation. It is true the definition is broad and inclusive. However, given the wide range of charitable activity in communities today, deciding whether the work of a particular group falls within the definition of "charitable purposes" will be a difficult task.

Section 3 provides that "charitable purposes" includes "a purpose that is of benefit to the community" and it proceeds to provide a number of broad descriptions of what is of benefit to the community. Aside from obvious charitable organisations such as GOAL, the Society of St. Vincent De Paul and the Simon Community, other groups which may be affected by the Bill also spring to mind such as senior citizens groups, groups associated with fundraising for hospitals, church renovation committees, community associations, youth clubs, Lions clubs, active retired groups and even residents' associations.

Almost every voluntary or community group in the country carries out some element of fundraising as part of its work. It will be a challenge to differentiate the groups for whom fundraising is their core business and those for whom it is merely ancillary to what they do. We need to consider the extent to which this Bill is intended to regulate the thousands of community and voluntary groups throughout the country. It might be worth considering the examination of whether fundraising is a group's principal activity.

The establishment of the charities regulatory authority is a welcome initiative. We need a specific authority to regulate this area. However, as many Deputies stated, we cannot allow the authority to become a bureaucratic institution which deters and discourage charitable work. I know the Minister is anxious that the new regulatory regime should not be viewed as an obstacle to the work of charities and I am delighted the new authority will have a supportive role and will not merely be a watchdog.

Many community-based charities do not have substantial resources and we cannot impose onerous administrative requirements on them. I am pleased the new authority will produce an annual report, which will be laid before this House, providing a degree of transparency across the charitable sector that we have not witnessed before.

The register of charities will provide a central public register of charities in Ireland. I hope this register will be accessible to the public in a practical way such as being placed on a website to be established by the regulatory authority. At least the public will now have a benchmark to assess the bona fides of a charity which comes knocking on the door.

I note taxation issues concerning charities will continue to remain a matter for the Revenue Commissioners. The commissioners already grant charitable tax exemption under the Taxes Consolidation Act 1997 and other statutes and the regulation introduced in the Charities Bill should assist the Revenue Commissioners in their adjudication of the charitable nature of each organisation applying for tax exemption.

This Bill will especially enable us to gain a greater understanding and appreciation of the unincorporated charitable organisations which will also be required to submit an annual report to the regulatory authority or such other mechanism as the Minister or the authority will decide. This requirement will act as a deterrent to bogus charities and protect against abuse of the goodwill of the public. Incorporated charities are already subject to the provisions of the Companies Acts and the reporting requirements of the new authority will introduce a level playing field among all charities. It is important that the reporting requirements are simple and straightforward and that the administration does not become an undue burden on charities.

The Law Reform Commission has recommended a new legal structure for charitable organisations, the charitable incorporated organisation. The Minister is correct in not delaying the regulation of the sector pending examination of the significant issues involved in this unified structure, recommended by the Law Reform Commission.

Having read the briefing paper prepared by The Wheel, the national network that supports charities, to which Deputy O'Connor referred, it has made a valid point on the issue of spontaneous community fundraising. We do not want a situation where the regulation of the charitable sector prevents this type of fundraising, which often takes place on the spur of the moment, immediately after a tragic event of some kind. These groups are ad hoc and respond to an unforeseen need which has arisen in a community. All Deputies will have experience of the obstacle on community activity that insurance has become. We do not want regulation to become a similar obstacle to community fundraising.

The Bill is warmly welcomed as it provides an appropriate and responsible regulatory environment for charities in Ireland today. The new regime will enhance public trust and confidence in the charitable sector and will, hopefully, result in an even greater level of generosity to charities by the Irish people. I look forward to discussing some of the details of the Bill in the weeks ahead.

I commend the Minister on bringing forward the Bill and look forward to seeing its progression in the weeks ahead.

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