M J Nolan (Carlow-Kilkenny, Fianna Fail)

I thank the Minister for being present for most of Second Stage and commend him on its introduction. The Bill has undergone a lengthy process of consultation with the interested parties and I hope we will see it enacted as soon as possible.

It is extraordinary that this is the first charity legislation in over 30 years. In that time, this country has seen significant changes, we have gone from being a very weak economy to one of the best in the world. As a result people have more disposable income and charities have benefitted. It is only right, therefore, that we look at the legislation that controls charities and introduce a Bill that takes account of the new climate in which they operate.

It is internationally recognised the Irish are generous in their support for charities. A higher proportion of Irish income goes to charity than is the case in most other countries. It is difficult to make direct comparisons but per head of population we supported the Live Aid concert to a greater extent than any other country.

We have a strong tradition of supporting overseas aid. I am concerned, however, that while the larger charitable organisations have the resources to comply with the legislation, such as the Society of St. Vincent de Paul, GOAL and others, some smaller and one-off charities might be overlooked. Spontaneous ad hoc fundraisers take place for local and domestic tragedies. In the Bill there may be a figure whereby charities will not have to submit accounts. Perhaps the Department could come up with a form for an annual return by local charities to avoid the expense of providing accounts. Such accounts can take up a significant part of the funds raised in administrative expenses.

I am also pleased that the Bill provides for the establishment of a regulatory authority for charities. Those currently employed in other agencies that will be disbanded as a result of this legislation will transfer over to this new authority. It is important that we have transparency and that the public can be confident when giving to charity. I hope this will limit the abuses that have taken place. It is not always possible but if we could move towards a system that is not so cash-based, it would be an improvement. It makes things easier for the charities to have a regular monthly income from standing orders. They then know how much they will have annually.

I am concerned about cash collections. We will see many such collections in the run-up to Christmas, where people rattle a bucket and ask for a contribution to a charity a person might know nothing about.

I am pleased to note this Bill provides for regulation that will oblige individuals who are collecting to have a sealed container on which they will identify the charity or the purpose of the fundraising effort. Some of my colleagues have become highly suspicious of, and put off by, the plethora of charities that have mushroomed on a weekly or monthly basis. They have taken the decision that the only charity in which they have confidence, given its overheads are so low as a proportion of the moneys collected, is the Society of St. Vincent de Paul. All Members could take a leaf from that organisation's book as its overheads and administration costs are extremely limited. It is a voluntary organisation that carries out wonderful work for less well-off people in Irish society. As Christmas approaches, its track record and the manner in which it manages its affairs will ensure it is well supported.

The issue of charitable status should be reconsidered by the Minister of State on Committee Stage. I note certain areas will not receive such status. Perhaps in consultation with the Revenue Commissioners, which has done much work in respect of the taxation status of certain charities, it should not be too difficult to set down, organise and agree on what organisations should enjoy that status. The definition of charitable organisation is of particular interest to me, as is the list of those that are excluded from the definition. I note that political parties rightly are excluded from such status.

The Bill provides for the establishment of the new independent body, namely, the charities regulatory authority. It outlines the function of the authority and the standards it must achieve. One provision will empower the authority to investigate charities, which will be an important role. Proactive use of that provision from the outset could lead to the weeding out of many of those charities about which many Members are concerned, which would engender confidence in future that the remaining regulated organisations are bona fide charities.

The authority, where it so desires, correctly will reserve the power to request full audited accounts from a charity, irrespective of its income and expenditure. However, some movement in this respect is required, whereby small one-off fund appeals on behalf of small charities can be catered for without putting them to the expense of being obliged to employ auditors and accountants to make returns. I commend the Minister of State on this welcome legislation and wish him success in its speedy passage through the Houses.

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