Seán Ó Fearghaíl (Kildare South, Fianna Fail) | Oireachtas source

I should also acknowledge the role of my predecessor, Deputy Troy, who adopted a highly proactive and energetic approach to the brief. In addition, I wish to pay tribute at the outset of this debate to the Fianna Fáil Ministers in the arts sphere who have served since 1997. I refer to people like Síle de Valera, John O'Donoghue, the late Seamus Brennan, Martin Cullen and Mary Hanafin. Sadly, none continue to be Members of this House but it is true to observe that as Minister, each became a powerful advocate for the arts. One often hear Ministers being criticised for having gone native in their Departments but in their case and that of the Minister, such a comment should be seen as a compliment.

Prior to the summer recess, my predecessor, Deputy Troy, and my party leader, Deputy Martin, tabled a motion on the arts and I consider it to be appropriate today to restate the commitment of my party to the arts. That motion tabled last June endorsed the positive contribution that a thriving arts and culture sector makes to Irish society as a whole, acknowledged the value of our cultural heritage and recognised the impact on the economy and jobs of the wider arts sector, which contributes €4.7 billion to the economy and directly and indirectly supports a massive 79,000 jobs. The motion also noted that in the period 2005 to 2010 alone, more than €1.1 billion was invested in the sector. It highlighted that these funds facilitated a transformation in the national, regional and community arts and culture infrastructure, in performance venues, as well as in film and television production capacity. In the perception of Fianna Fáil, Ireland's unique culture has long played a key role in defining us as a people and promoting a positive view of Irishness around the world. In particular, my party is of the view that we must be mindful of the capacity of the sector to provide opportunities for self-expression and involvement, which can help to lift people's spirits in a time of economic struggle. Fianna Fáil also realises the economic potential of the arts and creative industries and their role in supporting enterprise and innovation in the wider economy.

It is clear, however, the arts sector has not been immune to the recession and the squeeze on public finances. The Minister has made this clear both in this House and the national media. Funding for the Arts Council has been reduced by a quarter over the past four years. Naturally, many in the sector consequently feel obliged to look elsewhere and private philanthropy is an obvious avenue. Obviously, the Minister and his colleagues hope there is much to be gained from philanthropy and on this side of the House, I am happy to endorse the initiatives he has taken. Moreover, Fianna Fáil will happily render any practical assistance it can. One such measure, the philanthropy leverage initiative, is designed to encourage philanthropic sponsorship and endowment funding of the arts from private sources. While the Minister's proposal is modest in scale and almost is a microleverage scheme with State funding of just €230,000 set aside for arts organisations that raise money from private funds, it is nonetheless a meaningful step in the right direction.

Earlier this year the Forum on Philanthropy and Fundraising published a report and I must state the economic contribution made to national life by the non-profit sector in Ireland is quite remarkable. The employment of more than 100,000 people and an annual turnover of €5.7 billion are outstanding, as are the €3.7 billion in wages and salaries and the €290 million in employers' PRSI contributed each year. The report by the Forum on Philanthropy and Fundraising aspires to a 60% increase in philanthropic giving by 2016. The report's four key recommendations are establishing a national giving campaign, improving the fiscal environment and infrastructure for giving, developing fund-raising capacity among not-for-profit organisations and creating a national social innovation fund. As the Minister observed, philanthropy, certainly on a large scale, is a concept one associates more with the United States than this country or many European countries. While Ireland has a deserved reputation for charitable giving, it tends to be more in the area of crises and emergencies. Moreover, we can be very proud of what we have done in this regard. I still recall the remarkable scale of generosity exhibited by the Irish people during the Live Aid concert in the 1980s, when Ireland's contribution per capita must have been two or three times that of the United Kingdom where the event originated. Furthermore, notwithstanding the recession, charitable donations increased by almost a quarter between 2009 and 2010, a fact that is not widely acknowledged across the country. Ireland's contributions to charitable donations therefore are very high.

According to figures released last year, 89% of Irish adults give to charity, compared with 58% in the UK or 40% in Germany. The latter figure might not surprise Members. According to Philanthropy Ireland, Dubliners are the most generous givers to charitable causes and organisations in Ireland, donating an average of €207 per annum.

The rest of Leinster follows next with a typical annual donation of €190. People from Connacht and Ulster spend €99 per year and finally in the Minister's region, Munster, only €48 is given to charity each year. He might have a comment to make on that later. In the United States I understand that approximately 2% of gross domestic product, a remarkable $300 billion, is donated in the system of gifts or philanthropy. In Ireland the figure is 0.7% - the same as the target for our development aid budget. No doubt a key reason for this is that the state is much smaller in the United States. While I think few if any Deputies believe in minimal government, that is not the case in the US. In that country any form of public endowment for the arts can be subject to hostile criticism from those with a philosophical aversion to public spending.

A recent article in The Irish Timesby Madeleine Clarke, founding director of the Genio Trust, pointed out that there is not only less philanthropic giving in Ireland than in many other countries, there is also a less developed infrastructure to channel philanthropic funds to where they could achieve the greatest impact. She went on to comment that the majority of this is spontaneous rather than planned. Much more could be achieved if philanthropy was guided by trusted intermediaries who could help achieve more significant and sustainable impact.

As I have said, any private giving we have in Ireland does not lean towards the arts sector. Private donations towards to the arts can often seem something of an elite pursuit, associated with those with deep pockets rattling their jewellery in the best seats in the house. Like many a caricature this may have a degree of truth in it but it is certainly not the whole story.

For example, an event like the triennial Dublin Piano Competition, which over the years has been corporately sponsored by GPA, Guardian Insurance and Axa, has many small private donors. Over the years supporters known as competition friends have contributed more than €1 million, money which has been used to enhance the winners' musical experience and to provide opportunities for young Irish pianists to reach the standards of their international peers. I understand the competition is now supported by a private benefactor which, given the scale of the competition, is a significant act of generosity.

The Friends of the National Collections of Ireland was established in 1924 with the goal "to secure works of art and objects of historic interest or importance for the national or public collections of Ireland by purchase, gift or bequest". It has acquired hundreds of heritage items over the past 88 years. For example, the National Gallery of Ireland has received 47 paintings, 133 print room items, four stained-glass panels and a sculpture through the FNCI. Other institutions to receive donations include the Dublin City Gallery, the Crawford Art Gallery in Cork and the Ulster Museum.

In developing the sector I presume the Minister will consider the report of the forum, especially the concept of a national giving campaign. I ask the Minister to elaborate on how he hopes to develop a culture of giving. Obviously that is not a matter just for him but I would be interested to hear his thoughts. Especially in such straitened times when there are so many other competing causes, how can we persuade people to remember the arts? Would the Minister consider appointing a specific champion for the cause? How about some of our most distinguished authors and artists? The late great Maeve Binchy would have made an outstanding advocate, especially as I understand it, in view of the fact that she did not take advantage of the tax exemption for creative artists. Perhaps it would be better to showcase those who could benefit from a culture of giving instead of celebrity appeals? In order to encourage a culture of giving we need to emphasise that ultimately it is not a subsidy, but an investment in our culture, our society and our economy. There can be a multiplier effect that will be of benefit to all, not just those receiving any immediate benefit.

The forum report suggested a high-profile launch for such a campaign with the Taoiseach and a Minister involved. As Fine Gael's election guru, Mr. Frank Flannery, chaired the report group, this should be easy to achieve. How does the Minister hope to ensure his portfolio can get its moment in the spotlight? The next step for a campaign of giving, according to the forum report, was to commission some motivational research on charitable giving and philanthropy as a matter of priority. Has this happened yet? Will the Minister have any input into the nature of the research?

A flip side of this is how those raising funds should go about their business and utilising to the full the culture of giving. The forum suggested a campaign of education in fund-raising itself, with training and support systems in place. Many want to fund-raise and to increase their activity but they are not always clear as to how to go about it. The forum proposal for diplomas and certificates, an approved and recognised qualification, will also serve to build confidence.

When launching the report of the Forum on Philanthropy and Fundraising, the Taoiseach made the point that "fund-raising will never be - nor should it be - a substitute for Government expenditure". I endorse that but there is a corollary, namely that fund giving should not be a substitute for paying taxes. I know there are caps in place but the principle is one of giving and any attempt to use it to reduce tax liabilities detracts from that principle. Is it really giving if it is reducing the Exchequer's income? I am not rejecting the idea of tax relief out of hand but perhaps we should consider it being available at the standard rate only.

There may be a need to simplify the rules for giving because anything that makes it easier to understand is welcome. The report of the forum proposed the decoupling of tax relief on donations to charities and approved bodies from the restriction that treats business investments, from which the investor benefits, in the same manner as charitable donations where the donor derives no benefit. This proposal acknowledges the key difference between tax relief to private philanthropy to promote the public good and private investment to promote private gain. This clearly is welcome and should be implemented at the earliest opportunity.

Other recommendations deal with the infrastructure and administrative arrangements for philanthropy. Firm regulatory oversight is rightly called for because a clear system of accountability is imperative if greater giving is to be achieved. Reliable information is also required and the suggestion that the Central Statistics Office collect data on charitable donations on a quarterly basis is also one that seems very sensible to me. While the not-for-profit sector is very significant, the level of information possessed about it certainly is not.

There is no doubt that the connection between philanthropy and the arts is relatively undeveloped in Ireland. We all agree that this needs rectifying and we are happy to follow the Minister's leadership on the matter. Fianna Fáil will be happy to support any constructive measures that achieve this goal. We are all agreed that a culture of giving can have widespread social and economic benefits. It is up to all of us with an interest and a brief in the arts to ensure that culture gets its look-in. Notwithstanding the recession, many in Ireland still have great personal wealth and it is to be hoped that with it - to quote Ms Olive Braiden, a former chair of the Arts Council - "comes a responsibility to give, to display the generosity, wisdom and quiet patriotism that fosters those aspects of human endeavour that bestow life with meaning and possibility".

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