Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

I thank the Deputy for raising this important issue and for praising the work undertaken by Liberties Recycling. I am very aware of the difficulties that charities can face when raising funds to support their work, especially in the current financial climate. This was highlighted in the "Prime Time" programme on this topic, which was broadcast a number of weeks ago. As I did in the Seanad, I congratulate "Prime Time" and RTE for their careful investigative work in revealing and bringing to public attention the activities of an organised gang targeting clothing banks. Burglary, theft and all types of criminal activity are, of course, to be condemned. However, there is something particularly nasty, callous and cynical in the actions of those who steal, for their own benefit, charitable donations intended to help those in need.

As to the revelations contained in the "Prime Time" broadcast, I have requested a specific report from the Garda Commissioner in regard to this type of crime and will give very careful consideration to the Commissioner's views and to any suggestions he might make in this regard. It is important that the Garda target and bring to justice those who are engaging in this despicable type of criminality.

I assure Deputy Byrne that I fully appreciate the need to protect the fund-raising ability of charities, including charities that have chosen to support their fund-raising efforts through the operation of clothing banks. I am determined to ensure that the donations of clothes and other items, so generously given by members of the public in the belief that they are supporting a charity and helping those in need, are not diverted by theft, illegal profiteering or other illegal activities.

The Criminal Justice Acts contain the necessary measures to address theft from charity clothing banks. Theft, including theft from charity clothing banks, is an offence contrary to section 4 of the Criminal Justice (Theft and Fruad Offences) Act 2001. A person convicted upon indictment of theft is liable to imprisonment for up to ten years and-or an unlimited fine.

While theft from charity clothing banks is clearly a criminal issue, the topic for this debate also concerns the wider issue of public trust and confidence in charities. The recent revelations in the "Primetime" programme regarding the proportion of profit from charity clothing banks that actually reaches the charitable cause with which the bank is associated is also a cause for concern. Such revelations are a disincentive for people to donate and can have a negative impact on donations to charities, including donations to charities that go to great effort to ensure that the maximum proportion possible of proceeds from donations is used for charitable work.

Members of the public are entitled to know what financial benefits charities receive from such donations. Until the recent revelations by "Primetime", many donors to charity clothing banks may have been under the impression that all proceeds went to the charity. I believe there is a need for greater transparency when it comes to arrangements charities may have with commercial companies concerning the operation of clothing banks. Where a charity is lending its name to a clothing bank and by doing so is encouraging members of the public to donate, they have an obligation to indicate clearly what financial benefit they are receiving from this arrangement.

Supporting public trust and confidence in charities is the core objective of the Charities Act 2009, which was enacted to introduce a system of statutory regulation of charitable organisations. While the Act does not deal directly with the regulation of Irish clothing banks or collections, it contains measures aimed at preventing the abuse of charitable status. When brought into force, these measures will support the efforts of the relevant authorities in addressing the difficulties surrounding theft and illegal profiteering from charity clothing banks. Under section 46 of the Act, it is an offence for an organisation that is not a registered charity to describe itself or its activities in such terms as would lead members of the public to reasonably believe that it is a charity. This Act, when implemented, will help to safeguard that vital public trust in charities.

While full implementation of the Charities Act 2009 and the creation of a register of charities have been delayed for financial reasons, the Government remains

committed to progressing its implementation and putting in place a dedicated regulatory framework for charities in line with the provisions of the Act. My Department recently conducted a public consultation on the implementation of key provisions of the Act on a phased and low cost basis. The submissions received are currently being reviewed and I look forward to publishing the outcome of the consultation in due course and to providing further information on the timeframe for the introduction of an operational charities regulatory authority and creation of a statutory Register of Charities as provided for under the Act.

Charitable organisations play a key role in communities throughout the country. It is in all our interests to ensure that they continue to do so. This includes protecting genuine fund-raising efforts against any who might wish to exploit the goodwill and generosity of the public. I thank Deputy Catherine Byrne for raising this topic. I appreciate the real concerns expressed by Liberties Recycling and I will draw to the attention of the Garda Commissioner the specific difficulties they are experiencing, as described by the Deputy.

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