Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael) | Oireachtas source

I welcome the opportunity the Bill has afforded me to speak. I understand from where Deputy Pádraig Mac Lochlainn is coming in proposing his amendment, but I accept the comments of the Minister on the human rights aspect of it.

Irish people are renowned for their generosity in making charitable donations. Whenever a disaster strikes, whether it be local, national or international, we can be sure Irish people will either fund-raise themselves or give generously to help those in greatest need. The lack of regulation in the past has allowed some in the charity sector to take advantage of this giving nature. In fact, charities have become an industry and there is huge diversity in their size. There are 24,000 not-for-profit organisations in Ireland, which figure is an illustration of the fact that charities have become an industry. Of these 24,000 organisations, 8,342 qualify for a charitable tax exemption. The annual income of the top ten is €740,000 or above.

In a sector worth €4.9 billion, it is clear that a small number of charities are receiving the lion's share of the money both from fund-raising activity and from the State. The recent revelations on the salaries of some CEOs have not only astonished many of us but disappointed us too. Everyone in the Dáil and in every household in the country has given generously to charity in good faith that the money will go to those who need it most. Serious damage has been done. Even with the downturn in the economy, in 2010 and 2011 the fund-raising figures rose. That is, again, an illustration of the generosity of the Irish people. I am afraid that 2012 and 2013 will reveal a different story. The few have caused problems for so very many.

While some charities are subject to the Director of Corporate Enforcement, Revenue, criminal and fraud legislation already, the introduction of the regulator, as planned by the Minister for Justice and Equality, Deputy Shatter, is necessary and will help rebuild the trust as never before required by the Irish people. It is in the interests of both the public and the State that the regulator is put in place as soon as possible. That will help restore public confidence and introduce additional transparency, which the majority of charities will welcome, as the genuine charities that do everything correctly and comply with good corporate governance and good financial arrangements need our support more than ever.

I acknowledge the leadership of the Irish Charities Tax Reform Group, which has carried out good work within the sector. It has continued to advocate good practice, organised seminars and provided a statement of guiding principles for charities. It has also worked very hard with the Department in order to progress the establishment of a regulator. Trust must be restored as soon as possible. The charities service users deserve no less.

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