Jim O'Callaghan (Dublin Bay South, Fianna Fail) | Oireachtas source

Fianna Fáil welcomes this motion tabled by the Social Democrats and the Green Party and we commend them on tabling it. It is clearly a well-drafted and timely motion and one which we will support. It is also important at the outset, however, to recognise the very important and distinguished role that charities have played in Ireland, not just in recent times, but also historically. We know that many centuries ago, charities were set up in this city and throughout the country to deal with people who were living in an impoverished state.

Part of the reason for it was that Governments of the day did not provide for the needy. It must be recognised that Ireland has a very distinguished and honourable tradition of charities looking after those who need help the most. Over the centuries, charity, to a great extent, was provided by churches of different denominations, which provided health care and education at a time when the State did not. In theory, as Governments become more progressive and as we take into account the social needs of our citizens, the requirement for charities should decline. However, in practice, we have a booming charity sector. Even if we had a utopian State in which the Government looked after every aspect of society, there would still be a legitimate requirement for charity.

We must recognise that in charities there is a fundamental transaction of trust. People who donate money to charities give it on trust and on the basis that the money will be handed on to the needy beneficiaries to whom they intend the money to go. Unfortunately, this basic principle of charity has been undermined in recent years by a number of issues, and two in particular. While they are separate issues, we need to appraise them here this evening.

First, it has become apparent in Ireland and around the world that charity has become a business, and very large charities are being managed as though they were large businesses. Consequently, people working in charities are being paid very high salaries. While I do not seek to prevent individuals in charities from being paid high salaries, there must be sufficient transparency so that people who want to donate money will know how much of their money is being spent on staff costs. It is a matter of concern to donors if they find a significant amount of the money they are donating is going to be used to pay staff rather than going straight to the needy. This factor can be ameliorated and resolved through greater transparency in the charities sector.

The second and more serious issue, which is completely distinct from the first issue, is the series of allegations of misappropriation of funds that have been aired recently. They are matters for the Garda Síochána and our courts. Any misappropriation of funds from a charity is theft and should be treated the same way as any other allegation of theft.

Although the Charities Act was passed in 2009, there has been a delay in the commencement of Part 4. Unfortunately, due to this delay, the charities that are in the news cannot be subject to the full force of the law that was passed by the House so many years ago. The law would have allowed for the appointment of inspectors. It would have been a very useful power. Under the Act, the inspectors would have been able to go in and would have had the power to compel staff officers of charities to give evidence, produce documents and give answers. It is very difficult to get this type of information unless one has legal powers of compellability to force individuals and staff officers of charities to provide it.

Deputy Stephen Donnelly said that the charitable status of some organisations might not be appropriate. This is a matter first and foremost for the Revenue Commissioners. Our Revenue Commissioners are very effective, and if there is any question over the charitable status of organisations, the Revenue Commissioners should inquire into it.

We have a significant number of charities, 12,500 of which are registered with the Charities Regulatory Authority. Given that many of them operate in a similar way to businesses, they must recognise that if they were businesses there would be calls for consolidation so that costs and staff could be reduced. While we may not be able to force them to do so, where the State is a funder of charities, we should encourage them to do so.

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