Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

On behalf of the Labour Party, I note that we will support the motion tabled by our colleagues, the Social Democrats, who we commend for it. The motion rightly allows the House to discuss a matter that has been of enormous public concern over recent weeks. Sadly, we have once again seen outrageous behaviour on the part of individuals attached to one charity. This time that charity is Console. More recently, alarming allegations have been raised about the operation of St. John of God's. As the motion recognises, this is hardly the first time we have seen such concerns raised. There have been other issues in the past. Each and every time, public trust in all of our charities is damaged. The Minister set out that there are 12,500 charitable organisations in the State, which is an extraordinary number. In a very tiny percentage of cases, there are real concerns. Unfortunately, when concerns arise, they cause problems for charities across the country which are doing wonderful work here and overseas. These charities then see falls in donations and experience a lack of public trust. People who have fund-raised for a charity or volunteered their time in good faith now believe that their goodwill can be easily abused. Front-line staff who carry out heroic work on a daily basis are undermined and demoralised.

Many charities support people when they are at their most vulnerable. Console was no different. There is hardly a family or community that has not been touched by the agony of suicide. The palpable betrayal felt by those who fundraised for and supported Console after the death of a loved one through suicide has been one of the most wretched consequences of this whole saga. The despicable and deeply disturbing misconduct unveiled at Console shines a spotlight yet again on the funding of voluntary agencies, particularly in the health sector. These agencies are funded under sections 38 and 39 of the Health Act and are engaged by the HSE under various governance agreements. Personnel employed in section 38 agencies, for example, are directly bound by the Department of Health's consolidated pay scales. Approximately 1,900 voluntary agencies are funded by the HSE to the tune of approximately €3.1 billion each year, which is a considerable sum. Over €2.5 billion of this expenditure is allocated to 40 or so organisations under section 38 of the Health Act. It is a huge amount of public money and we have a responsibility to ensure that it is properly spent. Indeed, it is a significant chunk of the total health budget and must be subject to the strictest framework of accountability and transparency. It is obscene and unacceptable to have to contemplate the idea that public money allocated for the provision of support services for grief stricken families could end up paying for fast cars, designer clothes and exotic foreign holidays for a clique at the top of a charitable organisation.

Since 2009, a number of reforms of the governance agreements with section 38 and 39 agencies have been introduced. In 2009, the HSE developed a national standard governance framework with the non-statutory sector. In 2010, service arrangements were introduced between the HSE and section 38 agencies under this framework. In 2013, the HSE sought to enhance the governance arrangements in place with section 38 agencies and to strengthen the direct relationship between the HSE and the boards of each agency. This included the introduction of an annual compliance statement process and annual meetings between the HSE and chairs of section 38 agencies. Many of these reforms were introduced on foot of the revelations most of us will remember at the Central Remedial Clinic a number of years ago. As such, it is deeply disappointing that we are still in a place where the governance arrangements for agencies that receive billions in public funding, frankly, do not appear to be fit for purpose.

My colleague and Labour Party leader, Deputy Brendan Howlin, put a number of basic questions to the Tánaiste this afternoon in regard to section 38 agencies. He asked whether all section 38 agencies were in full compliance with HSE requirements regarding board and corporate governance. He asked if all agencies adhered to Department of Health payscales in all circumstances. He asked if the chairs and directors of all section 38 agencies had signed the compliance statement as required. He asked if all overpayments notified to the Department of Health had now ceased. The Tánaiste responded to Deputy Howlin by announcing that an external review of the whole system of funding and governance of voluntary health agencies was now taking place. This has to be welcomed because it is clear that the Tánaiste, the Minister for Health and the Department do not have the answers to these fundamental questions and have been singularly unable to untangle the murky web of funding and governance through sections 38 and 39. This review is a key part of the motion. It rightly seeks a system-wide review of the governance and reporting procedures for public funds disbursed to charitable organisations and an enhanced governance code for the sector to which all organisations with charitable status are required to adhere.

Notwithstanding the announcement of the review, there remains widespread public disquiet. The Minister for Health must publish all HSE audits of section 38 organisations as a matter of urgency. He must also disclose the number of section 38 organisations where concerns remain in terms of payments outside of the Department of Health pay and pension scales, otherwise the public will be subject to a drip-feed of sometimes jaw-dropping revelations on the front pages of the newspapers and in the media. We have heard from some of the people involved in these organisations today and of their concerns around this. Such a drip-feeding of revelations will continue to undermine public trust and damage those agencies and charities that operate to the highest possible standards. What is the timeframe for the conclusion and publication of this report? If, or when, a stronger governance framework is introduced will a sufficient number of qualified accountants, financial controllers and auditors be employed by the HSE to ensure an effective monitoring and invigilation of the funding system? It is of little use to introduce new rules unless the system is robustly resourced to ensure effective monitoring and enforcement. The same applies to the charities regulator. All outstanding parts of the charities regulator legislation must be commenced as a matter of urgency. Indeed, many Members have raised tonight a number of complex issues which must be dealt with by the regulator. It needs to be resourced to undertake that work.

These actions are vital for strengthening the transparency of charities' regulation and funding and to restore public trust. I commend the Social Democrats for presenting the motion to the House and reiterate the support of the Labour Party for it. I hope the Government will move urgently to the implement these important reforms. I welcome the fact that the Tánaiste has indicated that the Government is not opposing the motion.

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