Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

A Leas-Cheann Comhairle, I join the other Members in congratulating you on your election and wish you well in that post.

I thank everyone who has contributed to this debate. I wish to express our appreciation for the support which has been pledged by Members from all sides. We are holding this debate because yet again, the country finds itself dealing with the consequences of light touch regulation as another scandal unfolds. The shocking Console controversy is playing out before our eyes. Problems in other charities are bubbling up at the moment and, of course, we know that over recent years there have been a number of cases of concern, most notably in respect of Rehab and the Central Remedial Clinic.

Two key issues or aspects of this question have arisen in the charity sector so far.

First is the misappropriation of money collected by so many volunteers for charitable purposes and the use of this money by certain individuals to fund lavish lifestyles. Second is the breaching of public pay limits where certain people in the charitable sector seemed to have a huge sense of entitlement to very big pay packets and very generous pensions. This is happening at a time when staff in those charities are often on the minimum wage or not much more. Staff in the CRC have seen their pension entitlements wiped out at the stroke of a pen while others are walking away with vast sums.

All these cases have highlighted the inability of public bodies to protect the interests of taxpayers and those who donate to charities. More worryingly, sometimes public bodies have been unwilling to protect taxpayers' interests and challenge the charities concerned. Once again, because the regulatory regime is so weak, we have the case of Console, where someone felt untouchable and acted accordingly. Sadly, very few lessons appear to have been learnt from similar cases in recent years.

Through this motion the Social Democrats is calling for four key actions. We need better regulation incorporating a system-wide review of governance and reporting procedures for public funds going to charities which should inform an enhanced governance regime for the entire sector. We also need a critical review of the HSE's 2014 revised governance framework because clearly that is not working adequately.

We need a more professional sector with mandatory training programmes for those assuming directorships on charity boards. There is a sense that there is a lack of appreciation of their general oversight responsibilities and especially their fiduciary responsibilities. There is an onus on the State to ensure that all directors in such circumstances are provided with adequate training so they are aware of those responsibilities. The other area under that heading is the need to strengthen the legal requirements on auditors for the reporting of financial irregularities.

Other Members have spoken about the need to resource Part 4 adequately. We welcome that the commencement order has been signed in recent days, but that will be fairly meaningless unless adequate resources are provided.

The motion calls for the establishment of an anti-corruption agency to end the fragmented approach to enforcement and prosecution of corruption in Ireland.

There are clearly significant shortcomings in the system of oversight of the charities sector. There are major failings on two key levels. There are the failings in the parent Departments or State agencies charged with overseeing the operation of charities. Most particularly, we are talking about the HSE. There are also the failings by Government in not prioritising the implementation of the Charities Act and not adequately resourcing the regulatory regime in recent years.

Yet again, one has to ask why the HSE did not take earlier action against Console when it discovered significant irregularities in its activities. Why does it take a media exposé before any firm action is taken about hugely suspicious activity? Why did it take the appointment of an outside interim CEO before key documents were secured? There are three possibilities: the HSE was not doing its job properly, it does not have the resources to do it properly or the governance structures are completely inadequate. Each of these scenarios is a major concern.

The Government has taken its eye off the ball in the regulation of the charity sector. Legislation on charities has been wholly ineffective to date. It took over 30 years before the Dáil passed a Bill to regulate the sector in 2009. Even then, when that legislation was introduced in 2009 key sections were not commenced. It was not until the Rehab and CRC scandals broke in 2013 that parts of the Act were commenced. It was not until the past few days when the revelations on Console exploded in the media that Government finally took action in respect of one of the most important parts of the Act, Part 4, relating to investigative powers.

The charities regulator, John Farrelly, had to rely on 1960s legislation in order to refer matters relating to Console to the Director of Corporate Enforcement. The regulator has not been adequately resourced to date. Until recently, the charity regulator had a staff of only ten people. How can such a number cover thousands of charities? Even this year, its budget was a mere €2.6 million, which is completely inadequate for the oversight of more than 12,5000 charities, let alone to get involved in the investigative area - those responsibilities now being placed on the authority through Part 4.

Charities in the main have served us well. The public values and appreciates the work undertaken. There is a significant history of volunteerism in this country which is to be welcomed and encouraged. Equally, there is a huge tradition of generosity among Irish people in contributing to charities. That element is put at significant risk because of the weakness of the regulatory regime in place. We must protect that at all costs.

However, as a country, we have become too dependent on charities. Too often, core public services such as education, health and housing have been subcontracted to the charity sector. In some cases this was done because the State traditionally was only too happy to farm out responsibility for public services, most notably to the Catholic Church. In other cases, it was because the service could be delivered at lower cost and on the backs of volunteers. This outsourcing has led to a very fragmented charity sector and also a very fragmented public sector with some significant duplication. We should not be so dependent on charities. Core public services should not be delivered by charities but by the State.

The fragmented nature of charities is mirrored in the fragmented enforcement when it comes to wrongdoing by charitable organisations. In true Keystone Cops fashion, we have the spectacle of seven ongoing investigations into Console, long after the money has vanished. It highlights yet again that Ireland does not have an effective means of tackling corruption in public life. We can do things better.

That is why the Social Democrats is so intent on promoting the idea of an independent anti-corruption agency. I very much welcome the support for that proposal as well as the other proposals set out in tonight's motion. I appreciate the support and commitment expressed by various Members of the House. I ask the Minister in the coming weeks to set out a clear implementation plan for all of the actions set out in the motion in respect of the charity sector, but most particularly in respect of the proposal for an independent ant-corruption agency. We have a mandate from this House to move ahead with that and I hope that in the coming weeks we will see the implementation of those proposals.

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