Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

On the substance of the amendment, we seem to have gone off course a bit. There is an investigation by the charities regulator. However, there is also a need for a Government commitment to this issue, not from a taxation point of view but from a broader sense of justice point of view. Deputy Stephen Donnelly described how these are real charities which give some money to funds, although they claim they are giving to others but are not. The moneys are quite small in the context of the amount of money flowing through the vulture funds. In June 2008, the then Fianna Fáil Government decided to exempt these charities from the provisions of the Charities Bill. That was wrong. It is decisions like this that we need to examine again.

The regulations which apply to other charities do not apply to the charities in question. They are still charities and have to provide money, regardless of how much it is, to charitable causes. This is done for facilitating a structure for section 110 companies. There is a need for a Government response along with that of the charities regulator which, hopefully, will be joined up.

When the decision was taken to exempt them back in June 2008, there was not as much focus on section 110. Obviously, they were not involved in buying distressed assets at that time either. However, remaining outside certain provisions of the Charities Bill is questionable. There were arguments for it at the time. Did one want the charities regulator clogged up by all these charities, which really are not charities as we understand them but have been set up to facilitate a financial structure in terms of securitisation? We need to re-examine that area. While it might be beyond the Minister's competence, given the roles they have as section 110 companies, there is a need for the Government to look at this in the round and in light of whatever the charities regulator will find in his examination of the issue.

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