Michael Ring (Mayo, Fine Gael)
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Question 3: To ask the Minister for Community, Rural and Gaeltacht Affairs if he has had discussions with the Revenue Commissioners on an investigation into fraudulent behaviour by charities; if he is satisfied that the Charities Bill 2007 will protect against bogus organisations defrauding the State in the future; and if he will make a statement on the matter. [18976/08]

Éamon Ó Cuív (Galway West, Fianna Fail)
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One of the key purposes of the Charities Bill 2007, which recently completed Committee Stage in Dáil Éireann, is to enact a reform of the law relating to charities in order to ensure accountability and to protect against abuse of charitable status and fraud. It is vital for public trust and confidence in the sector to be safeguarded and maintained. I should clarify, however, that I have no statutory role in relation to the investigation of charities.

In the development of the Bill, my Department, in addition to conducting public consultation processes, has also engaged in extensive consultation with other Departments and statutory bodies, including the Revenue Commissioners, to ensure that the Bill provides a secure legislative base for the regulation of charities. In the case of the co-operation with Revenue, who currently maintain a list of bodies that have qualified for charitable tax exemptions, I am pleased to say that there has been a very productive working relationship. Discussions with Revenue and the Department of Finance in relation to various legal and technical issues that have emerged are continuing in advance of Report Stage, which it is hoped will be taken shortly.

The Bill provides that a new charities regulatory authority will be set up to secure compliance by charities with their legal obligations and also to encourage better administration of charities. A register of charities will be established in which all charities operating in the State must register. It will be an offence for a body not on the register to claim that it is a charity, or to operate or fundraise in Ireland. In recognition of the value of the resource potentially available to the new authority in terms of experience and expertise within Revenue, an amendment was introduced on Committee Stage providing explicitly for co-operation between the new authority and Revenue on the establishment of the register of charities.

The new authority may call for documents and search records, enter premises on foot of a search warrant, impose sanctions, and co-operate with foreign statutory bodies on law enforcement matters. There will also be significant penalties in place. However, while the new authority will determine whether an organisation is a charitable organisation for the purposes of entry onto the register of charities, it will remain a matter solely for Revenue to determine whether any funds applied by organisations for charitable purposes should be granted entitlement to tax exemption.

Michael Ring (Mayo, Fine Gael)
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It is important that the Charities Bill 2007 is returned here for Report and Final Stages. There is already proof of fake mass cards and the door-to-door collection of clothes. The Revenue Commissioners are now investigating charities that are making claims for PAYE workers who are paying into these charities. Did the Minister have discussions with the Revenue Commissioners and when do they expect to complete their investigations? It would be wrong if people give money to charities that are not above board. It would also be wrong for charities to use fake names and claim tax relief from the State, even though no such money has been paid to them. Have many registered charities been struck off the list? Most importantly, when will the Charities Bill 2007 be back in this House?

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Revenue Commissioners are undertaking a routine review of the scheme and have written to 1,100 organisations seeking information in that context. The review is not based on a concern or knowledge that the scheme is being abused and it is not an investigation into suspected fraudulent behaviour in any individual charity. It simply seeks to ensure that charities that have been authorised under the scheme are continuing to comply with the terms of their authorisations. We should accept that is the way it is. Carrying out this exercise sends a signal to people that the scheme must be operated correctly, which is very important.

I am very anxious to proceed with the Charities Bill 2007. We are examining a number of issues and we are trying to strike the right balance. Our objective is to have the Bill finished in both Houses before the summer recess. However, if a better Bill were to emerge following an extra delay, I would have to take that as it comes. We still hope to get it through the Houses before the summer.

Michael Ring (Mayo, Fine Gael)
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A very serious tax scam concerning charities was unearthed in Britain so let us not pretend that it will not happen here. It is important that the Revenue Commissioners carry out a very thorough check.

Will the Department provide information to warn people about fake mass cards and door-to-door collections of clothes for fake charities? These scams make big money and are big business. Dublin County Council sold the rights to pick up clothes to a private company. Liberties Recycling was bringing in drug addicts, retraining them and helping them along, but the county council gave away that business to a private company. I hope that officials from the Department talk to officials from Dublin County Council with a view to doing a deal with the charities to ensure that we can get people back into the workplace again.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I agree with the Deputy. We urgently need this Bill because there is always a risk of destroying the confidence people have in giving to charities by exposing a major wrongdoing. Thankfully, we have a good record of acting with probity, as do the charities. The risk is there and that is what the Charities Bill 2007 is all about. This Bill had been lying around for years and when I came into the Department in 2002 I was determined that it would be published before the election in 2007. We would like to see it enacted before the summer, but it is better to give time to the Bill to get it right. We will deal with it as fast as we can, but we want to get it right.