Catherine Byrne (Dublin South Central, Fine Gael)
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I thank the Ceann Comhairle for choosing this matter and I thank the Minister, Deputy Shatter, for attending personally. This matter was raised in the Chamber during the Order of Business but today I wish to speak about how it is affecting legitimate small businesses and charities in the community I represent.

I wish to speak specifically about Liberties Recycling, Training and Development, which is based in Bluebell. This organisation began in the inner city in 1999. It is a small, non-profit, community-based project which operates a clothing and recycling social enterprise and charity that reaches out to help people who are recovering from drug addiction. It offers them employment as well as the chance to return to education and training. At present, Liberties Recycling employs 62 people, who recycle and collect, and sort and pack grades of clothing and footwear, for reuse in markets in developing countries and for processing for use in mattress-making and insulation. Cotton material is put into bales for usage by local customers, including Dublin Bus, motor factoring companies and cleaning companies. Representatives collect clothes through their network of clothing recycle banks and schools, by door-to-door collections and through agreement with charity shops such as those run by the Irish Cancer Society.

Currently, the organisation has 145 textile banks located around the country. However, in the past 12 months more than 80 of these have been damaged by unknown individuals. As a result, since last January there has been a loss of revenue to the project of approximately €200,000. In the past two years the loss in revenue has mounted to the staggering total of more than €600,000. This money would have been invested back into the organisation to create employment and run training programmes for the individuals involved. Each year more than 100 people receive certificates in subjects as diverse as fork-lift driving, computer applications, mathematics and payroll, as well as for participation in reading and literacy projects. In recent years thousands of young people who otherwise would have been caught up in the drug culture in their communities have gained work through this project. Some of them are now well placed in long-term work throughout the city.

The recent surge in thefts from the clothing banks means there is a realistic chance that Liberties Recycling might face closure, which would be a major blow to the community I represent in the Ballyfermot-Drimnagh-Crumlin area. For those who use the centre, it is a lifeline. The recent "Prime Time" programme in April highlighted the issue of thefts and illegal profiteering from charity clothing banks. It showed organised criminal gangs were stealing clothes from these banks, often damaging them in the process. Some charities are being brutally targeted by criminals and are at their wits' end as to how to continue and counteract such attacks on their business. We urgently need to address this problem. Recycling facilities such as Liberties Recyling, which gives opportunities to young people who normally would not have them, are in need of a response.

Alan Shatter (Dublin South, Fine Gael)
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I thank the Deputy for raising this important issue and for praising the work undertaken by Liberties Recycling. I am very aware of the difficulties that charities can face when raising funds to support their work, especially in the current financial climate. This was highlighted in the "Prime Time" programme on this topic, which was broadcast a number of weeks ago. As I did in the Seanad, I congratulate "Prime Time" and RTE for their careful investigative work in revealing and bringing to public attention the activities of an organised gang targeting clothing banks. Burglary, theft and all types of criminal activity are, of course, to be condemned. However, there is something particularly nasty, callous and cynical in the actions of those who steal, for their own benefit, charitable donations intended to help those in need.

As to the revelations contained in the "Prime Time" broadcast, I have requested a specific report from the Garda Commissioner in regard to this type of crime and will give very careful consideration to the Commissioner's views and to any suggestions he might make in this regard. It is important that the Garda target and bring to justice those who are engaging in this despicable type of criminality.

I assure Deputy Byrne that I fully appreciate the need to protect the fund-raising ability of charities, including charities that have chosen to support their fund-raising efforts through the operation of clothing banks. I am determined to ensure that the donations of clothes and other items, so generously given by members of the public in the belief that they are supporting a charity and helping those in need, are not diverted by theft, illegal profiteering or other illegal activities.

The Criminal Justice Acts contain the necessary measures to address theft from charity clothing banks. Theft, including theft from charity clothing banks, is an offence contrary to section 4 of the Criminal Justice (Theft and Fruad Offences) Act 2001. A person convicted upon indictment of theft is liable to imprisonment for up to ten years and-or an unlimited fine.

While theft from charity clothing banks is clearly a criminal issue, the topic for this debate also concerns the wider issue of public trust and confidence in charities. The recent revelations in the "Primetime" programme regarding the proportion of profit from charity clothing banks that actually reaches the charitable cause with which the bank is associated is also a cause for concern. Such revelations are a disincentive for people to donate and can have a negative impact on donations to charities, including donations to charities that go to great effort to ensure that the maximum proportion possible of proceeds from donations is used for charitable work.

Members of the public are entitled to know what financial benefits charities receive from such donations. Until the recent revelations by "Primetime", many donors to charity clothing banks may have been under the impression that all proceeds went to the charity. I believe there is a need for greater transparency when it comes to arrangements charities may have with commercial companies concerning the operation of clothing banks. Where a charity is lending its name to a clothing bank and by doing so is encouraging members of the public to donate, they have an obligation to indicate clearly what financial benefit they are receiving from this arrangement.

Supporting public trust and confidence in charities is the core objective of the Charities Act 2009, which was enacted to introduce a system of statutory regulation of charitable organisations. While the Act does not deal directly with the regulation of Irish clothing banks or collections, it contains measures aimed at preventing the abuse of charitable status. When brought into force, these measures will support the efforts of the relevant authorities in addressing the difficulties surrounding theft and illegal profiteering from charity clothing banks. Under section 46 of the Act, it is an offence for an organisation that is not a registered charity to describe itself or its activities in such terms as would lead members of the public to reasonably believe that it is a charity. This Act, when implemented, will help to safeguard that vital public trust in charities.

While full implementation of the Charities Act 2009 and the creation of a register of charities have been delayed for financial reasons, the Government remains

committed to progressing its implementation and putting in place a dedicated regulatory framework for charities in line with the provisions of the Act. My Department recently conducted a public consultation on the implementation of key provisions of the Act on a phased and low cost basis. The submissions received are currently being reviewed and I look forward to publishing the outcome of the consultation in due course and to providing further information on the timeframe for the introduction of an operational charities regulatory authority and creation of a statutory Register of Charities as provided for under the Act.

Charitable organisations play a key role in communities throughout the country. It is in all our interests to ensure that they continue to do so. This includes protecting genuine fund-raising efforts against any who might wish to exploit the goodwill and generosity of the public. I thank Deputy Catherine Byrne for raising this topic. I appreciate the real concerns expressed by Liberties Recycling and I will draw to the attention of the Garda Commissioner the specific difficulties they are experiencing, as described by the Deputy.

Catherine Byrne (Dublin South Central, Fine Gael)
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I thank the Minister for his response and welcome that he has requested a report from the Garda Commissioner on the activities of gangs. These charities are not getting their fair share of the profit. Has a timeframe been set for the completion of the report and, in the meantime, has the Garda made any suggestions on secure clothing banks? Is the Minister willing to meet representatives of these organisations to discuss their ongoing problems? I understand people are deciding against putting their clothes in banks, which leads to further problems in respect of the amount of material being made available to these projects.

Alan Shatter (Dublin South, Fine Gael)
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I have no difficulty in meeting representatives of charities which raise funds in this way. I expect to receive a response from the Garda Commissioner in the not too distant future. I did not set a specific timeline for his response because it is important that he has an opportunity to make any inquiries he needs to make. I am conscious that a large number of charities operate clothing or textile banks around the country. There are thousands of such facilities and I recognise the particular difficulty that arises in securing them. In the early years of their existence people respected the work done by charities out of a sense of decency. The type of events we have seen over the past two to three years were not occurring but it seems they are now on the increase and that the individuals engaged in this criminality have no respect or thought for those who are genuinely in need or who give freely of their time to raise funds, or organisations doing the type of work in which Liberties Recycling is engaged.

I do not know whether these clothing banks could be constructed in a manner that better secured them. Having donated to banks, I am conscious of the size of the opening into which clothes are placed and the ease of accessing their contents. I do not know whether additional thought needs to be given to putting content in without being able to take it out. There may be some mechanical way of addressing that issue. Unfortunately, if people are intent on criminality, it seems that nothing is sacrosanct nowadays and they will engage in such conduct. This is an issue on which the Garda may have interesting or important observations and the charities themselves may also wish to consider it collectively. I would be happy to communicate further with Deputy Catherine Byrne when I receive the expected response from the Commissioner and I am more than happy to meet with any group to discuss the issue. Perhaps such groups would share with me their thoughts on how clothing banks could be better secured.