Feargal Quinn (Independent)

I thank Senator Bacik. One of the points I was going to make related to human rights and now that Senator Bacik has done so, it takes the onus off me. I welcome the Minister of State, Deputy Curran, and the Bill. We should have had it a long time ago.

Over the years, when confronted by a big bucket or box, I never knew how many cent from the €1 euro donated would go to the charity. When I was a member of a charity board I began to ask how much of the contributions given went to the charity. I found I was no longer on the board the following year, so clearly I was asking the wrong questions.

I wish to make three points. I am especially concerned about section 485C of the Taxes Consolidation Act which puts a cap on tax relief given to charities. I can understand how that came about. I remember well when it became apparent that some wealthy people were not paying any tax. A Member of the Opposition said that was outrageous and the Minister resolved to sort out the issue, and he did. The trouble was that in closing all those other tax-efficient methods, for some reason or other he included philanthropy, in other words, the giving away of one's money. That should not have been included. I am sure that was a mistake and it can be easily corrected. I suggest that to delete the cap on charitable donations would be at a small cost to the Exchequer and would be a considerable aid to the marginalised in society.

Section 485C of the Taxes Consolidation Act is a crude instrument that fails to differentiate between tax-driven incentives for infrastructure such as car parks and nursing homes, where the taxpayer acquires a beneficial asset, and philanthropic initiatives from which a donor receives no economic gain but rather personal fulfilment. I believe that measure was a mistake and it should not have been included, but I can understand how it came about. The clause suggests a poor awareness of how official Ireland could and should make much better use of the power of philanthropy. I have argued that point previously and I am not sure I am fully understood. I do not believe it was the intention of the Minister for Finance at that time when he resolved to ensure wealthy people would pay some tax to include those who want to give their money away.

The other issue that has been mentioned is the scam of bogus pre-signed mass cards. The Minister of State has heard about that because the bishop has been in touch with us. I wish to highlight the massive scam of bogus mass cards for sale in shops throughout the country. The Bill should make it compulsory for shops that sell mass cards to display charity registration numbers and perhaps even contact numbers to halt the sale of bogus mass cards. I accept the matter has been discussed but I believe in a number of cases it was found that the mass cards on sale were questionable. One priest had been dead for two years and in another case a priest somewhere else in the world received approximately 12 cent from the sale of a mass card that retailed for €4. We clearly must do something to solve this problem. They are fraudulent cards and are very offensive to those who carry out the work of the church. They upset many people who believed they were doing the right thing and they hamper many generous efforts.

Additional wording should be inserted in the Bill so individuals will not be discouraged from becoming voluntary directors of a charity. The Bill holds directors liable for the failings of a charity in certain instances. This could have a detrimental effect on the charities sector and, in particular, may discourage one from becoming a voluntary director of a charity. Directors are liable where there is a withdrawal of previously agreed State funding and on the creation of any new legislation or regulations that would create additional costs for the charity when providing State-funded services. This seems like a very large burden on the voluntary directors of small charities and acts as a disincentive to those who would otherwise love to become a director of a charity. The following alternative wording has been suggested:

Any default in the relationship/agreement between the charity and the State agency or public body whereby the charity would be at a loss would not be counted as such where the charity has little or no option but to comply with standards or practices set out by the particular body. In such a case, the individual trustees or directors of the charity cannot be held liable.

This would be fairer and would encourage people to become voluntary directors of a charity and not to be dissuaded due to the liability placed on them if the charity got into difficulty. This issue needs to be examined more closely by the Minister of State and I would welcome his doing so.

The point on sport has been already made. The Charities Bill, as currently drafted, specifically excludes "bodies established for and existing for the sole purpose of promoting athletic or amateur games or sports". I imagine the Minister of State will claim this is already covered in separate sports measures that are operating effectively. This is not so because, under the Finance Act 2002, a very restrictive form of tax relief was introduced in respect of sports organisations. Tax relief is only available for donations made to certain sports bodies for the funding of capital projects that have ministerial approval. An absurdity arises whereby tax relief on donations is available in respect of a sports club that secures ministerial approval or designation in respect of the planned construction of a sports hall but, in that sports club and in respect of that same sports hall, tax relief is not available in respect of donations towards the engagement of a sports coach.

Sport has a key role in the promotion of health and the prevention of disease. It is a primary vehicle for active citizenship and volunteerism in the community and it advances community welfare and development. The National Development Plan 2007-2013 states, "Participation in sport, whether at the level of competitive sport, recreational sport or active leisure activity can yield physical and psychological well-being as well as fostering social development both in terms of the individual and the community." The national development plan recognises the role of sport in building stronger communities. I am sure the Minister of State will claim this is covered elsewhere but I do not believe so. The example I have outlined is but one example of an area in which we could go further.

The Bill, while it needs to be improved, is very worthy. I congratulate the Minister of State on his effort in introducing it. Let us ensure we perfect it and that it addresses all the loopholes such that the community as a whole can benefit.