Jerry Buttimer (Fine Gael)

I move amendment No. 6:

In page 9, to delete lines 38 and 39.

Amendment No. 6 proposes to delete "(c) an approved body of persons within the meaning of section 235 of the Taxes Consolidation Act 1997,". This section of the Taxes Consolidation Act refers to bodies established for and existing for the sole purpose of promoting athletic or amateur games or sports and therefore prevents them from obtaining charitable status. The rationale behind the amendment is to ensure that amateur sporting bodies are not prevented from applying for charitable status under this legislation. In my meetings with sporting organisations I have found that there is some concern that the current exclusion of sporting bodies under the legislation will place the future of amateur sports in Ireland in jeopardy, particularly given the current economic circumstances. There is uncertainty about statutory Government funding, on which many organisations depend, along with charitable support and bequests.

Sporting bodies should be allowed to apply for charitable status on the basis that they fulfil the legal criteria for charitable purpose under the legislation, which includes any purpose that is of benefit to the community. As the Minister knows and as I know, sporting organisations of all hues, particularly small, community-based organisations, play a key role in the advancement of communities and in health promotion, including disease prevention and the tackling of obesity, which has become part of our culture. They also play a part in tackling social exclusion, promoting volunteerism and generally advancing community welfare. I pay tribute to the Federation of Irish Sports, the sporting umbrella body, which does a lot of great work.

Let us boil down the case for this amendment. We have precedent for such a provision in UK law, from which much of our law is taken. The charities legislation in England, Wales and Scotland include such a provision, as does the Bill currently going through the Northern Ireland Assembly. I am concerned that if sporting organisations are precluded from having charitable status, they may be prevented from accessing philanthropic fund-raising streams. The argument will be made that it can be dealt with by reliefs provided under other legislation but, as the Minister knows, tax relief is only available on donations made to certain sporting bodies for the funding of capital projects which have ministerial approval.

Of particular concern is the current economic climate, as there is pressure on Exchequer funding and we have not yet had an announcement about the sports capital programme. We cannot expect sporting bodies to exist solely on funding from the Department of Arts, Sport and Tourism or from some county and city councils. In my own city of Cork, Cork City Council, of which I am a former member, established a sports capital grant for clubs. However, that is now under pressure due to the current economic circumstances. Clubs must have the capacity to raise funds by other means.

The Minister of State, on Second Stage, made the point that it was not his intention to expand or dilute the current charities regime. If I understood him correctly, he asserted that the primary purpose of this Bill was to encapsulate and codify existing laws in the area of charities. Why are we now excluding sport from the scope of this Bill? We are bringing in new legislation which represents a clean slate and a new beginning for all. The legal position as of today is that sports clubs, which are doing valuable work and are of benefit to the community, are not precluded from seeking charitable status. Under this legislation, that will change significantly. The amendments before us are intended to provide a level playing field for all organisations. On one level we have a focus on bricks and mortar, while on the human level the focus is gone or diluted.

I accept the argument that there are different taxation regimes available under the Finance Acts and so on. However, the majority of sporting bodies around Ireland cannot avail of any tax reliefs to assist their organisations. If we are to strive for consistency in the Bill we should include, in the interest of equity, sports clubs as bodies that can have charitable status. We are not doing that, and I do not know why.

We hear from Government about the importance of community involvement, social cohesion and healthy lifestyles. Those things are promoted by sport. Last weekend we had the provincial semi-finals and finals. The Minister of State is involved with his GAA club. Senator Ó Murchú is involved in sport, as are other Senators here. I do not mean to be inflammatory by saying this, but we are discriminating against sport, which is of major importance to the fabric of Irish society. As I said, bricks and mortar are being looked after, but people are not. That is a flaw in the legislation. A sports body can obtain tax relief on the construction of a hall but not on the employment of a coach or philanthropic donations.

I understand the Minister has received advice from the Office of the Attorney General and that the Revenue Commissioners and the Department of Finance have issues with the loss of revenue to the Exchequer if sports bodies are permitted to come within the scope of this legislation. However, if we include sport under the legislation, it will allow sporting bodies to attract money which is at present going to other charitable organisations and which will have an ongoing beneficial effect for the Exchequer. I hope the Minister will reconsider this. I made it clear in my remarks that we do not want to divide on this Bill, because it is a good Bill. However, there is an issue with sporting bodies. I hope what I have said here will move us forward in this regard.