John Curran (Dublin Mid West, Fianna Fail)

It is clear from the amendments tabled that there is a great appreciation throughout this House of the vital role trustees play in the operation of charities. I am aware of the need to protect the interests of trustees of charities and I wish to ensure they are not made unfairly liable for commitments into which they enter on behalf of charities in all good faith. I wish to ensure that those engaged in charity work can undertake the role of trustee without being worried that such a role might have negative financial implications for them.

I already have amended the Bill to enable charities to use charitable funds to indemnify trustees against personal losses arising where they have acted in good faith. Even though Opposition Members welcomed the insurance provision, it was considered that there may be a high cost involved in taking out such a policy, particularly when potential liabilities might be considerable. Accordingly, Opposition Members have tabled amendments on Report Stage, as they did last week, in respect of trustee liability. I agreed to reflect on this matter and have done so in consultation with the Office of the Attorney General. My advice is that a trustee could be liable only where there is a breach of fiduciary relationship by the trustee with the content of the trust deed. Where a trustee acts in good faith in carrying out its business with a body such as a statutory body, I understand there is no way the trustee would be personally liable. Nonetheless, for the removal of doubt, Government amendment No. 62 will introduce a new section 89 to deal with the issue raised by the Opposition amendments. By allowing the court to grant relief to charity trustees from personal liability for a breach of trust where the trustee has acted honestly, reasonably and in good faith, I am confident that this will offer reassurance to those who act as trustees to charities or who are contemplating such a role. Although I cannot accept the Opposition's amendments as worded, I thank Members for raising the issue. I hope the Government amendment, which has been tabled on the advice of the Attorney General, will address the issue.