Lorraine Higgins (Labour) | Oireachtas source

I thank the Minister for coming before the House to discuss the charities sector and the recent difficulties in which charities have found themselves. The sector includes an estimated 12,000 non-profit organisations, of which 7,000 have charitable status. The combined figure of employees in the sector stands at more than 100,000 and charities also have more than 560,000 volunteers on their books. Their total annual income amounts to approximately €6 billion. All of this presents a logical case for protecting charities and taking progressive action.

The recent scandals which engulfed a number of charities, specifically the charity associated with the Central Remedial Clinic, have sickened donors and the wider public. Unfortunately, they have also had a detrimental impact on charities' ability to fund-raise across all areas. The sector is facing mounting financial pressures at a time of increasing demand for their services. In recent months, charities and groups have had to work with scarcer resources and are struggling to attract new support and funding as a consequence of events which have mired the charitable scene. Coupled with this, many middle and low income households are faced with stagnant incomes, leaving them with less to spend and much less to give. A further demonstration of the effect of this is the fact that prior to the scandals which emanated from the media before Christmas, almost 60% of organisations had experienced a decrease in income in the past three years, while two thirds of non-profit organisations had experienced an increase in beneficiary numbers in the same period. According to Fundraising Ireland, donations to charities fell by 40% over the Christmas period.

Indeed, according to Fundraising Ireland, donations to charities were down 40% over the Christmas period. I know from my involvement in a local campaign with two well-known Irish charities that they raised an absolute pittance. I spoke to one of the regional organisers of an organisation that does great work with the elderly in the west who told me it raised less than €1,000 over a seven-day period. This would have been a pittance to that organisation in times past. Unfortunately, that was all people could muster up over the period in question. This is regrettable in light of the demands on the services in question. If a business were to sustain such a decrease in revenue, it is fair to say it would be faced with closing its doors. Charities, many of whom for the most part provide essential support services for their benefactors, are no different.

There is no doubt that the Charities Act 2009 will play a vital role in ensuring the revival of the charity sector, the effects of which need to be felt now more than ever. The forthcoming appointment of a charities regulator will also be of assistance. It will result in increased transparency and accountability for charities operating in this country. Having spoken to representatives of charities that are based in my local area, I am aware that they welcome this move. It will certainly give people the confidence to start donating again. Given that the charity sector receives millions of euro in funding from the Government and the public each year, it is imperative that the Government, in addition to fulfilling its role as the custodian of taxpayers' money, ensures the sector is regulated and overseen. Unfortunately, we have learned recently that a lack of regulation or enforcement can present the Government and the charities themselves with significant problems. While we are awaiting the establishment of the charity regulator's office, we can ensure wrongdoing is being eliminated in other ways.

I spoke a few weeks ago in this House about a special edition of "Prime Time" that was broadcast before Christmas. It focused on a charity called Victory Outreach, which used pretty appalling practices when dealing with heroin addicts who were attempting recovery with it. It forced those who came to it for assistance to work for up to 18 hours a day to raise funds for it, with daily targets and no pay. The addicts had to give the charity between €80 and €150 every week from their social welfare payments. Victory Outreach allowed service users to go cold turkey, which is not advised by experts who work in addiction. The residents were not given chemical assistance or professional counselling. They were told to use prayer as a way of getting over their addictions. They were also told to stop taking their prescribed medication. This is an absolutely appalling abuse of human rights by a so-called charity, which started working in Ireland in 1997 and operates up to five recovery homes in this country. As it is clearly operating in a market in which supply does not meet demand, it has learned to abuse its special position.

To make matters worse, I understand the Irish courts are referring people who come before them to Victory Outreach. I implore the Minister for Justice and Equality to take action in this regard. I acknowledge and accept that delicate issues relating to the separation of powers arise in this regard. Somebody somewhere has to stop this practice from going on. While addiction services that are funded by the HSE are required to meet minimum standards, Victory Outreach is not funded by the HSE, which means there is no provision in law for the regulation of its residential treatment or rehabilitation centres specialising in addiction. It is most regrettable that organisations like Victory Outreach are allowed to operate outside standard practice. The charity's much-maligned practices were highlighted recently in the charity's US organisation, where a contractor was paying illegally low wages to workers from the church, as it calls itself, to renovate hotels. I am fearful that its lack of morality and scruples might cause Irish service users to be subjected to the same or similar treatment or human rights abuses. For that reason, I ask the Minister for Justice and Equality to look into this operation and take whatever action he considers necessary to protect those who most need to be protected.

I am a fervent supporter of the great work done by many charities in this country. I try to make whatever impact I can by raising funds for a number of them. I recognise the important role that Irish charities play at local, national and international levels. As a public representative, I have engaged with many charities and their services on behalf of my constituents. Their readiness to help and their impact must never be under-estimated. They are of critical importance to every small town and village in this country. Their tentacles stretch as far as delivering services in health, social services, education and emergency relief. From an international dimension, we must not forget the part Irish charities play in keeping Ireland's international reputation right up there among the most benevolent countries in the world. Two and a half years ago, I was lucky enough to travel to Ethiopia as part of an Oireachtas delegation. I got to see the work being done by some of the fantastic charities that are being funded by Irish Aid. I have first-hand experience of the work of this sector throughout Ireland and in sub-Saharan Africa. This cannot be underestimated when it comes to alleviating crises in war-torn and hunger-ravaged countries.

Some people have spoken here about the Charities Act and the fact that it will ensure greater accountability for charities, protect against the abuse of charitable status and fraud and enhance public trust and confidence in charities. These are all very important reforms, not least because charities constitute a sector in Irish life that suffers from a high degree of mistrust on the part of the public as a result of the scandals that unfolded recently. In the absence of the enforcement of the legislation, we may well have contributed to usurping the trust that has been built up between the public and charities. I know this legislation was drafted well before the Minister came into office and certainly the recession and the difficult economic times in which we found ourselves made it very difficult to make any real progress in this area. To that end, we must ensure that the entire sector and the goodwill it attracts from the public are not decimated as a consequence of any further financial scandal raising its ugly head. That is something we should be keen to avoid so that all genuine charities, of which there are many, that are working very hard for their respective causes can continue safe in the knowledge that their sector is properly regulated and free from such risks. It is vitally important that we uphold the highest possible standards when it comes to charities so that they can benefit from their own high standards and the trust of the public as a consequence.

While I have focused up to now on the pioneering rules about to be enforced, I take the opportunity to acknowledge and laud the great work being done by organisations such as Dóchas and The Wheel among others who have endeavoured to voluntarily change the standards applicable to the not-for-profit sector. They have shown great initiative in their own individual endeavours and the spearheading of a governance code for community, voluntary and charitable organisations is indeed a wonderful feat. While their efforts go some way towards initiating a charter for charities, it is imperative for us as a Government to help complement their efforts without delay.

I welcome the opportunity to contribute on this issue and hope some of the issues raised by me and other group members will be taken on board by the Minister. It is imperative that the Government and the not-for-profit sector work together in solidarity to achieve the same goals of transparency, accountability and value for money. That is the only way we can all move forward together. I take the opportunity to welcome visitors from Rotary Ireland who are in the public gallery today. I had the pleasure of speaking with them earlier. I wish them well in all they do.