Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

I thank the Senator for raising this important issue. Needless to say I am deeply concerned by the recent revelations about Console. I know that people rely heavily on its services and I am pleased that the HSE is ensuring a continuity of its services in the first instance. It is essential, as the Senator said, that all organisations funded by the State are regulated and managed in an appropriate manner. Likewise, all moneys donated by the public must be managed appropriately and in line with good corporate governance. Anything less is a betrayal of the goodwill of thousands of people around the country and, indeed, of the taxpayer.

I say betrayal because people's trust has been betrayed. The unwritten agreement between the charity and the people that the people's money will be efficiently and appropriately used has been broken. The betrayal also reaches to the collective trust charities place in one another to uphold good governance, standards and public confidence in the sector. The details the Senator has outlined are particularly disturbing.

For the Government's part, it is essential that we progress the regulatory reforms we proposed in recent years. As Senators are aware, Part 4 of Charities Act 2009 deals specifically with the charity regulator's investigatory and enforcement functions. Pending the commencement of Part 4, the regulator has put in place - I worked with him last year on this - an interim process for the handling of concerns received about suspected abuse of charitable status or fraud in charities. However, having had discussions with the regulator and with my officials, I can confirm to the Senator that today I am signing the necessary statutory instrument to commence Part 4 to take effect from 5 September 2016.

The Senator asked about the delay. This commencement date is to allow for the recruitment over the coming weeks of the necessary staffing resources to support these important functions. I am also examining the legislation to see if there is any other provision. I think the Senator mentioned section 17. I am examining that to see if it can be brought in quickly as well.

The establishment of the Charities Regulatory Authority was one of my priorities when I first became Minister for Justice and Equality. Shortly after becoming Minister, it was established as an independent agency on 16 October 2014 under the provisions of the Charities Act.

To go back on the history, the Senator is right that the Act was introduced by the Fianna Fáil-Green Party Government. It provided for the regulator. Its establishment was delayed because of the economic situation for quite a number of years. However, the previous Government and I, as Minister, were determined to establish the regulator to restore confidence in the charity sector after a number of other controversies. I wish to make the following point as it is very important we all appreciate this, as I am sure Senators do, but regulating a large, previously unregulated sector is a challenge.The scale of the job, about which I will provide some facts, is not to be underestimated. However, there has been significant progress. As the Senator will be aware, the aim of the Charities Regulator is to provide for better regulation of charitable organisations through a framework of registration, regulation and support. This is intended to enhance public confidence in the vast majority of charities that do immense and essential work. The regulator has a wide range of functions which we could not introduce all at the same time. It had to be done on a phased basis, beginning with the compilation of the new statutory register of charities. That was a development of the regulator. Some 8,000 charities were registered with the Revenue Commissioners and they were transferred to the Charities Regulator immediately once it started registering the authority. In addition, any of the charities that had not registered with the Revenue Commissioners had to apply directly to the regulator. Much time was spent last year encouraging charities to register and making sure that they did so. The take-up was very slow at the beginning but another 1,500 applications came in following the work done by the regulator to make sure that charities registered. It was necessary to register 3,600 schools that are also registered for charitable status. A huge amount of work has, therefore, been done already. Investigations cannot begin until registration is in place and until the charities around the country are known. The regulator has developed an online system for organisations to apply for inclusion on the register of charities and for information to go out to the charity sector on its obligations and duties under the new regime.

The Senator will, therefore, recognise there is quite a bit of work to be done, given the number of charities in this country. There are more than 12,500 charitable organisations. The regulator has received approximately 300 concerns over 132 different entities, the majority of which are charities. These concerns cover the entire scale, from issues to do with an organisation's purpose to the quality of service provided to a passing comment about somebody not agreeing with the goal of the charity. Often, therefore, concerns raised with the Charities Regulator are matters to be pursued by other bodies as well. These concerns relate to about 1% of the total number of charities in the country.

Many charities are companies limited by guarantee. These are subject to the provisions of company law and are generally required under the Companies Acts to provide certain information to the Companies Registration Office. There are, therefore, quite a number of bodies that have responsibility for charities and how they are run. In addition, for example, if there is criminal activity, such as fraud, that is a breach of the criminal law and could and would potentially be investigated by An Garda Síochána. Where there is a fraudulent situation, there is clearly a role for An Garda Síochána. We have, therefore, seen a lot of co-operation between the necessary bodies in recent times.

The Senator asked about resources. Significant additional resources - a budget allocation of €2.665 million, representing an 88% increase over 2015 - was given by my Department for 2016. That includes additional funding of €1.25 million, which is supporting expansion in the level of staffing and other resources and these are all the building blocks we need to have in place to ensure compliance. I want to reassure the House that I recognise the urgency of making sure that the Charities Regulatory Authority is up and running with all its functions and with the resources it needs.

I want to draw the attention of Senators to a quotation from Seán Moynihan of Alone:

When people choose to support a charity they do so because they are inspired by the work it does. People are moved by stories that reach into their hearts and connect with them emotionally ... However, we also know that we need to link these stories to comprehensive information about where your money goes, the number of people we support and the manner in which we support them. All charities should be judged on their impact and effectiveness, not just on an emotive story; we must value those that have quality standards, are accountable and transparent.

Recent controversies give real pause for thought about the current charity landscape in Ireland. For example, are clients best served by having large numbers of charities to choose from, each providing similar services and each expected to operate on the basis, obviously, of proper corporate governance structures?For example, are clients best served by having a large number of charities, each providing similar services and expected to operate on the basis of proper corporate governance structures, from which to choose? This country needs a conversation on these issues and how we can best support the ongoing development and regulation of the charity sector. We want to tap into the vast resources and expertise that are available as well as people's willingness to volunteer, but that needs to be managed. When it is not managed properly, major issues arise with trust in the sector.

Charities receive significant State funding, and it is upsetting that people, including the thousands of good people who work in and contribute to the vital services provided by the charity sector, are being let down by poor governance standards in parts of it. This undermines confidence in a sector that relies on good will.

I assure the House that I will prioritise the role of the charities regulator and ensure that it has adequate powers and resources to sustain and promote the thousands of charities around the country. With the announcement of Part 4 commencing in September, today marks another step forward in the better governance of the sector, but I emphasise the scale of the challenge facing the regulator, given the number of charities and the fact that they have not previously been regulated to any degree.