Brian Hayes (Dublin South West, Fine Gael)
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Question 363: To ask the Minister for Community, Equality and Gaeltacht Affairs his plans to bring forward the commencement orders in connection with the Charities Act to enable the act to become operational; and if he will make a statement on the matter. [45839/10]

Pat Carey (Dublin North West, Fianna Fail)
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The Deputy will be aware that the Charities Act 2009 is structured in such a way as to allow for commencement, by Ministerial order, of its individual provisions on different dates over a period of time. However, commencement of the majority of the Act is contingent on a Charities Regulatory Authority being in place.

My Department has developed an implementation plan for the Act, which will ensure that the essential elements are in place to enable the introduction of the statutory regulatory framework provided for in the legislation. The drafting of regulations in anticipation of the establishment of the new Charities Regulatory Authority is, of course, a key part of that work.

My Department is in ongoing discussions with the Department of Finance regarding the resourcing and establishment of the new Authority and I hope that it will be possible to make progress on this aspect of the matter in the coming months.

The Act also provides that any organisation that holds charitable tax exemptions from the Revenue Commissioners on the day the Register of Charities is introduced will be automatically deemed to be entered onto the Register, and thus such organisations will not have to apply to the new Authority for registration. In co-operation with the Revenue Commissioners, my officials are working to ensure that the information legally required to be published on the Register of Charities will be in place on establishment day. As there are well over 7,000 such organisations, the Deputy will appreciate that there is a considerable body of work to be done in this regard alone.

Another aspect of the implementation process is delivering on the commitment to consult with the charities sector in relation to the type of financial and activity reporting that they will be required to make to the new Authority. This consultation is to be carried out parallel to, and will most likely be informed by, a broader review of the UK & Ireland Generally Agreed Accounting Principles (GAAP) that is being undertaken by the Accountancy Standards Board at the moment. In this context, my Department hosted a successful conference on this issue in January 2010 in Dublin Castle.

The Deputy should also note that: Section 99 of the Act, which regulates the sale of pre-signed Mass cards, came into effect from 1st September 2009. It has been the subject of a constitutional challenge, which failed in the High Court, but which, I understand, is to be brought before the Supreme Court; and Sections 4 and 90 (SI No 315 of 2010) of the Act came into effect on 26th June 2010. Section 4 allows for Ministerial orders or regulations under the Act. Section 90 makes provision to grant powers in any proceedings to the courts to grant relief to charity trustees from personal liability for breach of trust, where the opinion of the court is that, while the trustee may be liable for the breach, he or she acted in good faith and ought to be excused. In such circumstances, the court may then grant relief in whole or in part under the provisions of section 90 of the Act.

In other countries, for example in Scotland, it has taken a number of years after enactment of the legislation for the new regulatory system for charities to be formally introduced and this, I believe, will be the case in Ireland also. I can assure the Deputy, however, that my Department will continue to advance the process, through its implementation plan for the Act, of ensuring that the essential elements are in place to enable the introduction of the statutory regulatory framework at the earliest possible date.