Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 219: To ask the Minister for Justice and Equality the reason he has not commenced the 2009 Charities Act, which refers to a sector worth €6 billion and employing a similar number of people as multinationals based here. [8728/12]

Alan Shatter (Dublin South, Fine Gael)
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In taking on the charities regulation function, in the context of the reorganisation of Government Departments in May last year, I recognised that full implementation of the Charities Act 2009, which would necessitate the establishment of a new regulatory body for charities, presented a challenge, particularly given the moratorium on public service recruitment.

The Irish Government, under the agreement with the Troika, is committed to reducing public service numbers, not increasing them. It is committed to increasing the efficiency of service delivery, which the Government is doing, for example, in the case of the legal profession. It is committed to reducing bureaucracy, and reducing the number of State bodies and eliminating duplication.

The Deputy will appreciate that the implementation of the Charities Act 2009 had to be considered in that overall context. On balance, I considered, within the comprehensive review of expenditure, that it was not practicable to proceed with the full implementation of the Act at this time given the financial and staffing resources that would have been required, hence the implementation of the Act has been deferred.

I would like to reassure the Deputy that it is not the case that charities in Ireland are currently devoid of oversight - charities are already subject to scrutiny by various State bodies. The Revenue Commissioners have granted charitable tax exemptions to almost 8,000 charities, and they have significant powers to help them to ensure that such charities comply with tax law. A full list of eligible charities is available to the public at www.revenue.ie. Many charities are companies limited by guarantee and, as such, are also subject to the provisions of company law and are generally required to provide information to the Companies Registration Office under the Companies Acts, which can be accessed by the public. Such charities would also potentially be subject to scrutiny by the Office of the Director of Corporate Enforcement. Charities that take the form of a trust are subject to the provisions of trust law. And, of course, any business entity is subject to general criminal and fraud legislation.

I am also committed to developing approaches, within available resources, to enhance the transparency and oversight of the Irish charities sector, in order to maintain public confidence, and to help to develop a climate of philanthropic giving in Ireland. For example, my Department is supporting the development of Codes of Practice to regulate charitable fundraising in partnership with the charities sector through Irish Charities Tax Reform Ltd (ICTRL), an umbrella body for the sector. The new Guidelines and Code of Practice for fundraising were developed after extensive consultation with industry experts and stakeholders including charities, non-profit organisations, legal and financial advisers, donors and academics. These Codes are intended to complement the statutory regulation of collections that is administered by An Garda Síochána under the Street and House to House Collections Act 1962.

The Deputy will note therefore that it is certainly not the case that the sector will be unregulated pending the implementation of the Charities Act 2009 when circumstances permit.