Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Justice and Equality his plans to regulate the charity sector to ensure accountability and transparency in its operation; and if he will make a statement on the matter. [41740/12]

Alan Shatter (Dublin South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Charities Act 2009 provides for an integrated system of mandatory registration and proportionate regulation and supervision of the charities sector in Ireland. The various sections of the Charities Act are subject to implementation through commencement orders. Sections that it was possible to commence in advance of the establishment of the Charities Regulatory Authority, as provided for under the Act, have been commenced. The remainder will be commenced following the establishment of the Authority.

The Deputy will appreciate that the full implementation of the Charities Act, including the establishment of the Authority, had to be examined in the context of the comprehensive review of expenditure, which took place last year. Arising from this review, and in the context of the need to reduce Government spending, I took the view that it was not possible to proceed with the full implementation of the Act at this time given the likely scale of the financial and staffing resources then envisaged, and that this should be deferred. In light of this decision my Department is currently examining options for resource efficient ways of making progress towards the objectives of the Charities Act.

It should be recalled that there is, at present, a range of regulatory oversight measures that can apply to charities. Many charities are already subject to scrutiny by various State Bodies. The Revenue Commissioners have granted charitable tax exemptions to almost 8,000 charities and have significant powers to ensure that such charities comply with tax law. A full list of these 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 certain information to the Companies Registration Office under the Companies Acts. This information can then 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.