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Dáil Éireann debate -
Wednesday, 23 Oct 2002

Vol. 556 No. 1

Priority Questions. - Regulation of Charities.

Brian O'Shea

Question:

46 Mr. O'Shea asked the Minister for Community, Rural and Gaeltacht Affairs his views on the recent Law Society report recommending changes in the way in which charities are regulated; his plans to bring forward legislation to reform this area; and if he will make a statement on the matter. [19310/02]

By way of background, the recently published Law Society Report on Charity Law is a welcome contribution to the process of reforming this important body of legislation and will be considered in that context. Responsibility for charity regulatory matters, including charitable fundraising, and the Commissioners of Charitable Donations and Bequests was transferred to the former Department of Social, Community and Family Affairs on foot of a Government order of 27 July 2001. This decision arose from the recommendations of the White Paper on a framework for supporting voluntary activity and for developing the relationship between the State and the community and voluntary sector, published in September 2000, which took the view that this role would better complement the community brief of the Department. These responsibilities were transferred to the Department of Community, Rural and Gaeltacht Affairs in June last.

The White Paper on supporting voluntary activity also set out the Government's commitment to ensuring the introduction of comprehensive legislation on regulation of charities and charitable fundraising. The work of reviewing the legislation which is currently under way in my Department will be accompanied by broad public consultation on the appropriate regulatory framework and the nature and extent of the legislative reform required.

The then Department of Social, Community and Family Affairs engaged consultants in January 2002 to undertake an examination of aspects of charity law, including a review of the literature on Irish charity law and a study of the regulatory environment in other jurisdictions. I expect the report to be finalised in the coming weeks. It is envisaged that a consultation phase involving widespread public consultation with interested parties will form part of the reform process. To assist in progressing this phase of reform a consultation document will be prepared to encourage public discussion on the nature of the legislative reform required. Proposals for legislative reform in regard to charities and charitable fundraising will be brought forward as soon as possible following completion of the consultation process.

I thank the Minister of State for his reply and, as this is his first time to answer questions in the House, I wish him every success in his new Office. The question as to what constitutes a registered charity is an important one and, unfortunately, there is a deficit of law in that regard at present. I am heartened to hear that the new Department of Community, Rural and Gaeltacht Affairs is taking it seriously. How does the Minister of State reconcile his statement that a consultation process is about to be embarked upon with the entry in the list of promised legislation indicating that publication of the Charities Bill is expected in 2003? Is that a realistic target in the light of what he has said with regard to consultation? Also, with regard to the statement that reformation will be along the lines of the Costello report, the Minister of State seemed to indicate that the Costello report may be amended somewhat. Accordingly, my basic question is whether the 2003 target is realistic.

All I can say at this stage is that it is a target but I accept it is a long process. The Deputy mentioned the Costello report and there was also a Burton report which highlighted the same issues, more or less. The 2003 target may well be an optimistic one. It would be pointless for the Department to rush some proposals forward without bringing everybody on board. There are many interested groups and it is also important to have a wider public involvement. There is a long tradition of Irish charities operating both at home and abroad. We do not wish to introduce an unduly bureaucratic or stifling system but, rather, to enable, develop and foster what has always been a very good sector. There are many people who will have a say in the matter. I hope we will meet the 2003 target. It may be slightly optimistic but we will certainly do our best to achieve it.

I accept this is a somewhat complex area. However, the Minister of State will recall an issue which arose during the general election campaign in relation to tax free status for registered charities. That is an important issue for legitimate charities and it is important to get the legislation right. However, I would like an undertaking from the Minister of State that there will be no undue delay and that work on the Bill will be given priority.

Certainly, the Deputy has my word on that. At the same time, there is now an opportunity to examine the situation in a wider context than simply the fund-raising aspect. Perhaps the fund-raising issues alone could be dealt with more quickly but I am anxious to take the opportunity to look at the introduction of proper regulation, control, inspection and accountability into the entire area. There have been huge changes in relation to fund-raising and charities in recent years. There are now highly professional fund-raisers involved and newer methods are being employed. It is our intention to examine and bring forward legislation on this whole area.

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