Dáil Éireann Debate, Wednesday - 21 March 2012
488 Deputy Mattie McGrath asked the Minister for Justice and Equality if he will detail the sections of the Charities Act 2009 that have commenced in advance of the establishment of the charity regulatory authority; and if he will make a statement on the matter. [15345/12]
View answerThough the Charities Act was passed in 2009, it did not come immediately into force. Any sections that it is possible to commence in advance of the establishment of the Charities Regulatory Authority have been commenced. To date, the following sections of the Act have been commenced, by way of two commencement orders, S.I. No. 284 of 2009 and S.I. No. 315 of 2010: Sections 1, 2, 4, 5,10 (other than subsections (3) and (4)); 90, and 99. The purpose of the commencement orders to date is to allow the Courts to grant relief to a Charity Trustee from liability for breach of trust where the Trustee acted honestly and reasonably and in good faith and to provide for the regulation of the sale of presigned Mass cards.
489 Deputy Mattie McGrath asked the Minister for Justice and Equality if he will make public the outcome of his Department’s comprehensive review of expenditure as it relates to the full implementation of the Charities Act 2009; and if he will make a statement on the matter. [15346/12]
View answerI am sure the Deputy is aware that under the Troika agreement, the Irish Government 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.
The Deputy will appreciate that the implementation of the Charities Act 2009 had to be looked at 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, and that the implementation of the Act should be deferred until the budgetary situation improves sufficiently.
490 Deputy Mattie McGrath asked the Minister for Justice and Equality his plans to introduce a mandatory system of registration for charities operating here as a matter of urgency in the interests of increased transparency; and if he will make a statement on the matter. [15347/12]
View answerIn 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.
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, and that the implementation of the Act should be deferred.
I would like to reassure the Deputy that it is not the case that charities in Ireland are currently devoid of oversight — charitable organisations 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 charitable organisations comply with tax law. A full list of eligible charities is available to the public at www.revenue.ie. Many charitable organisations 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 charitable organisations would also potentially be subject to scrutiny by the Office of the Director of Corporate Enforcement. Charitable organisations 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 fund-raising 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 fund-raising 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.
