Charities regulation and accountability
Gerry Adams says weak regulation has undermined confidence in charities and left citizens with disabilities dependent on an inadequate system. The Taoiseach says a charities regulator, interim chief executive and statutory register will be established, while defending the Government’s implementation of the 2009 Act.
Yesterday, I put it to the Taoiseach that citizens with disabilities do not have equality. It is my contention that this State has failed since its inception to provide services that would be afforded to every citizen if this were a real republic. The gap has been filled by charities. I wish to praise the work they do. Since the foundation of the State, however, charities have not been regulated, and that is now doing untold damage - I am sure the Taoiseach would agree - both to the charities and to those citizens who depend on them. Recent scandals such as that surrounding the CRC and now the major question mark over fund-raising by Rehab are causing enormous disquiet. Tá a fhios ag an bpobal nach bhfuil rud ar bith chomh dona leis an saint agus sílim go n-aontaíonn an Taoiseach le sin.
In 2009, Fianna Fáil passed legislation to regulate the charities sector but never implemented the legislative provisions. In February 2012, my colleague Deputy Mac Lochlainn asked the Minister for Justice and Equality, Deputy Shatter, why the Act was not being implemented. In his reply the Minister said it was not practical to proceed with the full implementation of the Act at that time given the financial and staffing resources that would be required. Hence, he said, the implementation of the Act had been deferred. He went on to claim that it was not a fact that charities in Ireland were devoid of oversight. We know that there is not enough oversight. Yesterday, Sinn Féin introduced a Bill that seeks to ensure that all the provisions of the Charities Act 2009 are fully enacted by 31 May 2014, but the Government opposed it.
Will the Taoiseach reconsider that position? We welcome some of the steps taken by the Minister for Justice and Equality, Deputy Shatter, but all provisions of the Act need to be enacted. Will the Taoiseach support Sinn Féin’s Bill to implement all provisions of the Charities Act 2009 which has been sitting on the Statute Book for the past five years, including the three years of this Government’s term?
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We have had discussions and questions here over the past several years about what is different. Since coming into government, many of the political and financial carpets we have lifted have been infested with maggots.
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The Government is after putting down some carpets itself.
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This Government is in the business of clearing up a legacy of untold proportions. We are now into section 38 and section 39 bodies. I assure the Deputy, the House and the public that, after what is happening in the charities area, the sector will come through to a much safer and a more justifiable, accountable and transparent system. It will be the case that everyone who donates to the charity of their choice can be comfortable in the knowledge that the accounts will be audited and published and the charities regulator will have endorsed charity X or Y as measuring up to criteria set out in the Charities Act 2009. We want a system in which all charities are treated the same, that they be transparent, accountable and the public can be comfortable in that the moneys they gave from their hard-earned pay are going for what they were intended. I am sure Deputy Adams supports this too.
This process has started. I commend the members of the Oireachtas committees who have been involved to this point and will, obviously, have a great deal of work ahead of them. This is in everybody’s interest. The Minister for Justice and Equality, Deputy Shatter, has set out that the interim regulator will be in place by Easter and a regulatory board will be established soon after. From a different perspective, the Health Service Executive, HSE, is following through on examining section 38 and section 39 agencies. It is in the public’s interest that all these matters are cleared up. We have had a number of mountains to climb over the past three years. Unfortunately, as we move along, we discover there is more work to be done in several areas.
The charities regulator will be in position by the end of February, a board will be in operation and we will move to a point that section 38 and section 39 organisations will be dealt with. There are many charities that are well run and can put absolutely everything out in front of people. That is the way it should be for them all. That is the way it will be.
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Not all the charities fall foul of whatever may be happening with some of them. They all fall foul, however, of the fact there is a lack of public confidence because of the lack of regulation in the sector. We know this lack of regulation across many sectors has been at the core of the toxic culture in this State for a long time.
I asked the Taoiseach a straight question. There is a Charities Act in place since 2009. While the Minister’s recent measures in this regard are welcome, they do not include the full implementation of the legislation. They are only small piecemeal measures, brought about because of an ongoing scandal in the sector.
Will the Taoiseach support the legislation which is now up for reimplementation? As this is above party politics, I am disappointed at his refusal to support our Bill. If the charities legislation were fully implemented, it would protect charities and restore public confidence. I know the Government has been extremely busy but it has had three years during which to act on this. Last night’s revelations by the justice Minister about Rehab, information which he has had for some time, have shocked citizens and reinforced the urgent need to fully implement the Charities Act 2009.
On top of all this disquiet, does the Taoiseach also agree that the refusal, thus far, by the chief executive officer of Rehab to declare her salary, as well as the general lack of transparency about remuneration in this and other sectors, need to be addressed and rectified?
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I am sure Deputy Adams is as interested as everyone else that transparency and accountability be had right across the board in respect of all charities. The regulatory authority will be in place by Easter. The Minister for Public Expenditure and Reform sanctioned the appointment of an interim chief executive officer. That position will be filled by the end of February. One of the early priorities will be the publication of a statutory register of charities, so people will know what is involved. That will obviously have its own implementation to bring about transparency and accountability.
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For the Deputy’s information, the Charities Act was enacted in February 2009 by the former Administration but no regulator was appointed. When the Charities Bill was published in 2007, the then Minister of State at the Department of Community, Rural and Gaeltacht Affairs, Pat Carey, said:
... the Government is committed to protecting both charitable organisations and the public interest by reforming the law to ensure accountability and to protect against abuse of charitable status and fraud through the Bill ...
While that was a valid comment, it was clear following the appointment of this Government in 2011 that the full implementation of this Act was not possible, given the financial circumstances that applied.
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Look at the mess that has created.
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I am telling the Deputy the truth of the matter. Arrangements for the implementation of the Act had to be examined in detail and the Minister for Justice and Equality, Deputy Shatter, has brought forward his proposals on how best to implement them. A consultation process was carried out between the Department of Justice and Equality, the public and the charities sector on the Charities Act last year. The Minister published that report last July. Now, we move on to the section 38 and section 39 organisations. We cannot have a position where unsanctioned pay from the public purse is being paid in such a manner. We will rectify that.
All charities will be subject to the same transparency and accountability. I agree with Deputy Adams that the many people who give selflessly because of their belief or dedication to charities, as well as their service-users, want this matter sorted out. Sorted out it will be.
I paid a private visit to the Central Remedial Clinic, CRC, last week. Many of the young professionals working there were distraught at the nauseating spectacle they had seen unfold. For them, and for the people who use the clinic’s services and for those who make charitable contributions to it, and in the public interest, we must clear all of this up. The process is now in train to see that will happen.