O'Donnell criticises charities regulation

PD Minister of State Ms Liz O'Donnell has criticised the failure of successive governments to bring forward legislation to regulate charities.

The Minister of State for Foreign Affairs told The Irish Times she was disappointed at the failure of the Department of Justice to regulate the area, over a decade after comprehensive proposals for reform were first made.

She said the issue was "going nowhere" in the Department of Justice, which has had responsibility for bringing forward legislation for most of the life of the present Government.

Ireland's lax regulation of charities is unique in western Europe.

There is no register of charities, and no requirement for charities to submit accounts for public inspection.

This is in spite of the fact that the major charities are in favour of regulation.

Ms O'Donnell's comments follow controversy this week over the use of mailing lists by one agency, Concern Worldwide, to raise funds from the public.

Ms O'Donnell said she contacted the Minister for Social, Community and Family Affairs, Mr Ahern, this week seeking moves to regulate Third World charities.

Mr Ahern was given responsibility for the issue last July.

She said regulation was "urgently due" in the light of the rapidly expanding overseas aid budget, as the Government moves towards meeting UN targets on aid spending. Last year, non-governmental organisations received £29 million in State aid.

"When you're spending this level of money, you need greater accountability. It's just not safe to continue in an unregulated fashion."

Ms O'Donnell said her "greatest fear" was that a "big scandal" could happen in the sector when it was still unregulated.

Mr Ahern told the Dβil last week there would be "broad public consultation" before legislation was introduced. The Law Reform Commission has also been asked to produce a report on the reforms needed.

Charity regulation is littered with committees and broken promises.

In 1990, the Committee on Fundraising Activities for Charitable and Other Purposes recommended the setting-up of a register of charities.

Chaired by Mr Justice Declan Costello, the committee revealed the inadequacy of controls over collections and said it had "evidence that fraud and malpractice have occurred in the past".