The Government is blithely inviting the emergence of another public scandal because of laziness and incompetence. In spite of persistent warnings from law reform agencies and appeals by major charities for the regulation of their sector, it is unlikely that legislation controlling and monitoring these organisations will take effect within the lifetime of the Government.
Fifteen years ago, a major report on fundraising activities by charities recommended that statutory controls be established to regulate such agencies and to require them to submit accounts for public inspection. Nothing has happened. Similar recommendations were made, with the support of all the major charities, in 1996 and in 2002. In the current Programme for Government, Fianna Fáil and the Progressive Democrats promised comprehensive legal reform in order to ensure accountability and to guard against the abuse of charitable status and fraud. But legislation is still awaited, in spite of intermittent controversies over mismanagement and fraud involving a variety of charities.
It is an extremely serious situation. Ireland's lax regulations are unique within the European Union. An estimated 5,000 charities claim tax relief status from the Revenue Commissioners and receive hundreds of millions of euro in public and private donations each year. Yet there is no complete register of charities. And there is no obligation for those charities that are not registered as companies to publish accounts.
The Government's failure to legislate is indefensible. An exercise in "pass the parcel" developed during its first term in office. Initially, responsibility for legislation lay with the Department of Justice. When nothing happened, responsibility was transferred to the Department of Social and Family Affairs. Then it went to the Department of Community, Rural and Gaeltacht Affairs, where the Minister, Éamon Ó Cuív, promised comprehensive reform in 2002. In the following year, his Minister of State, Noel Ahern promised legislation by 2004. But, last week, Mr Ahern conceded the legislation will now not be published until 2006.
This is unfair to reputable charities, which are anxious that the sector should be properly regulated and transparent. It is unfair to the public who, in the absence of clarity about the percentage of fundraised cash that goes directly to charities, may decide not to contribute. And it is dangerously negligent on the part of a Government that has committed itself to providing up to 0.7 per cent of GNP for overseas development aid, some of it through charitable organisations.