Reply by Minister for Justice, Equality and Defence – Mr Alan Shatter TD
I am very aware of the difficulties that charities can face when raising
funds to support their work, especially in the current financial climate.
This was highlighted in the Prime Time programme on this topic, which was
broadcast a number of weeks ago. I would like to congratulate Primetime and
RTE for their careful investigative work in revealing and bringing to
public attention the activities of an organised gang targeting clothing
banks. Burglary, theft and all types of criminal activity are, of course,
to be condemned. However, there is something particularly nasty and
callous in the actions of those who steal, for their own benefit,
charitable donations intended to help those in need.
In relation to the revelations contained in the Prime Time broadcast, I
have requested a specific report from the Garda Commissioner in relation to
this type of crime and I will, of course, give very careful consideration
to the Commissioner’s views and to any suggestions he might make in this
regard.
I would like to assure Deputy Byrne that I fully appreciate the need to
protect the fundraising ability of charities, including charities that have
chosen to support their fundraising effort through the operation of
clothing banks. I am determined to ensure that the donations of clothes and
other items so generously given by members of the public in the belief that
they are supporting a charity and helping those in need are not diverted by
theft or illegal profiteering.
The Criminal Justice Acts contain the necessary measures to address theft
from charity clothing banks. Theft, including theft from charity clothing
banks, is an offence contrary to section 4 of the Criminal Justice (Theft
and Fraud Offences) Act 2001. A person convicted upon indictment of theft
is liable to imprisonment for up to 10 years and/or an unlimited fine.
While theft from charity clothing banks is clearly a criminal issue, the
topic for this debate also concerns the wider issue of public trust and
confidence in charities. The recent revelations in the Prime Time programme
regarding the proportion of profit from charity clothing banks that
actually reach the charitable cause with which the bank is associated is
also a cause for concern. Such revelations are a disincentive for people to
donate, and this can have a negative impact on donations to charities,
including donations to charities that go to great effort to ensure that the
maximum proportion possible of proceeds from donations is in fact being
used for charitable work.
Members of the public are entitled to know what financial benefits
charities receive from donations to clothing banks. Until the recent
revelations by Prime Time, many donors to charity clothing banks may have
been under the impression that all proceeds went to the charity. I believe
there is a need for greater transparency when it comes to arrangements
charities may have with commercial companies concerning the operation of
clothing banks. Where a charity is lending its name to a clothing bank, and
by doing so is encouraging members of the public to donate clothes to that
bank, they have an obligation to indicate clearly what financial benefit
they are receiving from this arrangement.
Supporting public trust and confidence in charities is the core objective
of the Charities Act of 2009, which was enacted to introduce a system of
statutory regulation of charitable organisations.
While the Charities Act of 2009 does not deal directly with the regulation
of Irish clothing banks or collections, it does contain measures aimed at
preventing the abuse of charitable status. When brought into force, these
measures will support the efforts of the relevant authorities in addressing
the difficulties surrounding theft and illegal profiteering from charity
clothing banks. Under section 46 of the Charities Act, it is an offence for
an organisation that is not a registered charity to describe itself or its
activities in such terms as would lead members of the public to reasonably
believe that it is a charity. This Act, when implemented, will help to
safeguard that vital public trust in charities.
While full implementation of the Charities Act 2009 and the creation of a
Register of Charities have been delayed for financial reasons, the
Government remains committed to progressing the implementation of the Act
and putting in place a dedicated regulatory framework for charities in line
with the provisions of the Act. My Department recently conducted a public
consultation on the implementation of key provisions of the Act on a phased
and low cost basis. The submissions received are currently being reviewed
and I look forward to publishing the outcome of the consultation in due
course and to provide further information on the timeframe for the
introduction of an operational Charities Regulatory Authority and creation
of a statutory Register of Charities as provided for under the Act.
Charitable organisations play a key role in communities throughout the
country. It is in all our interests to ensure that it continues to do so.
This includes protecting its genuine fundraising efforts against any who
might wish to exploit the goodwill and generosity of the public.
I thank the Deputy for raising this topic.