Rehab says it will consider revealing chief’s salary
Charity, however, insists Angela Kerins’s remuneration was solely matter for the board
He said the Government was implementing the Charities Act and establishing a regulatory authority, to be set up later in the year, so that there could be public confidence in charitable organisations.
“I am in favour of transparency and I am in favour of organisations making known in their accounts, for example, the salaries they pay to their chief executives,” he added.
The Oireachtas Health Committee passed a motion today calling for “calm” and asking people to continue supporting charities.
- Dáil concern over Flannery’s use of firm to bill Rehab
- Clear sense now in political circles that Rehab is in line for a grilling
- Still no clarity over Rehab pay despite State funding
- Irish Cancer Society made a loss on the operation of its lottery
- Disability chief who attracts controversy and kudos in equal measure
- Rehab consistently falls short on transparency
The committee is to also make contact with each of the section 39 organisations asking to them to outline executive pay, and how salaries are split between public and private funds. It will also ask if the recent scandals have had an effect on their fundraising capabilities.
Earlier Minister for Transport Leo Varadkar said the Rehab controversy would not go away until Kerins revealed her salary.
He said her salary should be outlined in the in the company’s annual accounts, and claimed it is not feasible for the company to continue to refuse to do so.
“I don’t think they will be able to not answer that question,” he said. “Sooner or later they are going to have to answer those questions and they’d be wise to do it now.”
He also said Rehab was using its lotteries to increase the money it got from the State.
“The first fact is that only 8 per cent of the money that you pay when you buy a Lotto ticket goes to charitable causes,” Mr Varadkar said. “They were using the system to maximise the compensation they got from the State.”
Minister for Justice Alan Shatter told the Dáil this week that Rehab lottery sales of €7.2 million in 2010 only saw a profit of €558,000.
However, Mr Varadkar said it was a reasonable defence for Rehab to say they were merely operating the system as they found it, which allowed for compensation for not competing with the National Lottery.
“I think what they were doing was using the system and the system was set up, albeit by a previous Government, in that way, that they got money from Government based on the number of tickets they sold, not the profit they made on selling the tickets. What they were doing was using the system to maximise the amount of money they got from Government but that isn’t how a lottery should work.”
Rehab board member John Maguire said the company had a range of lottery products but said “the scratch cards have performed poorly.”
Mr Maguire said 66 per cent of lottery profits were given out in prizes, and also said Rehab had to give retailers 12.5 per cent. Five per cent goes on printing and distribution, with more spent on marketing, as well as on managing the various products.
Mr Maguire said the salary of the chief executive is a matter for the board.