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Dáil Éireann debate -
Wednesday, 7 Feb 2018

Vol. 965 No. 2

Priority Questions

Brexit Issues

Niall Collins

Question:

29. Deputy Niall Collins asked the Minister for Business, Enterprise and Innovation the contingencies and supports in place to safeguard Irish SMEs and export businesses from a hard Brexit scenario including revision of state aid rules; and if she will make a statement on the matter. [6291/18]

I was in London three weeks ago with my colleagues, Deputy Donnelly and Deputy Darragh O'Brien, and we met representatives from the Labour Party, the Conservative Party and from an all-party committee in Westminster. It is fair to say that our take-away was that it is pretty shambolic over there, which is not news to us, but it is against that backdrop I wish again to ask the Minister to outline the contingencies and supports she is putting in place to safeguard Irish SMEs and in particular exporting businesses in view of a potential hard Brexit, which may eventually arise.

I thank the Deputy for raising this matter. Extensive work has been ongoing in my Department to prepare for all Brexit eventualities. This includes both research and the development of specific supports. Officials of my Department have had discussions with senior officials from DG Competition on the potential and the real difficulties encountered by Irish businesses as a result of the UK's decision to leave the EU. In November 2017, the then Tánaiste met Commissioner Vestager and the issue of state aid was discussed. An outcome from this meeting was the establishment of a working group comprising representatives from DG Competition, the Department of Business, Enterprise and Innovation, Enterprise Ireland and the Department of Agriculture, Food and the Marine. The objective of the group is to scope and design schemes to support enterprises impacted by Brexit in line with current applicable state aid rules. Should issues arise that require an approach that does not fit within the existing state aid rules, they will be raised as part of the working group discussions. The work of the group has already commenced and it is due to have its third meeting in February 2018. In between these meetings, there has been engagement on specific issues to continue to progress matters.

A rescue and restructuring, R&R, scheme was approved by the Commission in late November 2017. This scheme has been put in place as it was considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances if necessary.

A Brexit loan scheme was announced in budget 2018. This will provide affordable working capital financing to eligible businesses that are either currently impacted by Brexit, or will be in the future. The recent signing of the counter guarantee means the €23 million Exchequer funding, comprising €14 million from my Department and €9 million from the Department of Agriculture, Food and the Marine, can be leveraged to provide a €300 million fund from the European Commission and the European Investment Band, EIB, Group through its InnovFin loan guarantee scheme. The scheme will be open to businesses of fewer than 500 employees, which can demonstrate that they are significantly exposed to the impact, or potential impact, of Brexit. They must be a viable business, doing business in Ireland, and they must have a business development strategy demonstrating that they plan to innovate or adapt in response to Brexit.

The agencies of my Department are also fully engaged in preparing for Brexit. Enterprise Ireland's, EI, #PrepareforBrexit communications campaign, featuring the Brexit SME scorecard, was launched last March. The scorecard is an interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit. EI has introduced a Be Prepared Grant which offers up to €5,000 for exporting client companies to conduct further research and use external expertise to develop a Brexit action plan. The funding to local enterprise offices has been increased by 22% and they, with InterTrade Ireland, are offering a range of Brexit focused supports to companies, including those engaged in cross-Border trade with Northern Ireland.

This work, along with market developments as a result of Brexit, and ongoing engagement with the business community, will inform further discussions with the Commission. I will be maintaining a strong focus on the SME sector and will consider the development of further initiatives to support business as required.

We are aware of the Brexit loan scheme and the fact that there was a number of new staff hires within the agencies and that took longer than it should have taken. In addition, the generating of awareness and preparedness of the SME sector has been poor. InterTradeIreland tells us that 19 out of 20 SMEs do not have a plan to deal with Brexit. That really is a shocking statistic, in particular coming from a reputable organisation such as InterTradeIreland.

I wish to focus on the state aid rules. The Minister has outlined the rescue and restructuring scheme. She said that everything she is doing is within the existing state aid rules. What I have asked previously and what I ask again now is whether the Minister cannot lobby and petition DG Competition to change the state aid rules. That was previously done following the collapse in 2008 where the ceiling of €200,000 was raised to €500,000 and that was complemented by an enterprise stabilisation fund. Has the Minister engaged in any attempt to build support for that from her ministerial colleagues across Europe and will she specifically put changing state aid rules on the agenda rather than coming up with new schemes within the existing structure? The business representative organisations such as ISME, the SFA, IBEC and people who represent producers all say they want state aid rules to change to allow for a higher ceiling.

My Department is engaging with officials in DG Competition. They are putting the case forward and outlining the difficulties Brexit will present for businesses in this country.

With regard to the lack of preparedness of businesses, the Deputy is correct. In a survey carried out last year, it was found that 16% of businesses had a plan and that the rest did not. Through Enterprise Ireland, there has been a significant public campaign advising businesses to prepare themselves for Brexit, identify the risks and mitigate against them. There is a €5,000 grant for which Enterprise Ireland clients can apply to assist in examining their risks. As public representatives, we need to encourage businesses to avail themselves of the supports that exist. I am very conscious that businesses need to be ready for Brexit.

I do not mean to minimise the issue but it will require more than a hashtag to prepare for Brexit. Let us not boil it all down to a simple hashtag. As I asked the Minister's predecessor, can she give us a firm commitment today that she will put the changing of state aid rules and increasing the ceiling to a sum in the region of €500,000 on the agenda for the next EU Competitiveness Council meeting? Will she raise it specifically? That is a very straightforward question.

On Brexit, a number of reports were commissioned by the Department and the Minister's predecessor. One was entitled Sectoral Implications Arising from Brexit: Most Exposed Sectors. The Revenue Commissioners published a report that was leaked and on which there was much public commentary. When I previously raised the issue of the first report, I was told an analysis is due to be concluded by the end of the year, that being the end of 2017. All this is against a backdrop of businesses not being properly prepared. In the interest of transparency, informing debate and allowing businesses to prepare themselves, will the Minister publish the reports? Will she give us a commitment that they will be published as soon as possible?

A number of reports are being prepared on the impact of Brexit on businesses and the Irish economy. They will be published in the coming weeks. I have not read the full report yet but it will be published in the next week. Actually, I believe we are publishing it next week.

Regarding the European Union, my officials are speaking continually to EU officials and we are certainly making the case for state aid in the form of supports for Irish businesses that are being affected by Brexit. There is a range of supports, including the Brexit SME scorecard, currently on offer to businesses. A representative of a business rang me two days ago stating it is getting worried about Brexit. I said that was fine as there are plenty of supports available that should be sought. The company did not actually know about them. We need to get the message out. As Brexit approaches, it is beginning to dawn on businesses that they really need to get involved.

Office of the Director of Corporate Enforcement

Maurice Quinlivan

Question:

30. Deputy Maurice Quinlivan asked the Minister for Business, Enterprise and Innovation the interim actions being taken to ensure white-collar crime is investigated fully pending the establishment of a new agency to replace the Office of the Director of Corporate Enforcement. [6083/18]

I wish to ask the Minister about the Office of the Director of Corporate Enforcement, ODCE. As she is probably aware, many people have serious concerns about it and its workings. Pending the establishment of a new agency to replace what I believe is a non-functioning one, how will the Minister ensure that white-collar criminality is investigated and that those responsible are prosecuted until the new agency is up and running?

On 2 November last year, the Government published a suite of measures aimed at enhancing corporate governance, increasing transparency and strengthening Ireland's response to white-collar crime. The implementation of these measures is progressing across three Departments, namely, the Departments of Business, Enterprise and Innovation, Justice and Equality and Finance.

With regard to my Department, since that publication was launched work on the development of the legislative framework for the establishment of the ODCE as an agency has commenced. It is expected that the general scheme of a Bill to give effect to this decision will be published by the second quarter of 2018, with publication of the Bill by the fourth quarter of 2018. The Companies (Statutory Audits) Bill was published on 6 November 2017. The Second Stage debate on that Bill took place on 23 January 2018 and Committee Stage is scheduled for 21 February 2018. The Company Law Review Group has submitted its report on corporate governance. This is currently being examined with a view to further enhancing the corporate governance provisions of the Companies Act 2014. The public consultation to seek views from stakeholders to inform the transposition of the shareholders' rights directive commenced ahead of schedule, with responses due back by 9 February 2018.

In parallel with the implementation of these measures, the ODCE has played and continues to play a vital role in undertaking its statutory functions, as set out in the Companies Act 2014.

The ODCE annual report for 2016 points to a number of key successes during the year, as follows: following the examination of reports submitted to the office by liquidators of insolvent companies, 90 company directors were restricted and 11 disqualified by the High Court; in keeping with the ongoing strategic shift towards the investigation of more serious indications of wrongdoing, five investigation files were submitted to the DPP; as an alternative to formal enforcement actions, cautions were issued to a total of 61 companies; 108 directions were issued to relevant parties requiring them to comply with their statutory obligations under company law; and the securing of the rectification on a non-statutory basis, of suspected infringements of the Companies Act 2014, in regard to directors' loans in 60 cases, to an aggregate value of €17 million approximately.

Additional information not given on the floor of the House

In terms of prosecutions, the Director of Corporate Enforcement is only statutorily empowered to initiate summary prosecutions, that is, prosecutions of relatively minor offences in the District Court. More serious alleged breaches of company law are prosecuted on indictment in the Circuit Court and only the Director of Public Prosecutions, DPP, can direct that charges be preferred on indictment.

The ODCE has also been successful in recent high-profile white-collar crime prosecutions. In 2014, two individuals were convicted for the giving of unlawful financial assistance by Anglo Irish Bank for the purchase of its own shares. In 2016, an individual was convicted for fraudulent trading on foot of a plea of guilty. Also in 2016, another individual was convicted for failing to maintain a licensed bank's register of loans to directors on foot of a plea of guilty. In 2017, a person was arrested and charged with fraudulent trading based on an invoice discounting fraud and entered a plea of guilty.

I look forward to reading the full response that will be placed on the record. I am really disappointed with the response the Minister read out because this issue is not being dealt with as urgently as necessary. The questions over the current agency are very worrying. I refer to the botched Seán FitzPatrick investigation, the total absence of prosecutions and convictions for two years, the handing back of funding and the lack of staff in the agency.

Last week at a meeting of the Joint Committee on Business, Enterprise and Innovation, there was a vote against my proposal to invite the director in to answer questions. Legal worries were cited in the response to our invitation. As the record will show, clear guidelines could have been laid down to prevent any discussion of Anglo Irish Bank. Unrelated questions on why the ODCE is failing in its mandate could have been asked at a meeting of the committee. The ODCE has not been before a committee in the Oireachtas for a full eight years. The report compiled about the botched Seán FitzPatrick trial is secret. How are we supposed to find out what is going on in the ODCE? It is crazy. The tracker mortgage scandal highlights continued total disregard for corporate law. We learned from the finance committee yesterday that KBC Bank is still overcharging nearly 2,500 customers on tracker mortgages. That is no wonder because investigations into, and prosecutions of, white-collar crime in this country are a joke.

I will try to address just some of the issues the Deputy raised. He raised quite a number of them.

The funding allocation for the ODCE for 2017 was €4.895 million, with an outturn or expenditure of €3 million. The funding allocation is €5 million for 2018. Therefore, there is a considerable increase. A significant element of the ODCE's annual funding allocation includes a non-pay allocation for possible legal costs. Therefore, there is a reserve for legal costs. These costs and their timing are difficult to forecast as the office cannot be sure of the timing of the cases or their outcome in terms of costs. While it is entirely prudent that provision continue to be made to meet legal costs, there will always be uncertainty over the amount of costs and their timing. Therefore, there is potential for under-expenditure.

The Deputy mentioned the case of Anglo Irish Bank. I agree it was not well handled but, having said that, the current director was not in office at the time. The ODCE has been considerably strengthened since the time in question in terms of funding, staff and the skill mix.

The Minister mentioned funding allocations. My concern, however, is that money allocated recently has not been spent. It has been sent back to the Department. Perhaps the Minister will answer some specific questions. When does she anticipate the report on the ODCE and the botched Seán FitzPatrick investigation will be published? The Minister was not in her current role last June when the report landed in the Department. Surely it cannot take this long to write a report on that investigation.

Has the Minister met the director recently to monitor what is going on and to ensure another trial does not collapse? Will she commit that the new agency that will replace the ODCE, Office of the Director of Corporate Enforcement, will be more accountable to the Oireachtas because, as I have outlined, the current system of accountability is not working? The last time the ODCE was before an Oireachtas committee was in January 2010, a full eight years ago. Such a level of accountability and lack of oversight is unacceptable. Has the Minister figures on how many prosecutions led to convictions in 2017, considering none was achieved in the previous two years?

An account of the report into Judge Aylmer's ruling will be published. However, we had to go to court to get permission to do that. We are in that process.

Is there a timeframe for this?

I do not believe it will take that long.

I outlined several prosecutions and issues which the ODCE addressed in 2017. It has improved considerably since 2012 and is doing a good job. In 2017, a person was arrested and charged with fraudulent trading based on an invoice discounting fraud and entered a plea of guilty. In 2016, an individual was convicted for failing to maintain a licensed bank's register of loans to directors on foot of a plea of guilty and another individual was convicted for fraudulent trading on foot of a plea of guilty.

In terms of prosecutions, the Director of Corporate Enforcement is only statutorily empowered to initiate summary prosecutions. More serious alleged breaches of company law are prosecuted on indictment in the Circuit Court and only the Director of Public Prosecutions, DPP, can direct that charges be preferred on indictment.

The ODCE is doing good work. I want to put it into an independent agency which will mean it can go to the marketplace to attract the sets of technical skills it needs, such as forensic accountants.

Research Funding

Niall Collins

Question:

31. Deputy Niall Collins asked the Minister for Business, Enterprise and Innovation the level of funding allocated to the programme for research in third level institutions in 2018; and the amount of funding that has been ring-fenced for frontier research. [6292/18]

This question requests an update on the allocation of funding for the programme of research in third level institutions. Ireland's ranking in the 2017 Bloomberg innovation index fell. Any underfunding of third level research will ultimately erode our competitiveness. Will the Minister of State give me an update on this?

The 2018 allocation to the programme for research in third level institutions, PRTLI, is €14.3 million. A portion of the 2018 PRTLI allocation for 2018 will be used to part-pay outstanding bills for PRTLI cycle 5 projects. There were 33 projects funded in cycle 5, with the final two completed in mid-2017. The Department is now in the final stages of addressing the remaining payments associated with cycle 5 of PRTLI.

A further portion of the 2018 PRTLI allocation will be used to commence a postgraduate programme funding of both PhD and research masters, as per the action in Innovation 2020 to increase postgraduate researcher enrolments in disciplines aligned to enterprise and national needs.

This new postgraduate programme will be administered by Science Foundation Ireland, SFI, and will fund postgraduate researcher enrolments in disciplines under its remit. SFI has already announced initial calls associated with this programme in 2018 and expects to issue further calls relating to awards in 2019 and beyond.

The Department and its agencies are important funders of research with expenditure of approximately €426 million in 2017. This accounts for more than half of total Government investment in research and development. SFI funds a significant amount of oriented basic research that is scientifically excellent in line with the Government's 14 national research priority areas. A recent analysis of SFI's portfolio of funded projects shows that approximately 80% of its funding, €140 million per annum, is committed to oriented basic research projects with the other 20% in the more applied space.

As an additional support to drive basic research in Ireland, Innovation 2020 is committed to the development of a competitive fund to support qualified researchers to undertake project-based frontier basic research. In 2017, the Irish Research Council, an agency of the Department of Education and Skills, launched the frontier research programme, Laureate, with initial funding of €2.5 million. Funding is awarded based on the excellence of the research proposals and assessed through a rigorous and international peer-review process.

Trade unionists, employers and business representative associations state our economic recovery, prosperity and well-being will be put at risk if we do not adequately resource third level funding. Since 2016, there has been a 52% cut in research funding. We need to call the Government to account on this. A fall from €30.4 million to €14 million is a drastic cut. This is against the backdrop of a high point several years ago when almost €58 million was made available to research programmes.

Can the Minister of State give more research funding to third level institutions? All third level institutions tell us we must invest more in research. If we are not at the cutting edge or forefront of research, we will lose our competitiveness.

It would be remiss of me not to agree with the Deputy on this. I believe we should be investing more in research and development. The difficulty is we have come from a tight fiscal space and five years of recession. It is always difficult to decide on which areas to place funding to boost the economy or deliver sustainability. While the 2018 allocation of €14 million is small compared with other years, as the Deputy knows there are historical liabilities with cycle 5, which are close to being paid down in full. This comes to €10 million to the HEA, Higher Education Authority. In line with the specific action of Innovation 2020, a successor to cycle 5 is being scoped out through Science Foundation Ireland.

The Government is aware of that driving innovation, research and development is of paramount importance with the advancement of technology over the next 20 years. However, in 2008 public expenditure in research funding peaked at €930 million but it was substantially cut through the years, even when Fianna Fáil was in government. While the public will want investment in housing, education, health and so forth, we must also be a driving force in innovation. It would be difficult for me not to agree with the Deputy on that.

I am sure the point is not lost on the Minister of State that there are hundreds of Irish researchers actively working overseas, particularly in the UK, who, if they were funded properly in this country, would move back. That is a huge resource we are missing here and we are at a loss because of it.

Previously, research funding was allocated through a five-year model. It is now changed to a year-on-year model. I think the Minister of State will agree it is crazy that research funding will only be provided year-on-year rather than over a five-year horizon.

If people are to commit to engaging in research over a significant period, it flies in the face of common sense to try to plan and run research on a 12-month basis. Could the Minister of State reverse the decision to move from the five-year model to a year-on-year system?

In the context of the Deputy's first question, what he says is correct regarding researchers and developers overseas. However, based on the amount of money we put into research and development in Ireland, it is fair to say that we have outstanding research centres - 17 in total. We had the ability and funding to open three research centres last year, within a very tight fiscal space, bringing the number up from 14 to 17. A number of our research centres in universities, institutes of technology, multinationals and FDI companies are regarded as some of the best in the world.

On the Deputy's second question, I can inform him that the Minister and I are making a case. I have grave difficulty with funding from year to year and I would prefer set-down projects based over a period of years whereby we would know where we to invest the money and would have the money to do it across the five-year cycle. I assure the Deputy that the Minister and I are making a case within the Department.

Employment Rights

Paul Murphy

Question:

32. Deputy Paul Murphy asked the Minister for Business, Enterprise and Innovation her views on the employment rights issues raised by the industrial dispute in a company (details supplied) and if she will make a statement on the matter. [6290/18]

I want to raise the very serious case of the illegal super-exploitation of workers by a contractor, Kwik Structures. The contractor is involved in student accommodation at Grangegorman, Blackpitts and Boland's Mill, where the main contractor is BAM. I understand that Kwik Structures is due to start work at the national children's hospital site shortly - again, in conjunction with BAM. Kwik Structures is paying significantly below sectoral employment order, SEO, rates, is not providing workers with payslips and has not registered its workers with the construction workers' pension scheme.

I thank the Deputy for his question. I am answering on behalf of the Minister of State, Deputy Breen, who has responsibility in this area but who is away on a trade mission. My Department is unaware of any alleged dispute at the company referred to by the Deputy. Having made inquiries, it would appear that the issues in question have not been brought to the attention of the relevant industrial relations-employments rights bodies, that is, the Workplace Relations Commission, WRC, and the Labour Court. I can, therefore, only address the issues raised relating to the alleged breaches of employment law in a very general way.

In terms of the rates of payment agreed by the parties to the SEO for the construction sector that was adopted in law in October 2017, these apply to every worker of the class, type or group in the economic sector to which the order applies. Equally, the terms and conditions relating to any sick pay scheme or pension scheme set out under the SEO are applicable. This applies to the employers of workers regardless of whether the employer is an agency or a construction firm by virtue of section 6 of the Protection of Employees (Temporary Agency Work) Act 2012.

In the event of a dispute as to the rates that should apply and to whom, the order sets out the dispute resolution procedure that applies. Essentially, this provides that in the first instance efforts should be made at local level to reach a resolution by giving notice in writing to the employer. Failing a resolution at this point, a complaint may be made to a WRC adjudication officer. In the case of an individual dispute, the outcome of the adjudication hearing can be appealed by either party to the Labour Court. In the case of a collective dispute, if the issue remains unresolved locally, it will be referred to the conciliation service of the WRC. If the issue remains unresolved after conciliation, it will be referred to the Labour Court for investigation and recommendation.

Regarding the other issue specifically referred to by the Deputy, it is the case that employees are entitled, in accordance with the Payment of Wages Act 1991, to receive payslips. In the event that an employee believes that his or her rights may have been contravened and would like to seek redress, the WRC is the appropriate body to contact as a first step. The WRC provides an information service on the obligations of employers and the employment rights of employees at its website www.workplacerelations.ie. It also operates a lo-call information line, on 1890 80 80 90, which provides information to both employers and employees. I ask the Deputy to bring this information to the attention of the employees at the company in this instance and to encourage the employees at the company to avail of the extensive services provided by the WRC.

The workers in question are now getting organised and taking all the appropriate action. The conditions they face are horrific and similar to those relating to slavery. The conditions in question are primarily focused on migrant workers. Previously, it appears to have primarily involved Polish workers but it now relates to Romanian workers. However, Irish workers are also exploited and stand in solidarity with their workmates. The workers are not receiving SEO rates. They are receiving flat rates that are significantly lower than SEO rates. They are not receiving payslips and have not received them over an extended period. There are other layers of exploitation on top of that. For example, workers have been pressured to rent at extortionate rates from a foreman and when they leave that accommodation, they are told that there is no more work for them. The situation is horrific. Will the Minister agree to talk to her colleagues and try to get a labour inspectorate team sent in to investigate the situation?

As I indicated earlier, I am not familiar with the details of this dispute but I encourage the employees to bring it to the attention of the WRC in the first instance. I ask them to make contact with the WRC because they have rights. This type of behaviour should not be happening and the WRC is there to deal with those kind of issues because we do not want to see any employee victimised or treated unfairly. I ask the Deputy to advise the workers to make contact with the WRC.

I think the workers will contact the WRC very shortly if they have not already done so. I draw attention to the fact that the company is due to start work on a publicly-funded project relating to the new national children's hospital. Obviously, if what I am saying is accurate, and I very much believe it is, it would be completely inappropriate for such exploitation to be happening. It is inappropriate for it to happen anywhere but particularly so with a publicly-funded project.

The other issue is that there appears to be quite widespread defrauding of Revenue as a way of bulking up the net pay the workers receive. The workers are given very large travel and subsistence allowances that are not subject to tax in order to increase their net pay but in an illegal fashion that may have resulted in a loss of millions of euro to Revenue in recent years.

I agree with the Deputy that the exploitation of workers is wrong and should not be happening. I can only say that there is a very strong and robust system in place through the WRC. I strongly urge the workers to make contact with the commission.

Startup Funding

Thomas P. Broughan

Question:

33. Deputy Thomas P. Broughan asked the Minister for Business, Enterprise and Innovation the measures she is taking to promote co-operatives here; if there are specialist supports for co-operatives; and if she will make a statement on the matter. [6084/18]

As the Minister knows, almost 20% of the world's population are members of co-operatives of one kind or another in an economic sphere with perhaps 300 million workers. We have our own tradition with the Irish Co-operative Organisation Society and the credit union movement in particular. I recently asked a series of questions about the kind of supports we give co-operatives and whether the 31 local enterprise offices, Enterprise Ireland and other organisations could do more to promote the co-operative ideal and encourage more startups.

I thank the Deputy for raising this matter. The co-operative model is one of a number of legal options available to those considering establishing themselves in business. The different models have their own distinct characteristics. It is, of course, up to each individual operation to choose the model that best suits the nature of the business and the desired ethos of the entity. The Department does not promote one business model over another. My Department's role is to facilitate the development of co-operatives rather than actively encourage or promote them. My responsibility lies in the legislative provision for co-operatives in general. Any initiatives to facilitate or promote the development of co-operatives in particular sectors, for example, child care, education, housing, energy retrofitting or environmental protection, would be a matter for my colleagues in the relevant Departments.

My Department supports co-operatives in the same way it supports other enterprises.

My Department provides a range of grants and funding streams for ambitious start-ups, principally through the local enterprise offices, LEOs. The 31 LEOs are located throughout the country and provide a range of supports for the micro and small business sector. As the first stop shop for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own business, the LEOs provide a sign-posting service to all relevant State supports and offer direct grant aid to micro-enterprises, which have ten employees or fewer, in the manufacturing and internationally traded services sector which, over time, have the potential to develop into strong export entities. They offer soft supports in the form of training and mentoring and assist with loan applications to Microfinance Ireland.

Enterprise Ireland has a number of targeted supports for start-ups, including co-operative start-ups, that have global ambition, the potential to scale and meet Enterprise Ireland's eligibility criteria. Enterprise Ireland supports enterprises in regional and rural areas to start, innovate and remain competitive in international markets now and into the future. Supports include competitive feasibility funding, mentoring grants and innovation vouchers.

Additional information not given on the floor of the House

I believe that we also need to support co-operatives by having a modern legislative framework under which they can operate. In July 2014, the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act 2014 came into effect with the aim of easing the regulatory burden on co-operative societies, making it easier to start up and run a co-operative as an alternative form of enterprise organisation. It addressed particular problems that were identified in the co-operative sector.

However, I recognise that there is a need for a full root and branch review of the existing legislative framework that has evolved in a piecemeal fashion over the last century. To this end, my Department held a public consultation on the proposed legislative reform between 1 November 2016 and 31 January 2017 and replies received on foot of that consultation are currently being considered. The objective of this exercise is to consolidate and modernise the existing legislation to ensure appropriate simplification and an effective legislative framework suitable for the diverse range of businesses using the co-operative model in Ireland.

In addition, the Registry of Friendly Societies is currently engaged in a modernisation programme to be completed later this year, involving a complete overhaul of its IT system. Completion of the project will result in a more user-friendly experience for co-operatives and for members of the public when they interact with the registry.

The Minister mentioned a general policy with regard to non-promotion. Given the changes happening with international tax policy at European level and so on, is it something that the Minister should perhaps look at? I know she has had distinguished service in the sector in the past. Should we look at it to promote it actively? For example, I know when the Minister answered a question about the 31 LEOs some time ago, there was not specific information about, for example, how many co-operatives were helped over the last four or five years and particularly in 2017. Similarly, with Enterprise Ireland, in regional development and rural areas with high unemployment, how many co-operatives were assisted? If policy changed, would the Minister consider having a co-operative unit within the Department, within Enterprise Ireland or within the LEOs to promote it actively? What steps could the Government take to assist the credit union movement with developments in finance?

I am a huge advocate for the co-operative movement, as the Deputy knows. I worked in the credit union movement, which is one of the greatest co-operative movements across the country. Responsibility for that lies with the Department of Finance. I am responsible for the legislation but we support co-operative movements as businesses through LEOs and through Enterprise Ireland. Supports do exist. I will get the Deputy the information about how many co-operatives have received help. If he wants to come to talk to us about this, I would be happy to sit down and have a conversation with him about the co-operative sector. I believe co-operatives do wonderful work in this country when supported. They take up the slack when other businesses might not want to. They provide a good service. There is a voluntary board and while people working in it get their wages, it is not for profit. I think it is a great principle but my role as Minister for Business, Enterprise and Innovation relates to legislation.

Does the Minister think there should be other changes to facilitate the development of co-operatives? For example, I think the minimum number of members required is seven. Could that be reduced? Could there be a lower number for a group of people who want to start in a co-operative way? Are there changes we could make, while I know this goes into other territory relating to the Finance Act, to the Companies Acts, for example, to facilitate the development of co-operatives? I think many people were shocked at a report published in The Irish Independent recently about the credit union movement and warnings about what could happen to it. As the Minister knows better than anyone, the credit union movement has consolidated immensely over recent years. Many unions have joined together and so on. There seems to be a necessity for the Government to give the credit union movement additional powers, particularly relating to housing finance, to become a key actor in the housing area. It could also give additional powers to support small and medium enterprises, given that there are 12,000 to 15,000 volunteers and workers in the credit union movement, the members of which have immense assets of between €12 billion and €14 billion which could be used in the housing industry, for example.

The credit unions, which I am very familiar with, are regulated by the Central Bank. That proposal can go to the Minister for Finance. There is a need for a full root and branch review of the existing legislative framework that has evolved in a piecemeal fashion over the last century. That is the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act 2014, which came into effect. The legislation needs to be tidied up since there are many different Acts. My Department held a public consultation on the proposed legislative reform between 1 November 2016 and 31 January 2017. Replies received on foot of that consultation are currently being considered. It is anticipated that the legislative review will result in the modernisation of areas including corporate governance, shares, membership and other regulatory matters. That is currently being examined and we will hopefully bring legislation forward at some stage in the future. I am happy to engage with the Deputy on that.

I remind Deputies before we move on to Other Questions that the time slots are 30 seconds to introduce, two minutes for the Minister to reply, one minute for a supplementary from the Deputy, a reply from the Minister, and a final chance for a supplementary. I will be very strict on those times because I have allowed them to go way over the time for Other Questions. To accommodate as many Deputies as possible, I will stick strictly to times, so when the Minister comes to the end of her time, I will say that the rest of the reply is in the Official Report, and I will ask Deputies to give way when their one minute is up.

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