asked the Minister for Industry and Commerce the present position in relation to the formation by him of proposals for legal reform, in order to overhaul the conditions and structures necessary to facilitate the revival of ailing companies with trading and financial difficulties.
Ceisteanna—Questions Oral Answers. - Legal Reform.
29.
My Department have been concerned at the lack of an adequate legal mechanism to aid viable limited liability companies which are experiencing temporary trading difficulties. An intensive study of this problem has been undertaken by officers in my Department. During the course of this examination the legislative provisions adopted by other countries have been studied and the expert knowledge of specialists in this area has been drawn upon. A number of legislative recommendations have been made to tackle these problems and I hope to obtain Government approval for these at an early date.
Could I ask the Minister for his opinion on the view expressed by Fóir Teoranta that the insolvency laws should be made more flexible and whether he envisages the introduction of a system similar to systems in other countries where a company could apply to the court and get a stay of execution while a financial restructuring programme gets under way?
I would not comment on that. As I said in my reply, a number of legislative recommendations have been made in my Department to tackle problems which have emerged. I am going with certain proposals to the Government and I do not think it would be proper or in accordance with precedent at this point to go into the detail of the proposals I will be making to Government. If legislation is decided upon——
Might I draw attention to the fact that Deputy Lyons has taken up two-thirds of the time for 50 per cent of the questions and left poor Deputy Flynn with one-third of the time for 50 per cent of the questions. Is that fair? Ceist 30.
I take your point. On two previous occasions when this Department were up for questioning I got nowhere with my questions. I have no wish to take the lion's share of Question Time but could I ask one final supplementary question and next turn around I will let my colleague in first?
The Deputy is very kind.
I am reasonable and fair, but having noted that Fóir Teoranta have written off £29 million against loans in troubled companies in 1985, almost treble the amount in 1984——
I cannot hear the Deputy properly — £29 million against what?
There was £29 million written off against loans in troubled companies in 1985, almost treble the amount of 1984. Their chairman suggested that the stronger Irish punt might affect the performance of Irish companies exporting into Britain and this could increase the demand for funds besides the other pressures——
A question, Deputy. You are a very difficult Deputy.
I am coming to the question. Fóir Teoranta expect no lessening of the amount of firms seeking aid in 1986. Could I ask the Minister in the proposed legislation he speaks of, does he plan to take steps to improve the quality of management in small and medium sized firms?
I wonder how to follow that. I have said already that I am putting certain proposals to the Government. These have emerged from a study done in my Department drawing on the experience here and the experience of legislation abroad. I have also said that because of the decision to do this I am not prepared to discuss the details. If the Government decide on legislation it will be announced in due course.
Will the Minister treat it with urgency?