asked the Minister for Industry and Commerce the proposals if any, he has, to amend company law to facilitate the establishment of workers co-operatives; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Workers' Co-operatives.
10.
Co-operative societies, including workers' co-operatives, are governed by the Industrial and Provident Societies Acts, 1893 to 1978, which provide for their registration and supervision by the Registrar of Friendly Societies.
I have no reason to believe that this legislation is inadequate or has proved to be a disincentive to the establishment of workers' co-operatives. I am, nevertheless, prepared to keep the position under review and to amend the legislation should this appear necessary or desirable.
Is the Minister aware that there has been a submission with his Department since about October 1986 from the Irish Co-operatives Organisations making specific recommendations in this area, and highlighting the fact that the current company law legislation and the legislation to which he referred dating back to 1893 are totally outmoded, unsuitable and unworkable as far as the aspirations of workers in co-operatives are concerned?
I am aware that co-operatives are restricted in the amount of share capital they can raise from each member, in the registration of charges against their assets, and that they cannot advertise for funds, but co-operatives have been very successful in devising systems to get around that. I am speaking notably of one major co-operative in the south which established a subsidiary and raised funds in that way. There have been a number of successful co-operatives. There are about 70 workers co-operatives in Ireland at present.
There is ongoing work being done in the Department on the report the Deputy mentioned. If any of these co-operatives are experiencing any difficulties at present or if the Deputy is aware of any co-operative that has a specific difficulty, I would be only too glad to hear from him on their behalf and to give any assistance to help them out of their problem.
My question was not dealing with specific instances but referred to the fact that the Minister's Department have been advised as of October 1986 of the need for updating the legislation. My question asked if the Minister is aware of those proposals, if they are under active consideration and if at any time time in the future he intends to report to the House on his views with regard to those proposals.
I am aware of this report and it is under review. We are committed to a very heavy legislative programme. This matter has its place in the programme but it is not an immediate priority at the moment.
I am glad to hear the Minister's last supplementary, as distinct from his original reply, which was that there were no proposed changes in legislation——
I said work is going on.
Is the Minister aware that in France, Spain and the United Kingdom there has been legislative change specifically to define co-operatives? Is he further aware of the report of the Joint Oireachtas Committee on Small Businesses last year which looked at co-operatives and recommended in this regard? If the Minister talks to ICOS or anybody else he will find there is a compelling need to bring forward such legislation. Will he consider as a matter of urgency drafting legislation not only to define co-operatives but to allow a sinking fund for profits to be put back into co-operatives?
I am aware of the reports the Deputy mentioned and I am also aware that co-operatives recognise distinct business structures based on internationally agreed co-operative principles and want restrictions on the use of the word co-operatives. There are many areas to be teased out and analysed. It is not just a question of giving an immediate answer as to when possible changes might take place.
What will the Minister do?
Perhaps we could impress on the Minister the need to move this matter slightly higher on the Government's list of priorities. He will appreciate that there are small co-operatives with the potential of creating a few jobs. We are not talking about the large co-operatives which are capable of establishing subsidaries. Would the Minister accept that there is a need to enhance the legal position of small co-operatives vis-á-vis banking and other lending institutions, so that they could be in a stronger position to launch themselves in the initial stages? This has proved to be one of the major drawbacks in terms of job self-help, an area this Government are so anxious to promote.
This Government are anxious to promote any kind of job creation.
Here is an opportunity.
I recall, as a Deputy, having given personal assistance to a smaller co-operative which had problems which could be ironed out within the framework of the existing legislation. As I pointed out, there are about 70 worker co-operatives operating here and they have obviously found a way around these problems. The reports mentioned by the Deputies are being analysed in the Department. If I can do anything to help these people I shall be only too pleased to do so. The Deputy can be assured that I will do all in my power to help job creation.