Vol. 432 No. 6
12 Mr. Gilmore asked the Minister for Enterprise and Employment if he has satisfied himself with the operation of the examiner system as provided for in the Companies Act, 1990; if he plans any changes in view of the experience to date; and if he will make a statement on the matter.
Some months ago, I publicly indicated my intention to undertake, later this year, a review of the Companies Acts with particular regard to the examinership legislation. The question of any necessity to change the legislation will be addressed in the context of this review.
I would also like to take this opportunity to repeat my invitation to all interested groups to play their part in this process by forwarding to me, as soon as possible, their views on change and improvement.
Am I wrong in detecting from the Minister's reply that he is backtracking on a very hard commitment given some months ago to review the operation of the examiner system? If I am wrong, does the Minister agree with the various criticisms that have been advanced of the operation of that process, that only about one-third of the companies that resorted to its use actually continued to tread their way through it and that in recent times, because of the experience of the majority of companies that sought protection of the examiner, there has been almost a total fall off in the use of that section of the Act? Does the Minister also agree that it is generally the view of business that amendment is required? I am not trying to score a point but my understanding is that the Minister gave a hard commitment some months ago to bring forward amendments.
I am not satisfied with the existing operation of the examiner system. I have been looking at it. As soon as I can I will let the House know the results of my deliberation. I am delighted that the Deputy is agreeing with the banks for once because they have sent me a very strong submission indicating their displeasure with the operation of the examiner system.
I am not agreeing. It is a case of review. The banks managed an examinership in a company in my constituency but they were the obstructing force and they undermined the efficacy of the examiner system.
A number of submissions have come in. One hundred and twenty appointments of examiners were made between August 1990 and August 1992. None was made between August 1992 and May 1993, although one or two have been made recently. The appointments were a flurry after the Act and since then things seem to have stopped, which would indicate that the marketplace is saying they do not have faith in the system. It is necessary to look at it urgently.
For the purposes of making life easy for the Ceann Comhairle, do I take it the Minister is not promising legislation to the House?
I am not promising legislation. I am promising to speed up the review of the examiner system and let the House have the results of that review as soon as possible.
I am grateful for Deputy Rabbitte's consideration.
Can the Minister indicate the timescale of the review of this Act? The Minister will be aware that many Deputies have received cogently argued cases from different bodies recommending change. Can the Minister say that by October he will be in a position to promise to change the Companies Act if necessary?
I would be foolish to promise to review the entire Act which is arguably the largest legislation ever enacted here. We are looking at the examinership proposals at the moment. The Government has also established a small businesses task force. I will ask that task force to look first at the examinership system. I hope to meet the October suggestion on the examinership question.
Would the Minister of State not consider that the Enterprise and Employment Committee of this House is a body to which this matter might be referred so that it could be debated in public? That committee could be given some useful task to perform in relation to amending the law and receiving submissions.
I will consider the suggestion.
