John Lahart
Question:155. Deputy John Lahart asked the Minister for Enterprise, Trade and Employment his plans for the development of the co-operative sector; and if he will make a statement on the matter. [5587/24]
View answerWednesday, 7 February 2024
Questions (155)
Written answers
The Co-operative Societies Bill provides for the most far-reaching reform of the legislation regarding co-operative societies in over 130 years. The Bill provides for a specific legislative framework for co-operative societies for the first time, with societies registering under the legislation being required to adhere to the co-operative ethos. It consolidates and modernises existing provisions and introduces modern corporate governance, financial reporting and compliance requirements, thereby providing confidence to stakeholders and making co-operatives more attractive to investors.
Experience internationally suggests that the potential of co-operatives in Ireland has not been fully exploited and that there is scope for the co-operative model to play a greater role across a wider range of activities. The Bill introduces a modern legal framework which will place the co-operative model on a more favourable and clear legal basis. It will create a level playing field with the situation applying to companies and encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and also for social and community activities.
The Bill includes provisions to make it easier to set-up and operate a co-operative society – by reducing the minimum number of founding members (from seven to three); expanding the categories of founding members to include bodies corporate; providing for audit exemptions for smaller co-operatives; and providing for virtual and hybrid participation at general meetings. The legislation will also repeal the existing outdated provisions on raising funds which will make it easier to access various sources of finance.
In recognition of the significant diversity across the co-operative sector, the Bill seeks to provide as much flexibility as possible, thereby empowering co-operative societies to reflect in their rules what best suits their own particular circumstances.
Drafting of the Bill is ongoing by the Office of the Parliamentary Counsel, in consultation with officials in my Department. Due to the length of the Bill and its complex nature, it is not envisaged that drafting will be finalised and the Bill brought to Government for publication until Quarter 2 of this year.