——discussions between the Opposition and the Government on this matter. This is motion No. 10 on today's Order Paper in the name of the Minister of State, Deputy Nuala Fennell. I understand that the Opposition have some suggestions to make in this regard. Following discussions with the Opposition Whip this morning it was decided that it would be best if we could take these into account in framing the final motion to be presented to the House.
Therefore, it has not been possible to proceed with that committee today. But it is the intention to proceed with it this day week, when Deputy Fennell will be moving it. I am sure that she will be anxious — as will be the Government — to take into account the suggestions of the Opposition in regard to their terms of reference which I understand will be constructive, as have been their suggestions in respect of the other committees.
If I may turn now to the Joint Committee on Legislation. I am aware of the consensus which exists in this House regarding the need for improvements in the legislative process. This consensus was clearly illustrated in the many valuable contributions made by Deputies in the debate on Dáil reform earlier this year.
The primary function of this committee is to modify various aspects of the legislative process by improving the method of input of Members of this House and of the Seanad and by providing for greater participation in the legislative process by the general public. What is notable in the functions of this committee is the proposal that investigative hearings in public will be a regular feature of its work. The committee will have power to invite written and, if considered necessary, oral representations from individuals and interest groups outside the Oireachtas on Bills or other legislative proposals referred to it; a legislative proposal could include, for example, draft heads of a Bill as well as the circulation of the Bill itself.
I envisage this aspect of the terms of reference of the new committee as being a major step forward in reforming the legislative process. It will pave the way towards the establishment of a direct link between those formulating and processing legislation and those members of the public who will be affected by it when enacted. In assimilating the views of outside parties and in presenting the results of these hearings in its report to both Houses, the committee will provide Members with valuable information which will be of help to them in their assessment of the legislative measure. The terms of reference provide that a Bill or other legislative proposal, other than measures relating to the budget, can only be referred to the Joint Committee on Legislation with the consent of a member of the Government. However, it is my hope that the work of the committee, over the next year or so, will prove to be of such value that the selection of Bills for public examination ultimately will devolve to the committee itself. It is envisaged that consultation will take place between Government and Opposition before any Bill or other legislative proposal is referred to the committee for the taking of evidence or for a public hearing under paragraph (1) (a) of the motion establishing the committee.
It is my concern that the role of the backbench Deputy be given its due recognition and importance. Central to the success of representative democracy is the level at which Deputies make known the interest of the public which they represent. Accordingly, provision is being made that, subject to the prior approval of the committee, any Member of either House who wishes to do so will be able to participate fully in any investigative hearings.
Perhaps I might amplify that. Obviously the committee will be holding hearings on a wide range of legislation in respect of some of which there will be members who will be particularly specialised. One value of this procedure— whereby a Member other than a member of the Committee on Legislation can participate in the hearings — for example, will be to allow the spokesman of the Opposition Party to participate in the hearings on a Bill which affects his area of responsibility, even though he might not be an actual member of that committee. Naturally enough, there will have to be some control on such activity, hence discretion is given to the committee in this matter as to who they should allow participate in addition to their normal membership.
The opinion has been expressed in this House that if in the past we had outside contributions to the legislative process of the type envisaged some of the laws on our Statute Book would be somewhat different in detail and workings and somewhat better. There are few Deputies who would disagree with this, and I believe that the Joint Committee on Legislation, through the investigative hearing process, will help to make for better law in the future.
The new committee will combine the functions of the existing Joint Committee on Consolidation Bills, and the Seanad Committee on Statutory Instruments. It is, I think, important that a consolidation of our committee system should carry with it a streamlining of the functions of other committees. While it was the intention to incorporate the functions as well of the Committees on Private Bills in the new Legislative Committee, the issues involved here are very complex and arise only once or twice every five years or so. Accordingly, those functions, that is the ones in regard to Private Bills, will remain separate from the new committee.
In adopting the functions of the Seanad Committee on Statutory Instruments, the new committee will be fulfilling an extremely important function in its own right. However, many Deputies have expressed a sense of dissatisfaction as to the validity of a committee which reviews the making of statutory instruments but which only has power — as is the case with statutory instruments at present — to accept or reject the instrument. Under our present procedures amendments cannot be recommended. I believe that the practice of rejecting a total instrument which may be unacceptable in one article only is an archaic and unnecessary one. This is why the new committee, in addition to the power to recommend annulment, are being given power to recommend amendments. The committee will also be in a position to require written and oral submissions from the Department or instrument-making authority involved so as to aid them in their consideration.
The Joint Committee on Legislation will also have a function in examining and reporting to both Houses their opinion on the reports of the Law Reform Commission. In including this provision in their terms of reference, I have sought to provide a forum in the Oireachtas in which law reform matters can be considered. The type of assessment and subsequent reporting will lead us inevitably to the point where various reports and recommendations of the commission will be put to the use for which they are intended, namely, as the basis for the formulation of legislation.
The terms of reference also include the general function that the committee keep the law under review and bring forward proposals for law reform. This would be normal for such a committee and will enable members of the committee to look at matters which they may consider relevant beyond what has been considered by the Law Reform Commission to date.
Under the proposals for the Joint Committee it will be possible to combine both the Dáil and Seanad Committee Stages of a Bill. This provision will not, of course, apply to Money Bills. The advantage which such a system will confer is that, in particular with highly technical Bills, a sub-committee of the Joint Committee on Legislation can act instead of a Committee Stage on the floor of the Dáil and Seanad. Both Houses will then be able to consider the measure again in Report Stage. However, nothing in this resolution will prevent this House or the Seanad from exercising its right to have its own Committee Stage if it sees fit. It will only be with the agreement of both Houses that the Joint Committee on Legislation will deal with Committee Stage of any particular Bill. This provision should not alone expedite legislation but will permit serious technical consideration of a measure outside the time constraints which can exist in both Houses.
As a rider to the proposal that the Joint Committee deal with the Third Stage of certain Bills, it has been provided that either the Minister or Minister of State responsible for any proposal under examination will be an ex officio member of the committee for that purpose. In addition, the committee will be able to draw on the special expertise of individual Deputies for detailed Committee Stage examination of Bills as provision is made for the participation of any Member of either House in this process.
There is a general power included in the terms of reference for the appointment of sub-committees. This will enable the committee to divide up their work on a rational basis, appointing sub-committees to deal with the Third Stage of Bills, other sub-committees to deal with specific investigative hearings, others to deal with law reform, others to deal with statutory instruments. However, all reports of sub-committees will be submitted to the Dáil via the Joint Committee.
Finally, I would expect that Members will co-operate and participate fully in the operations of this committee. I believe that it has the potential to be the agent of very significant reform in our parliamentary institutions. It is my intention that the committee will operate initially on an experimental basis and that Members will have a full opportunity to debate the usefulness of the committee in their operations after a period of, say, 12 months.
Finally, I wish to refer to the Joint Committee on Small Business. The Programme for Government provides for the establishment of a committee of the Dáil and Seanad to assist in the development of the small business sector of the economy, and make such recommendations as they think necessary. This committee will comprise nine Members of the Dáil and seven Members of Seanad Éireann.
The experience worldwide is that small firms show greater adaptability and resilience than many larger firms to the vicissitudes of the business and trade cycles. Members of the Oireachtas are now being given the opportunity to apply their collective talents and wisdom to the question of developing a more dynamic small industry sector in Ireland. In particular I would envisage that the committee will devote their time to: an assessment of the performance of the small business sector; the identification of obstacles to small business development; and the development of recommendations for new policies and programmes.
The terms of reference have been constructed in such a way as to allow the committee the widest possible scope in their deliberations on the small business sector and to come forward with proposals on many areas crucial to the development of this sector. Deputies are being asked to put forward proposals in respect of the development of Irish small industry which, despite its progress to date, still lags behind that in other member states of the EEC.
At present there are 5,500 manufacturing companies in Ireland. Of these 82 per cent are small firms employing up to 50 people. Medium sized firms, 50-200 employees, account for 14 per cent with the balance of 4 per cent being accounted for by large firms employing 200 workers or more.
Following the launch on a pilot basis in 1967, the IDA's Small Industry Programme was extended nationwide in 1969. In 1978 SFADCo were given a special mandate for the intensive development of small industry in the mid-west region. The regime of State assistance has been adapted and modified throughout these years to respond to the growing and varied needs of the small industry sector and the increasing entrepreneurial skills of Irish management. In 1978 the Enterprise Development Programme was introduced and additional incentives in the form of loan guarantees and interest subsidies were made available for first-time entrepreneurs possessing managerial and technical skills who had not formerly owned a business of their own. More recent developments include the assignment of a small industry specialist to each of the IDA's regional offices and the initiation of a new concentrated small industry programme on a pilot basis in Cork city and the non-designated areas of the country.
I would expect that the proposals which the committee will bring forward will be well developed — merely putting down what might be laudable objectives will not represent progress. Accordingly thought and effort will be required of each committee member.
A brief word now about the terms of reference of the committee. The situation has developed where for administrative expediency the definition of small industry in Ireland differs between State agency and State agency and between official and private industrial organisations. A need for a common set of criteria is apparent.
I am particularly conscious that the successful development of first-time enterprises is strongly influenced by the ability of the entrepreneur to receive the necessary loan finance on attractive terms for either working capital or fixed asset investment. I am not altogether happy that the banking community adopt the right approach to the provision of loan finance for industry. While it must be recognised that the banks have a responsibility to their shareholders, they also have a wider responsibility to the community, particularly in these recessionary times, to act as a catalyst for the promotion of enterprise. The time has come for an abandonment of the traditional conservative approach to the provision of finance for "risk" enterprises. I am at present engaged in discussions with the banks about the possibility of providing venture capital type finance for industry. I have also met the Stock Exchange in this regard.
The importance of research and development and innovation in industry cannot be overstressed. It is imperative that the necessary mechanisms and incentives should be available here in order to ensure that Irish small business can participate in any financing scheme proposed at EEC level.
Ireland is highly dependent on exports for continued economic growth and, accordingly, it is necessary that the range of export finance schemes already available be fine-tuned to ensure that Irish small business will not be hampered from benefiting from the export opportunities arising from the upturn in the world economy predicted for later this year.
I am particularly conscious that, in addition to attracting overseas investment, future wealth and job creation will depend to a large extent on the exploitation of the opportunities for linkages between indigenous small industry and the medium and large overseas industries attracted to locate in Ireland.
The potential of the sector cannot be fully utilised if the management structure of companies is not adequate to the challenge facing industry in the present competitive environment. Management retraining schemes will form a crucial part of any successful development effort in this sector in the coming decade.
The Minister for Finance is establishing a Committee of Inquiry which is to recommend a simplified tax regime for family businesses. The House would, no doubt, welcome the Joint Committee's observations on this work.
Finally, it is particularly appropriate that this Joint Committee should be established in 1983 — the year designated by the European Parliament as the year of the small and medium-sized enterprise.
Before concluding I should like to draw the attention of the House to the following printing errors which occur on the Order Paper:
Motion No. 7, column 2464, paragraph 7, should read:
That any Member of either House may attend and be heard in the proceedings of the Joint Committee or a sub-committee in relation to a matter comprehended by paragraph (1) (a) subject to the prior consent of the Joint Committee.
The word "due" was placed here in error.
Motion No. 9, column 2467, paragraph 5, should read:
That the quorum of the Joint Committee shall be four of whom at least one shall be a Member of Dáil Éireann and one shall be a Member of Seanad Éireann and that the quorum of each sub-committee shall be three at least one of whom shall be a Member of Dáil Éireann and one a Member of Seanad Éireann.
The paragraph as it appears on the Order Paper does not make sense.
Motion No. 9, column 2,467, paragraph 6 should read:
"Resolution" in place of "Order" in line 3.
This is only an expediency motion, the order for the Small Business Committee will come around after the Seanad has discussed the expediency motion.
I should like to thank all those who have been of assistance in getting the process of Dáil reform this far. Already I expressed my appreciation of the constructive approach adopted by the Opposition in the many consultations I have had with them. I spoke of the Government's anxiety to look constructively at the proposals which the Opposition recently made in this area. The House and the country at large may not be aware that considerable progress has been made in other matters and, of course, proposals for Dáil reform are also proceeding in the Committee on Procedure and Privileges. That committee are now meeting on a weekly basis to consider various proposals to improve and to streamline the procedures of the House. There has been a positive and constructive attitude in the committee towards the proposals in relation to these committees. The extent of the valuable committee work this House already does is greatly underestimated. That work will now be enhanced by the broadening of the scope provided for in these committees.
It is my earnest hope that it will be possible for the various media, press and otherwise, to give suitable prominence to the work of the committees, to show the very valuable role being played by public representatives and the role that will be played by them to an extended degree in the future as members of the new committees to be established. As the House is aware it is the intention of the Government in due course, after consultation with other parties in the House, to introduce broadcasting here. I do not wish to prejudge matters but it will be discussed in due time. I am not making this a substantive issue now. I merely say that it would be of assistance in drawing attention and public notice to the valuable work Deputies already do on committees as well as here in the House.