asked the Minister for Trade, Commerce and Tourism the steps he proposes to take to deal with the law and practice relating to insolvency; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Insolvency.
14.
I assume the Deputy is referring in the question to the insolvency of companies, rather than of individuals. As regards company insolvency, I will be seeking Government approval shortly to an outline set of proposals which will form the main response to the commitment given in the Joint Programme for Government to curb abuses in the field of company law. The proposals involved will inevitably include attention to the question of company insolvency.
Deputies will be aware that the question of dealing legislatively with insolvent individuals, as opposed to corporate bodies, is one for the Minister for Justice.
The Minister assumes properly. I was referring to the question of insolvency of companies to which he had referred. He has stated that he will be bringing forward legislation. Would he give an indication when he might be in a position to bring it before the House? There are quite a number of people at the moment who feel that the legislation might very well penalise those whose actions, though imprudent, were not fraudulent and would he consider not taking a strong line in that area? I ask the Minister not to involve companies in additional administrative costs which they might not be able to bear and to keep that in mind when framing the legislation.
I can assure the Deputy that all factors in relation to the subject will be borne in mind in drafting the legislation. Unfortunately, a large number of companies have gone into liquidation and the main sufferers in that have been the employees of the companies and small creditors. This has also had the effect of putting some of their own businesses in jeopardy. The most serious view must and will be taken, in my approach to company law, with respect to any act of the people who are responsible for the running of and the policy decisions of the company to ensure that it will not occur, as has happened in the past, that they can walk unscathed away from the wake of human disaster which they leave behind them. It would be my determined approach in the Company Law Bill to ensure that it has that effect. Naturally, I shall also take into consideration situations where, through no fault of their own, companies can and do go into liquidation and that no blame could be attached to the directors or the management of such companies. I accept that there has to be a distinction made between the two.
While I can appreciate the Minister's point of view in so far as his fundamental thinking on insolvencies is concerned, I would hope the formulation of the legislation would be concerned also with encouraging the survival of ailing companies at an early stage. While he is on record as saying before the February Recess that this matter would be considered in this term in the Dáil——
Where?
——would he give an indication that the matter will be before the Dáil before Christmas?
It would be my hope that this legislation will come before the Dáil at the earliest possible time. I could not give an assurance that it will be before Christmas, but certainly it will be early in the new year.
A final supplementary on this question from Deputy Cowen.
Mr. Cowen
Concerning company insolvency, is the Minister aware that the legislation introduced dealing with nonlife insurers has resulted in workers being deprived of their statutory redundancy payments?
That seems to be another question.
The Deputy is anticipating a question.
Mr. Cowan
There are subsidiaries of the PMPA garages folding up and workers are not receiving redundancy payments.
That is anticipating further questions. Question 15.
Mr. Cowen
This is a question of insolvency and the workers play a part in that also.
There are other questions on the Order Paper which the Deputy is anticipating.
Mr. Cowen
Would the Minister reply to my question?
I have no objection to replying, not only to that question but to another question raised, if the Chair would allow me to deal with them.
There is a Private Notice Question down.
I would not only deal with these matters, but would be anxious to deal with them.
Mr. Cowen
Would the Minister not reply to my very important question?
The Chair has called Question No. 15.
The Minister will have to curb his anxiety.
The matter is far too important to be taken lightly. There are questions on the Order Paper and there is a Private Notice Question. There is also a question coming to which these supplementaries would be appropriate. I would be only too willing to answer them.