asked the Minister for Industry and Commerce whether he has under consideration the introduction of a co-operative societies Bill which would facilitate the development of that form of co-operative movement.
Ceisteanna—Questions. Oral Answers. - Co-operative Societies Legislation.
10.
Co-operative societies are registered under the Industrial and Provident Societies Acts, 1893 to 1978. The question of a new Act specifically for co-operatives has been mooted from time to time but I have no plans for such legislation at present. I have no reason to believe that the present legislation has proved a significant obstacle to the establishment of co-operatives but I will keep this aspect under review to ensure that their development is not hindered.
I wish to ask the Minister if he has received a request from the Irish Co-operative Organisation Society or if such a request has been received by his Department asking for amendments to the law.
The answer to the first question is yes, I have had a meeting with that society in the last couple of weeks and we are pursuing the points made by them. Submissions have been received also from another organisation which might impinge on the whole revision of the situation.
Would the points made by them require amending legislation and, if so, has the Minister made any decision as to whether such amendments should be made?
I am sure the Deputy is aware, from his period in Industry and Commerce, of the difficulties in finding a definition that is suitable and that does not change the whole operation of the society. At the same time we have to bear in mind that Kerry Co-op have made excellent progress under that same legislation and that Avonmore will be coming into the market soon. It is the definition that is the problem and I am sure the Deputy has encountered it in his time as Minister.
Can the Minister answer the question I asked him about requests that were made?
I do not necessarily disagree with the Minister that the current legislation is not a prohibition or an impediment on the creation of the societies. Nonetheless, would the Minister not agree that the legislation has many shortcomings and is grossly out of date, considering that the Principal Act is dated 1893? Will the Minister indicate in what way he is responding to the submissions of the Society of Co-operative Studies in Ireland with regard to new legislation and what steps, if any, he intends to take in the legislative area at any stage?
The request made by the society would involve some changes in the legislation. However, they appreciate the problems encountered in that regard. We have received a submission from the credit union movement in this regard also and the whole area is being looked at in that light. I have not yet made up my mind on the matter.
Has the Minister read the report of the Oireachtas Joint Committee on Small Businesses, 1986, in which is set out a detailed analysis of this whole area and in which, on an all-party basis, there is the recommendation that new legislation should be introduced to define co-operatives and to overcome the financial legal framework problems they have? Why does the Minister disagree with the conclusions of that report that amendments should be made to the legislation?
As I have said already, the definition of co-operative covers every type of co-operative activity and at the same time is sufficiently watertight to exclude from registration organisations which are not bona fide co-operatives. As I have said, the whole question is being re-examined in the light of the recent meeting with and the submission from the co-operative society and of the submission, received within the last seven or eight days, from the credit union movement. The general principles underlying co-operatives are well understood internationally. The principles do not have the precision which is necessary in a strict statutory definition. A restrictive definition could be counter-productive, as I am sure the Deputy will appreciate, in that it would limit the registration of some bodies which could be of long term value but do not meet the strict definition in law. However, as I have said, the matter is being re-examined in the light of the two recent submissions.
The Minister should read the report.
Has the Minister given any regard, in his review, to what are known as the co-operative principles of 1966 that have been internationally accepted? Has any regard been given to the basic principles laid down in those principles?
I did not hear the question.
Has there been any regard to the co-operative principles of international law that have been in circulation and agreed since 1966?
All aspects of the matter are being considered in the review which is taking place.
Is that yes or no?