Vol. 395 No. 8
10 Mr. Stagg asked the Minister for Industry and Commerce if he will hold an inquiry into the collapse of Balla Co-operative Marts Limited, County Mayo, to establish the reason the company continued trading when it was insolvent for a considerable period of time, with a view to ensuring that suitable insurance or bonding is carried by such companies to protect those trading with them; and if he will make a statement on the matter.
The society mentioned by the Deputy is registered under the Industrial and Provident Societies Acts, 1893 to 1978, which provide for registration and supervision of co-operative societies by the Registrar of Friendly Societies. Under this legislation, the registrar can only become involved in the affairs of a registered society when requested to do so by a specified number of its members. I am informed that, in this case, no such request has been made to the registrar.
I understand that the Minister for Agriculture and Food, in replying to an earlier question by the Deputy on 30 November 1989 — Dáil Question No. 5 — indicated that efforts are being made by all parties involved to achieve a satisfactory solution. I understand that delicate negotiations are still proceeding.
Regarding the question of bonding being required of such societies, I understand that there are certain provisions applying in relation to a licence granted under the Livestock Marts Act, 1967, which is the responsibility of the Minister for Agriculture and Food. The society must also be licensed under the Auctioneers and House Agents Acts, 1947 to 1973, and, in this context, must maintain a deposit of £10,000 in the High Court which may, on application, pay a judgment debt from that deposit.
I thank the Minister for his reply. Would he agree that the company and the society referred to in the question continued to trade, running up debts of £1.5 million knowing they were insolvent? Perhaps my question should be directed to his colleague, the Minister for Justice, but given the earlier reply of the Minister for Agriculture and Food, would the Minister agree that there should be a legal obligation on societies such as this to have insurance bonding against the type of losses now being suffered by small farmers in the west who hope to get about 70 per cent of the money due to them?
There is provision under the Livestock Marts Act, 1967, for some form of bonding but I understand from the Minister for Agriculture and Food that it has not been possible to enforce that properly in regard to marts generally as there is difficulty in getting this type of cover. It is not available as freely as the Minister or marts would wish. I do not want to make any comment on the question of whether the board of this co-op continued to trade knowing it was insolvent as that is a serious matter. If this was the case it would be an offence under the relevant legislation. I do not think it is matter on which I should comment.
Given the fact that the Minister agrees that it is a very serious matter and the company may be — I say that advisedly — in breach of the law, would he not agree that an inquiry is now called for to establish the facts and to see whether it should be referred to the Director of Public Prosecutions?
It is open to a given number of members of the society to request the registrar to inquire into the affairs of the society under the provisions of the Industrial and Provident Societies Acts, 1893 to 1978. This has not yet been done but I understand that one member requested such an inquiry. If the requisite number, a certain percentage of the members, were to do so I presume the registrar would make the necessary inquiries.
Finally, may I——
A final question, Deputy Stagg.
Is the Minister aware that it is proving extremely difficult to find members of the society other than the one member who requested the inquiry?
I am not so aware.
Given the Minister's lack of information about this matter — he obviously has inquired into the matter as far as possible — would he not reconsider the need for a public inquiry in this case?
The Deputy has already put that question.
There is provision under the Industrial and Provident Societies Acts for the registrar to look into the affairs of a society and inquire as to how its affairs are being conducted, but a requisite number of members have to request him to do so. He cannot do so at the request of one member only.
