Mr. Chris Gordon:

I thank everyone for inviting us here today. I did not realise the gardaí were out for us. I am Chris Gordon and I am here to represent the Irish Social Enterprise Network, which is the largest open and inclusive network for social enterprises, social entrepreneurs and social innovators in Ireland. I am also able to speak as chairman and founder of the Irish Export Co-operative. I will make submissions about co-operatives and community interest companies today. The Irish Export Co-operative is a large group of small, medium and micro enterprises that have come together to reduce the cost of their exports. In many cases, this is the only opportunity they have to export. I want to present two main company types.

The first one is co-operatives. Speaking today on behalf of members of the Irish Social Enterprise Network, there are certain things I would like to see. The first is the inclusion of co-operatives as a section in the companies Bill to reflect the co-operatives that exist currently in Ireland. While there is co-operative law in Ireland with a

promise for further legislation to be introduced, there are already examples of Irish limited companies that have co-operative rules. It is important to define this distinction

as many of these organisations do not get the recognition they deserve. Co-operatives such as the Irish Export Co-operative trade as limited companies with co-operative rules. The organisation has reduced the cost of exports greatly for all our members. That would be the first submission. There are other examples. I can think of roughly 100 enterprises that are limited companies with co-operatives rules that do not get the recognition under the companies Bill.

The second suggestion is for the inclusion of community interest companies. A community interest company, CIC, is a limited company with special additional features created for the use of people who want to conduct a business or other activity for community benefit, that is, a social mission. CICs can be limited by shares or by guarantee and have a unique statutory "asset lock" to prevent the assets and profits being distributed except as permitted by legislation. This ensures the assets and profits are retained within the CIC for community purposes or transferred to another asset-locked organisation such as another CIC or charity. This social purpose model means staff can be directors and board members. Some of the members here who are already members of charitable organisations understand the frustration caused when people set up a limited company and apply for charitable status only to find that they cannot be a director and a manager at the same time. Perhaps we need to be a bit more aware of the fact that there are companies set up with a social mission that can trade as social enterprises.

A social enterprise, as the Irish Social Enterprise Network sees it, is a profit-seeking company that has a social mission. A social mission could be charitable, such as preventing homelessness. These social enterprises sell products or services to make a profit that can be used to further its mission, which is generally for community benefit. Community interest companies, CIC, where directors can also receive remuneration, have the significant benefit of reducing the risk aversion that is common to charities with voluntary boards. While there is nothing in a CIC that cannot be done by a traditional business, its community benefit reporting, community tests and asset locks gives confidence to funders, commissioners and the public that it is a genuine social business rather than a cleverly marketed private business.

As the European Union will pass money through the social business initiative in 2014, the non-inclusion of social enterprise clauses will lead to significant problems for Government and society if not addressed. My overriding goal is to ensure we have a vibrant and fit for purpose Companies Bill that allows for innovative and regulated social enterprise and social entrepreneurship in Ireland. We have seen through demonstrable examples how social enterprise and co-operatives are able to create work and jobs in Ireland and, I hope, boost the economy. I am here on behalf of the organisations I represent to offer pathways and advice on how this committee can implement best practice. I am also able to draw on the expertise of other individuals who were unable to attend this meeting. These individuals would be happy to make themselves available to the committee.