Willie Penrose (Longford-Westmeath, Labour)

According to the European Fund and Asset Management Association, Ireland is the fifth largest investment funds jurisdiction in the EU behind countries such as France, the United Kingdom, Germany and Luxembourg. If we consider jurisdictions in terms of the international distribution of funds rather than the sale of funds, Ireland is the second largest investment funds jurisdiction in the EU behind Luxembourg.

The rationale put forward by the Minister of State is that many of the countries that recently joined the EU have now become extremely competitive in this regard. They are actively trying to develop an investment funds industry and establish themselves as a place of domicile in an attempt to attract business for the more established jurisdictions.

On the previous occasion the Minister of State spoke to us he indicated there was significant revenue involved and that each fund attracted to be domiciled here results in the creation of an additional one and a half jobs but in the past five years, from 2004 to 2008, the net number of funds established in Luxembourg was approximately 1,400 whereas we lost funds in that regard. We have lost out on an opportunity to create jobs and that is why we must move with the times. It is necessary to ensure that we in Ireland improve our investment funds flow offering to ensure we become the regulated funds domicile of choice for international asset managers, and that is what the Minister of State is trying to do. We must offer an environment and a base that is as competitive as possible and that we match what is on offer in other competing jurisdictions.

In that regard we must keep abreast of what is happening. The Minister of State has tabled amendments which amend part of the new section 256G that will be inserted into the Companies Act 1990 by section 3 of the Bill. The amendments will alter section 256G and sub-sections (6) and (7), both of which deal with procedure connected with the court cases that can be initiated by the shareholders or creditors who have a desire to halt the deregistration of funds coming from the Irish companies register. It is important that facility is available. The Minister is doing that in amendment No. 3 by adding the migrating company and the Central Bank or Financial Regulator to the list of parties to whom notice must be served when a creditor or a shareholder applies to the court under section 256G. Until now notice had to be served on the Companies Registration Office and on the company creditors. There is much merit in including the migrating company to ensure it will be served with the relevant notice, given that any proposal on migration companies would be subject to a court case or the potential of a court case.

If supervisory jurisdiction is to be vested in the Central Bank or the Financial Regulator it is important that they would also have the appropriate and adequate notice to invoke their jurisdictional and supervisory powers to deal with the funds. A decision must be made in the first instance with regard to whether the outward migration should be allowed. The matter will then become subject to a court. 2 o'clock

Amendment No. 4 gives the Central Bank and Financial Services Authority of Ireland and the migrating company the right to participate fully in any court hearings. That is extremely important because the courts should not be making decisions in the abstract, with only one side of the argument being heard. The amendment is extremely important because it will give the court access to all the relevant details and facts before it makes a decision on whether to make an appropriate order in any case.

Amendment No. 5 is also important and the courts should take note of it, particularly in commercial law cases. The amendment gives some direction or assistance to the courts in respect of the factors or issues that should be taken into account when they are making their decisions. The courts should be given as much guidance as possible, particularly as they are always trying to divine what the Oireachtas intended when it passed certain legislation. They have used literal, teleological and schematic interpretations in the past and they have the power to consider what is said in these Houses in debates on legislation.

The amendments will add to the Bill. In that context, I wholeheartedly support them.

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