Dermot Ahern (Louth, Fianna Fail)

I move amendment No. 1:

In page 6, to delete line 1 and substitute the following:

"(b) an arbitration which is not an international commercial arbitration;".

The central amendment in this group is amendment No. 15 which proposes the deletion of sections 33 to 37, inclusive. All of the other amendments in the group arise in consequence of that one step.

When the Arbitration Bill was first published, provision was made for a distinction to be drawn between arbitrations which were commercial and international in character and other arbitrations. The latter were referred to as "standard" arbitrations. The main rationale for this distinction was a sense that in the case of this type of arbitration an additional measure of court oversight might be appropriate. Hence, the High Court was to retain the power it has at present to set aside or remit an arbitral award where there was a fundamental error of law on its face. In addition, a special oversight mechanism was put in place which automatically applied to consumer arbitrations and which could be applied by agreement to other standard arbitrations.

The essence of the oversight mechanism was the retention of the case stated procedure and of the possibility to remit an award where new evidence became available which could materially alter the decision on that award. It quickly became apparent that generally these sections were not viewed in a positive light; they were criticised as being unwieldy and unnecessary and as having the potential to impact negatively on our ability to market Ireland as a centre for international arbitration. Furthermore, they were seen as having the potential to prolong the arbitration process unduly and to add considerably to the cost of that process.

As a result of the remarks made on Committee Stage and representations, I gave careful consideration to the arguments advanced. I have decided that the appropriate course of action is to proceed with the deletion of sections 33 to 37, inclusive. I am satisfied that this will not give rise to legal or practical difficulties. The ability to offer a streamlined arbitration regime which does not distinguish between arbitrations on the basis of geographic residence of parties could be seen as an appropriate modernising development consistent with the aim of the Bill to promote the wider use of arbitration in the jurisdiction.

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