Dermot Ahern (Louth, Fianna Fail)

I move amendment No. 16:

In page 61, between lines 15 and 16, to insert the following:

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The purpose of the amendment is to correct an oversight in the Bill, as published. This is a necessary amendment to section 77 of the Statute of Limitations 1957, which gives power to a court to extend the time for the commencement of proceedings where there is a court order to the effect that an arbitration shall cease to have effect. Section 77 relates to section 39(2) of the Arbitration Act 1954, which provides that, where there is an agreement between the parties that any disputes arising in the future should be referred to arbitration, the court may, in certain circumstances, order that the arbitration agreement shall cease to have effect in order that it may determine the matter at issue. The amendment arises from the fact that the proposed new legislation does not contain a provision equivalent to that contained in section 39(2) of the 1954 Act. The power given to the court by virtue of section 39(2) is only available where the dispute involves an accusation of fraud against one of the parties. It allows the court to intervene to direct that the arbitration agreement shall cease to have effect so that the matter can proceed to a full hearing. However, this power is discretionary and the court is not obliged to intervene when asked to exercise the power it has. If both parties are content that the matter be determined by the arbitrator, court intervention on this point will never arise. The proposal in the amendment is in keeping with the guiding rationale behind the Bill, which is to ensure court involvement in the arbitration process is kept to a minimum, consistent with best international practice.

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