Dáil debates

Tuesday, 12 June 2012

Companies (Amendment) Bill 2012 [Seanad]: Second Stage

 

7:00 pm

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)

I thank Deputy Ross and the Technical Group for allowing me some of their speaking time and I acknowledge the presence of the Minister of State. I was glad to get the opportunity a couple of months ago to raise the issue of the Companies (Amendment) Bill with the Taoiseach because of specific issues I wanted to raise. We have had an interesting debate on this Bill this evening, with bloodhounds and poodles being mentioned. The debate has been wide-ranging and interesting.

There is a welcome growth in the diversity of cultures, lifestyles and backgrounds in our country. It is only by being tolerant of something that is different that respect for the diverse cultures that make up present day communities can grow. This diversity has been a great learning curve for me as a public representative and I have learned that with drive and determination all things are possible. I have seen projects that were just an idea a few years ago come to fruition, despite the downturn in the economy. This has been achieved through the consuming passion that drives communities upwards and onwards. I have learned of the many obstacles that come in the way of communities when they attempt to improve their respective areas or when they try something that is totally new. However, these people drive on and find some imaginative way of circumventing problems. We in this House must put up our hands and admit we are guilty of creating a few problems for these community groups. The Government must also raise its hands in this regard and admit that sometimes some of its decisions are not in the best interest of these groups. There can be no doubt that the wheels of bureaucracy grind ever so slowly, which can be very frustrating for voluntary groups. We must work together to come up with innovative and imaginative ways to deal with problems more speedily.

On the positive side, local authorities must be complimented done by community and enterprise departments, chiefly through the community and voluntary forum. The initiative on insurance has been a resounding success and has saved community groups up to 50% on their insurance costs. The recent proposed changes in charity legislation and the fact that most, if not all, community groups are registered companies with limited liability mean that all groups are now subject to an annual audit to comply with both company and charity legislation. This can prove a financial burden on small not-for-profit groups. I intend to request the Minister to examine the feasibility of setting up a scheme, through the community and voluntary forum, whereby community groups will be able to access audit on a competitive pricing structure. This would be of enormous benefit to the many groups registered with the community and voluntary forum. The Minister may look at ways to allow exemptions for community groups registered with community and voluntary forum whose total turnover is less than a set figure or groups which have no financial transactions but are limited companies for insurance purposes only.

I have a concern also with regard to company law. There should be some system in place to protect small sub-contractors. There have been situations where the State has issued contracts to contractors who have then hired sub-contractors but have not paid them, despite having been paid themselves. Many small businesses have had to close as a result. These contractors walked away with money paid by the State and the taxpayer for public contracts, such as the building of schools or hospitals. I am aware personally of some such situations. I am aware of a particular school that was built where the small sub-contractors working for the lead company did not get paid. This has put those small businesses to the wall. They were glad to get the work at the time but they now find themselves in the situation where they would have been better off if they had not got it. There must be some imaginative way for company law to provide protection for all those who work for lead companies awarded contracts, particularly in the case of public contracts.

Multinational companies have had an enormous impact in Ireland over the years. The Liebherr crane company in Killarney is one such example. Hans Liebherr came to Killarney in the late 1950s or early 1960s and has made an enormous contribution to County Kerry, up to the present day. I was glad to see a two-page article in The Examiner last week which tracked the company's huge success and the huge contribution it has made to Kerry over the years. That has brought a spin-off throughout the country because the company sub-contracts a significant amount of its work. It is amazing that despite the fact it has a big facility in Fossa, it must still outsource much of its work. We must ensure that we create at all times the proper environment to attract people like Liebherr, people who will come in and make enormous changes for the good of the country.

The Minister has said this Bill is proposed in the interest of maintaining a dynamic and flexible operating environment for the commercial enterprises in question. The only objection anybody could have in this regard would be one such as I raised with regard to community groups and that it may need tweaking here and there. Broadly speaking, everyone would support this Bill.

I enjoyed Deputy O'Dea's contribution, but I take issue with him with regard to praise for the IDA. I will not praise people here who only visited my county twice in 12 months with people potentially interested in starting up new businesses. I want to see the IDA being more proactive in County Kerry and would like to see it bring in more people interested in setting up businesses. It is like fishing. If the IDA only brings two in 12 months, it does not have much hope of landing one. However, if it brings ten, 20 or 120, it will surely land a few. Therefore, I will not praise the IDA for the work it is doing on our behalf but will encourage it to be a lot more proactive and workmanlike. While I am pleased to see jobs coming to other parts of the country, I want to fight for my corner and want to see some new start-up businesses coming to it. However, they will not come if the IDA does not bring people to the area. I broadly welcome the Bill and thank the Minister and his officials and all who have worked hard to bring it forward.

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