Bernard Durkan (Kildare North, Fine Gael)

I welcome this Bill. We must all agree that any Bill referring to company law is hugely important in any economy at any time, but anything that refers to company law in this economy and to the need to encourage foreign direct investment is of special importance.

At a time of so much instability and negativity, it is hugely supportive of the economy to see people interested in investing here who put their money where their mouths are and invest in the economy and create jobs. While we should not become slaves to this, we need to be able to attract foreign direct investment and to be able to demonstrate to those viewing us from outside that we are attractive to investors. We must also recognise the need to have ongoing investment in manufacturing, services and the financial sector, thereby enlarging our economy in the competitive, global market that exists currently. Deputy Ross mentioned that he had some reservations with regard to the possibility of a financial transaction tax being imposed by some other European countries and the impact this would have. I agree. It goes without saying that no European country will indulge in a financial transaction tax unless it is globally acceptable, because any country becoming part of such a system would find itself isolated and vulnerable. The financial services sector in this country would be hugely vulnerable, particularly vis-À-vis those countries that would not sign up to such a proposal.

In general, it is with regard to the application of company law in the main companies that I look forward to this Bill coming before this House. As I have mentioned many times, I believe there has been a flagrant cavalier attitude to company law in this country, and others, over the past number of years. If adequate regard was had for company law, we would not be in the economic situation we are in, or at least not to the same extent as we are. As one of those who participated in the sub-committee dealing with the 1990 Act, the last major visit we had to company law, I believe we need the consolidation Bill before the House as a matter of urgency. I am aware there are thousands of sections in the Bill, but so be it. In order to be able to work in an environment that is competitive nationally and internationally, it is of huge importance that those involved in companies and investment - those investing now and those likely to invest in the future - can be certain they do so in an environment wherein everybody refers to the same rule of play, the same ground rules and the same level playing pitch.

Even a superficial appraisal of what happened with some major players in this country over the past ten or 15 years would give one a jaundiced view of what was happening with regard to good fiduciary practice, good governance, annual reviews, independent audits, auditors' reports and their implementation, DIRT, and the reforms that were supposedly put into place during that period. Why were these never implemented? Why has every recommendation on company law in the past ten or 15 years been ignored? As a result of a lack of implementation of those basic principles of company law, many people are now out of work. Many in our society are paying the price for those who avoided company law to the extent of being cavalier.

While I welcome this Bill, which is to facilitate foreign direct investment - which we all support - I must point out that major consolidation legislation is eagerly awaited and badly needed, and should be dealt with as a matter of urgency.

There is a tendency in this country to be suspicious of foreign direct investment. There are some in the House who regularly state that people would not invest here if it were not to make a profit. I ask you, a Cheann Comhairle: what other reason is there for investment? Does anybody invest for loss? I have never heard of such a thing in my life. If anybody is suggesting that people would invest for loss or for another purpose, I would like an example, because no one has ever brought such a thing to my attention. To those who say in a critical fashion that people invest here only for profit, I say of course they do. That is what everything is about. It is what keeps the economy turning over.

There are also those who have been critical in the past of foreign direct investors, accusing them of repatriating their profits. What do such people suggest investors do - distribute their profits through charitable donations to the country in general? I have never heard such nonsense in my life. There is no reason people invest except to make a profit and to contribute to society and to social evolution.

We welcome the Bill as it is, and we fully accept what it proposes to do. Incidentally, in my constituency we have long had a positive attitude towards foreign direct investors, and their numbers prove it. We welcomed investors in a similar economic climate to the one in which we are living now, when many wise people were suggesting we should not go down that road but should take a different route involving the setting up of different types of industry which would supposedly be more effective. They were wrong. We commend those companies that have set up here, including Intel, Hewlett Packard and various companies in the pharmaceutical and medical sector. That is the approach we must take in the first instance. On the back of that investment, we must be prepared to encourage other industries to locate here and provide employment in order to maximise the economic impact and utilise all possible opportunities for increasing the size of our economy in the future.

I have long been of the view that we must protect and promote the manufacturing sector. Over the past number of years there has been a theory in this country that we should forget about manufacturing and invest everything in technology. That is a good idea; technological items must be manufactured as well. However, we should never forget that once we become uncompetitive, for whatever reason, in the manufacturing sector, it automatically follows that the same situation occurs in the services sector and, ultimately, our entire economy is affected. Over the past ten or 15 years, manufacturing companies have left this country and gone to adjoining jurisdictions. That should not be happening. We need to ask ourselves, seriously, what the reason is. I have a fairly good idea what some of the reasons are, but I will not go into them this evening, the Ceann Comhairle will be glad to hear. However, we need to focus on this, because every economy depends on competitiveness - how we compare with those in the same market as ourselves. As public representatives we should do all in our power to ensure we are constructive and that, particularly in the present climate, we are positive in encouraging those who want to invest here.

We do not want to see a repeat of some of the things we have witnessed over the past 20 years with regard to the application of company law, such as companies being used as investment houses for the benefit of those seeking to make a quick buck and walk away afterwards. We do not want that in the future and we do not want to give the impression that it is in any way acceptable in this country.

See this speech in context