Tom Fleming (Kerry South, Independent) | Oireachtas source

This is a very progressive Bill which will make Ireland a better country in which to do business. It will enable more businesses to start up and grow and so provide the necessary jobs stimulus which is urgently required. The passing of this legislation will implement a series of changes aimed at reducing the red tape and the administrative burdens imposed on business. It will make company law more accessible for the end-user and easier both in its application and in compliance. It will consolidate existing company law legislation into a single Act which is a welcome initiative. The governance procedure should make it easier for a company to do business. It will reduce the complexity of doing business with other companies.

Local community groups and small to medium businesses are vital groups which avail of the limited company mechanism. Leader funding has transformed rural Ireland in particular and has invigorated many communities and small businesses with the necessary support and grant aid for community projects and facilities. There is a minimum of red tape and bureaucracy in accessing these funds from the partnership bodies. The approach used is from the bottom up rather than the norm in business which is often from the top down. The people are the promoters and in many cases it is voluntary effort. I rate Leader to be the best scheme of funding. I admire the democratic administration of the scheme. The funds are distributed in a business-like manner. It has transformed our communities by enabling the progression of projects.

The facilities and infrastructural development such as the partnership companies have provided a lifeline to many entrepreneurs who have been enabled to set up and grow their small businesses in their communities. These small companies provide jobs and widespread gain for the local area. In order to draw down Leader funding, community groups and small businesses are required to form companies limited by guarantee under EU regulation. These companies will benefit from the streamlining of the legislation in this Bill. Currently there are two benefits to these companies. I refer to the separate legal entity dealing with the banks and which is subject to legislation.

I refer to the benefits of limited liability. Many of these companies were established by community groups with directors who started out as local committee officers. To draw down EU funding under legislation and the Leader programme, they had to incorporate. These people put themselves to the forefront on behalf of their communities. The Companies Act and the requirement to form a limited company is a protection for ordinary people who put themselves at risk for the greater good of the community but there have been alarming instances of breaches of the protections offered under the current legislation. The courts have been lifting the corporate veil to fix directors with liability in some cases. People are then faced with the burden of responsibility for the debts of companies. The current Act is being broken in certain cases and the courts are setting aside the liability benefit. There is a specific need to include in the Bill a strong provision to ensure that it provides definitive protection and clarity as members of voluntary bodies should not have to endure the repercussions of company failure. Many voluntary directors have only a small income. Their home may be their only asset or perhaps a bit of land. They may be struggling with the weather conditions we are getting in the south west in particular. Hopefully, smaller farmers will not be put out of business. They have enough obstacles to preserve their family holdings but are an example of the type of people who sit on local boards for the good of communities. Either limited liability exists or it does not. I ask the Minister to ensure the Bill is clear on the matter of the protection that should be afforded at all times. If it is not, many people will be reluctant to come forward to form companies to obtain funding for local projects.

I am glad the Minister, Deputy Bruton, is present. His colleague, the Minister for the Environment, Community and Local Government, Deputy Phil Hogan, has proposals before Government to rearrange the existing Leader companies and to transfer a sizeable element of their functions to local authorities. It is a retrograde step. I have served on two Leader company boards in my county. At all stages, they were accessible and co-operative in providing services to the public, including step-by-step advice and seed money for people with business plans. The companies have invigorated and transformed rural Ireland. Local authorities have been represented on them through the years, which is how I became a member of one. The boards are very democratic and representative of communities. In many instances, local voluntary committees were made up of people of goodwill and boards were composed on a voluntary basis also. They have been workable, practical and creative. The Minister, Deputy Bruton, has been very proactive in seeking to make it easier for people to create employment and has done excellent work to remove obstacles and red tape and to iron out creases. It is evident that local partnership companies have been accessible and approachable. Without criticising anyone, proposals that might have faced a mountain of obstacles before other bodies have been recognised by the partnerships. They have been the best mechanism to simplify matters and cut out red tape to get the maximum funding for small businesses and communities.

I ask the Minister to convey what I say to Cabinet. Representatives of partnership bodies have come to the Houses of the Oireachtas and held a well-attended meeting with Members. It provided us with a greater insight into what they are achieving. The management and staff of the companies are progressing and developing as time goes on and, at this stage, have real expertise. I ask that if changes are made, the basic core of the bodies is maintained. They represent the best model to deliver vital funding. There are several examples of the massive benefits they have brought to communities socially, physically and infrastructurally as well as in terms of job creation. They have delivered wonderful amenities and facilities for all to local communities. With local authorities having less money, partnership bodies are coming to the rescue to provide playgrounds and amenities for the elderly, including day-care centres. I need not set out everything they have provided. The Minister will acknowledge the abundant success the partnerships have achieved to support, mentor and fund individuals and smaller employers to build their businesses to the maximum. I am sure the Minister will acknowledge that the partnerships are at the forefront with the job creation agencies in delivering to smaller communities.

The spin-off might be someone setting up a business or expanding a business. There is a spin-off for the local community as it keeps people around and keeps the life in the community. Other little businesses benefit and it affects everyone who lives in the area. Partnership bodies are truly representative of the regions they service. In Kerry, there is the South Kerry Development Partnership, the North & East Kerry Development partnership and the eastern side is served by Duhallow, which overlaps north-west Cork and parts of east Kerry. They all working hand-in-hand. There is great co-operation, vision and foresight. Their trained staff are competent and, on a business rating, they are at the top level. If there is an impact, it is a shame if it causes their service to deteriorate. At the moment, funding is dormant and there is a moratorium imposed upon them while the Government deliberates on what will happen. It is shameful that the state of the economy means huge moneys have been approved by these bodies but cannot be accessed. Money cannot be given to the many projects awaiting funding, in particular job creation projects and amenities needed by the communities that have applied. The projects are ready to go and everything has been approved in the democratic fashion in which they work. What is happening is unnecessary. I ask the Government to allow these excellent partnerships to proceed immediately and provide the money to the people waiting. Some of the people may contemplate leaving the country. It would be a shame to see people leaving their locations where we need people to maintain the life in the place. GAA teams are suffering, as are all sporting bodies, as they lose people and try to amalgamate teams to keep their local clubs going. A Government body delivering in an excellent way should not be hindered or obstructed in carrying out its function. Perhaps it can be rectified in the immediate future by the Government.

A matter brought to my attention concerns accountants. A constituent is a qualified accountant and a local employer in south Kerry. He owns a firm of chartered accountants that employs six people. He referred to the Companies Bill and told me the qualified accountants in Ireland are disappointed the Bill does not include a clause to give protection to the term "accountant". It has been promised by successive Governments. Titles such as doctor, dentist, and solicitor are protected so that only people qualified and registered with supervisory bodies can use these titles to trade. That is not case for accountants. Anyone can set up an office and refer to himself or herself as an accountant. This is misleading to the public and is anti-competitive. Qualified accountants are required to be licensed and insured whereas unqualified accountants are not regulated and they compete against registered accountants for clients. Various accounting institutes have campaigned for this for some time and have sent a letter to all qualified accountants sitting in Dáil Éireann. The accountant would be grateful if the Oireachtas raises the issue in the Companies Bill debate. Up to 40 qualified accounting firms operate in County Kerry and provide much-needed employment.

There is no protection because anyone can give themselves the title of accountant. The competition is unregulated. The Revenue Commissioners are accepting anything provided by these people acting as agents. There is no provision requiring qualifications and it should be based on a recognised and certified qualification. The plea made by my constituent on behalf of regulated accountants is that this be taken into account and provision made within the Bill. I ask for it to be given full consideration. It is an unregulated area in an area full of regulations. We need to change these aspects of the Bill.

I received an entrepreneurship report from the Certified Public Accountants. I am sure the Minister has received it. It is an excellent document, with positive proposals. It has been circulated to all Oireachtas Members. All job creation agencies should take some time to pick out the excellent suggestions in it. We can help these people within the Companies Bill. The Minister is striving to make it easier for people to set up businesses and develop their business. The document states:

No one or nobody supports the risk takers. Entrepreneurs have to comply with so much red tape and regulation, employment, revenue, health and safety, insurances, rates, and pays for all these things, including exorbitant bank charges. Where is the support? Several others [who attended the meeting] agreed, saying there is no incentive for people to take risks in starting a business.

Some of the work we are doing in trying to streamline matters requires amendment of existing Bills. Our work should address the concerns of these people. The most recognisable entrepreneur in Ireland is Jerry Kennelly, who has won national and international awards.

He is a wonderful entrepreneur and business person. He is based in Killorglin and is a role model for people in this country. I refer also to Edmond Harty and Dairymaster. This hi-tech business is a major exporter and is a huge employer, like Jerry Kennelly. These people are role models and we need more of them. We should encourage people who have innovative and creative ideas and who are proactive and who will pave the way for modern Ireland to come forward.

This document also states that entrepreneurship should be placed on the school curriculum at primary and secondary levels. The overall aim should be to educate students about the value of entrepreneurship and the needs of enterprise so that they are better equipped to support an enterprise culture in later life. Will the Minister speak to the Minister for Education and Skills? A multipurpose approach could be taken by the Cabinet as this is a very good suggestion.

The document also states that consideration should be given to introducing a specific entrepreneurship module in the leaving certificate business and accounting courses and in appropriate third level courses, that third level institutes should consider establishing entrepreneurship promotion units to identify and nurture potential entrepreneurs at undergraduate level and develop stronger linkages with the SME community and that self-employed individuals and company managers should be allowed to pay the full rate of PRSI and be eligible for jobseeker's benefit.

Jerry Kennelly said the enterprise boards are probably the most useful part of the State support system. He said the first help he got was from an enterprise board. I commend the Minister on the special funding he has given female entrepreneurs. This is a wonderful initiative and it will be hugely successful in incentivising female business people to come forward and lead the way.

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