Jonathan O'Brien (Cork North Central, Sinn Fein) | Oireachtas source

As the Minister is aware, I took up this portfolio only some weeks ago. It was not the ideal time to take up a portfolio of this nature in that I was landed with Committee Stage of the Companies Bill 2012 legislation, which is probably the largest piece of legislation this House has ever considered. I spent a great deal of time trying to get my head around that legislation and, in fairness, the Department provided me with comprehensive briefs. We have managed to deal with Committee Stage of that Bill and it will come back to this House for Report Stage, but I was amused last week to find out that we would be discussing a baby Bill, so to speak, this week and wondered why it could not have been done at the one time. In fairness, the Minister has outlined the reasons this legislation must be rushed through the House. There is merit in doing so but the news last week was a bit of a surprise.

The area of examinership is one larger retail stores or businesses have been able to abuse. I do not like using the word "abuse" but in some cases some of the larger businesses have used it as a means to address some legacy debts and issues such as upward-only rents. On the issue of upward-only rents, as the Minister is well aware it was a commitment of this Government to try to deal with that issue but, on the advice of the Attorney General, it was decided that could not be done through legislation. I do not know what the advice was to suggest that but it is an issue that goes to the heart of many of the problems with which smaller businesses are having to deal. The fact they are burdened with very high rents and leases they are unable to get out of has meant the owners of many viable businesses have a huge debt around their necks. If they did not have that debt, it is possible that some of them would be able to invest that additional funding in job creation and expanding their businesses. For that reason, it is unfortunate we have not been able to deal with the issue of upward-only rents through legislation.

While I understand the need to expedite this legislation, there are other areas under the Minister's portfolio which one could argue warrant equal urgency. On the issue of workers' rights, for instance, on which Sinn Féin has long campaigned, from what I am led to believe the Department issued a consultation document about a year and a half ago on overhauling legislation on workers' rights and safeguards for employees. It is my understanding that consultation document has not been finalised. The Minister might comment on that in his closing remarks.

When it comes to workers' rights there are other areas in need of urgent review. Some workers are subject to very little regulation. There is very little regulation in the employment and the working conditions of au pairs. That is an issue for employees but it is also a child safety issue and an area on which I would like to see the Department focus. Obviously, the upward-only rents is another area in need of such a review.

Regarding the examinership process, giving smaller companies the option of availing of examinership through the Circuit Court is to be welcomed because many small business have been left with huge legacy debts, sometimes through no fault of their own but as a result of the economic circumstances in which the State has found itself. They are viable businesses but because of that legacy debt they will find it increasingly difficult to continue in operation. Giving the option of going to the Circuit Court is an opportunity for the owners of those companies with that odious debt around their necks to put in place good business plans and free up some capital when they come out of the examinership process. That will allow them extend their businesses and perhaps create an additional one or two jobs in the local economy. The benefits of that will be far-reaching. We will support the passage of this Bill.

Sections 3 and 4 dealing with the filings of the Companies Registration Office are to be welcomed as they bring the processes up to date. Section 5 on the disclosure of information to the Director of Corporate Enforcement regarding the functions of company directors is to be welcomed also and which we will support. On that complex area of company law, which I am trying to get my head around having the brief only a few weeks, we could do more work on the disclosure of information, something I will tease out in committee. It is important that all information is disclosed on tax compliance, whether the company has been involved with a worker and so on. The more information disclosed, the better.

Section 7, dealing with the regulation and investigations of the penalty systems, is welcome also. Deputy Calleary made a valid point on the buy-in of professions to the system. Opening up the examinership process to smaller businesses at Circuit Court level is a significant change and there is a need for solicitors, barristers, auditors and even judges to buy into the new process. The Deputy made a valid point also on the role of the local enterprise offices, LEOs, and being able to get that information out. There is no point in this House passing legislation unless the very businesses that could avail of the examinership process benefit from that and can emerge successfully at the other end. The Minister stated at the outset of his contribution that in the region of 75% come out of examinership and continue to operate as a viable business. If that is the case, and we are opening up that process, we must be able to get that information out to those businesses and inform them that they have that option, that we are trying to deal with the issue of smaller companies' legacy debt, that we want to nurture that industry and that this legislation will go a long way towards doing that.

For that reason we will support the Bill and its speedy passage through this House if that is what the Minister chooses to do. I presume it is the Minister's intention to have the Bill passed by this House before we adjourn for the Christmas recess. If that is the case, we will help facilitate that.

See this speech in context