Dáil debates

Wednesday, 25 June 2014

Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Bill 2013 [Seanad]: Second Stage

 

7:15 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Ní Bille conspóideach é seo. Mar a dúirt an tAire Stáit, is freagra é do na gealltanais d'earnáil na gcomharchumann a bhí sa chlár Rialtais. Ní chruthaíonn sé, mar a bhí geallta ag an Rialtas, creat chun féidireachtaí iomlán samhail na gcomharchumann a bhaint amach, go háirithe i réimsí cosúil le cúram leanaí, oideachas, tithíocht, aisfheistiú tithíochta, cosaint an chomhshaoil, cúsaí iompair agus cúrsaí sláinte. Caithfidh mé a admháil go gcabhróidh an Bille seo le ceardchumainn a gcuid gnó a dhéanamh. Tugann an Bille deis do na comharchumainn tairbhí, ar nós scrúdú atreoraithe, a bhaint amach. Ach mar is eol don Aire Stáit, tá an Rialtas seo ag druidim chun deiridh. B'fhéidir go dtiocfaidh an deireadh le teacht an bhuiséid 2015. I mo thuairim, is é trademark an Rialtais seo ná teip polasaí a chur i bhfeidhm. Dá bhfaigheadh an tAire Airgeadais euró as gach teip an Rialtais gealltanais a chur i bhfeidhm, bheadh críoch leis an ngéarchéim eacnamaíochta sa tír.

Cúpla bliain ó shin, d'fhoilsigh Sinn Féin plean cuimsitheach le fostaíocht a choinneáil agus a chruthú. Leagamar amach tábhacht agus luach ghluaiseacht na gcomharchumann, go háirithe mar fhreagra don chúlú sa gheilleagar. Faoi láthair, tá 12,000 comharchumainn san Airgintín, le ballraíocht de 9.3 milliún duine. Shábháil oibrithe sa tír sin níos mó ná 200 gnóthaí teipthe a bhí ag earcú 15,000 duine. Seo ceacht uafásach tábhachtach don Rialtas seo. Ba cheart go mbeadh an ceacht seo foghlamtha le sé bliana anuas - go gcaithfimid féachaint thar na samhlacha gnó traidisiúnta. Ach leis an fhírinne a rá, is léir go bhfuil drogall ar na hAirí agus ar na bainisteoirí Rannach sinsearacha an samhail mhalartach a thuiscint. Is é tuairim earnáil na tionsclaíochta gur in ainneoin an cúlú sa gheilleagar agus an suaitheadh fisiceach, níl aon gá don Rialtas nó do na Roinn réiteach uaillmhianach a thógaint.

Some 123 million co-operative members own 160,000 co-operative enterprises employing 5.4 million people across Europe. That is a phenomenal figure, which shows the energy and dynamism that exists within the sector. The Government acknowledged the potential of the co-operative movement in its programme for Government commitments three years ago. This Bill does improve the lot and function of co-operatives across the country, but there is no doubt in my mind that even after three years, the Government has not lived up to its objectives or the commitments made in the programme for Government. Ireland ranks among the lowest in the European Union for co-operative membership, enterprises and employees. If one explained to staff of the former enterprise agencies, the county enterprise boards, that one was seeking to set up a co-operative to sort out a particular business need, they would probably have stared back at one, wondering what one meant. At policy, departmental, ministerial and enterprise agency levels, co-operatives’ function and ability to tackle some of the major economic challenges were just not understood and, therefore, not acted upon.

In the document we launched a while ago, we identified a number of challenges facing the sector, including those addressed in this Bill. We also examined the need to develop management and entrepreneurial skills, the lack of data on co-operatives and the lack of understanding of the model among policy-makers. Critically, we acknowledged the need to recognise the value of co-operatives on a social basis and as economic contributors. We set out an initial strategy to develop the co-operative sector and identified the need for a co-operative model to be seen as an option for struggling viable businesses. The Government is not doing enough to support Ireland's indigenous business sector. Unfortunately, as I have stated here before, the cutbacks affecting Enterprise Ireland and the county enterprise boards, and the similar cutbacks affecting foreign direct investment organisations such as the IDA, indicate that the focus of the Government is heading continually towards foreign direct investment at the expense of indigenous business. We should realise that the sectors are not independent of each other but actually interdependent. The Government's enterprise strategy is staid and its failure on co-operatives is an example of this.

Although the Bill is uncontroversial, I wish to note the comments made by Senator Sean Barrett when the legislation was making its way through the Seanad. He robustly argued against the Government's decision to introduce an extinction clause for friendly societies. The Minister of State will have noticed that there are just 48 such societies remaining, with just three having registered over the past nine years. These societies provide for small life assurance benefits and sickness and death benefits for members. I could understand it if the Minister were making a decision to wind down the societies on the basis that something was going wrong with them, such as a scandal or problem, but that does not seem to be the reason they are being wound down. It seems the Government is not providing proper oversight of these organisations and is therefore seeking to wind them down.

The Minister of State mentioned the prudential supervision of friendly societies. As Deputy Moynihan noted, Britain has a totally different attitude in this regard and, obviously, it has seen the benefits these very small organisations bring to their members. They usually provide a service as efficiently as, if not better than, traditional institutions, and at a lower cost to their members. In Britain, the newly-formed Financial Conduct Authority is responsible for the oversight of 10,000 friendly societies, which manage the savings of 4.5 million people, which is not small fry.

Although he was asked why he was seeking to shut down the societies rather than develop them, I believe the Minister of State failed to offer any real explanation. This is another example of the Government's refusal to see beyond the traditional model of enterprise. Ireland has a very long and proud history of properly functioning co-operatives. The first thing we need to get into our minds is that the co-op is a model for a functioning, dynamic, profitable business, and that it offers economic solutions just as any other business can. It often does it more efficiently, for less cost and to the greater benefit of its members.

One of the major problems we have in society today is that there is a yawning gap between the earnings of management and those of the workers on the floor of a factory or an organisation. The co-ops typically do it in a different fashion. They have greater pay equality and a far more equal structure, and we need to take that on board. We need to make sure that the local enterprise organisations, or LEOs, that the Minister of State has worked upon previously are fully tooled up to deal with developing that end of the market. Co-ops have provided housing, finance and jobs in this State when nobody else would. As the previous speaker said, they enabled an agricultural revolution at the end of the 19th and the start of the 20th century, when a whole new sector of our society found itself as owners of land for the first time.

It is vital that we see the opportunity here. I welcome the benefits this Bill has created but I am still am not convinced the Government is taking this sector seriously. I will conclude my remarks by noting that while the Minister of State may bemoan my critical stance on this issue, I do not denigrate the work that has gone into this Bill. However, it is my job to hold the Minister of State to account. The Government promised big in the programme for Government but, unfortunately, has not delivered over three years in. I believe there needs to be a level playing field for co-operatives and that the Government needs to be ambitious for them.

Caithfidh go mbeidh fís uaillmhianach ag an Rialtas nuair atáimid ag caint faoi chomharchumain. Ceapaim go bhfuil deis caillte againn sa Bhille seo.

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