Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter. The co-operative model is one of a number of legal options available to those considering establishing themselves in business. The different models have their own distinct characteristics. It is, of course, up to each individual operation to choose the model that best suits the nature of the business and the desired ethos of the entity. The Department does not promote one business model over another. My Department's role is to facilitate the development of co-operatives rather than actively encourage or promote them. My responsibility lies in the legislative provision for co-operatives in general. Any initiatives to facilitate or promote the development of co-operatives in particular sectors, for example, child care, education, housing, energy retrofitting or environmental protection, would be a matter for my colleagues in the relevant Departments.

My Department supports co-operatives in the same way it supports other enterprises.

My Department provides a range of grants and funding streams for ambitious start-ups, principally through the local enterprise offices, LEOs. The 31 LEOs are located throughout the country and provide a range of supports for the micro and small business sector. As the first stop shop for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own business, the LEOs provide a sign-posting service to all relevant State supports and offer direct grant aid to micro-enterprises, which have ten employees or fewer, in the manufacturing and internationally traded services sector which, over time, have the potential to develop into strong export entities. They offer soft supports in the form of training and mentoring and assist with loan applications to Microfinance Ireland.

Enterprise Ireland has a number of targeted supports for start-ups, including co-operative start-ups, that have global ambition, the potential to scale and meet Enterprise Ireland's eligibility criteria. Enterprise Ireland supports enterprises in regional and rural areas to start, innovate and remain competitive in international markets now and into the future. Supports include competitive feasibility funding, mentoring grants and innovation vouchers.

Additional information not given on the floor of the House

I believe that we also need to support co-operatives by having a modern legislative framework under which they can operate. In July 2014, the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act 2014 came into effect with the aim of easing the regulatory burden on co-operative societies, making it easier to start up and run a co-operative as an alternative form of enterprise organisation. It addressed particular problems that were identified in the co-operative sector.

However, I recognise that there is a need for a full root and branch review of the existing legislative framework that has evolved in a piecemeal fashion over the last century. To this end, my Department held a public consultation on the proposed legislative reform between 1 November 2016 and 31 January 2017 and replies received on foot of that consultation are currently being considered. The objective of this exercise is to consolidate and modernise the existing legislation to ensure appropriate simplification and an effective legislative framework suitable for the diverse range of businesses using the co-operative model in Ireland.

In addition, the Registry of Friendly Societies is currently engaged in a modernisation programme to be completed later this year, involving a complete overhaul of its IT system. Completion of the project will result in a more user-friendly experience for co-operatives and for members of the public when they interact with the registry.

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