Dáil debates

Thursday, 7 July 2022

Irish Corporate Governance (Gender Balance) Bill 2021: Second Stage [Private Members]

 

6:15 pm

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I congratulate Deputy Higgins for the work she has done and the many people she has consulted to make sure that this is a rounded and balanced proposal. We had a discussion earlier in the House about changes in regard to other aspects of how enterprise interacts with people in the community, whether in terms of precarious working, protection of employees, and looking at the environmental impact of actions. This is just another example of how modern, progressive enterprise has to adjust to the expectations of society. The target that has been set in the past for the improvement in board representation is simply not being delivered. The vast majority of listed companies are falling short of what they set as a target, even though improvement must be acknowledged. A 20% representation of women on the boards in those companies is simply far too low. It is important if we want to address the many dimensions of gender inequality, be it in pay, opportunities to progress or the way in which people are treated, in order that, for example, other obligations people may have in their lives are recognised by employers. If that is to happen, businesses must set strategic priorities to make this one of the key objectives for the performance of that business. The only way that will happen is if that strategic importance is recognised at board level. Deputy Higgins's Bill is right to address this at board level because that is where expectations from outside of the company itself are set. It is members of the board who are supposed to bring wider community experience and expectations to bear on the performance of the enterprise. The ambition that Deputy Higgins has set in the Bill is absolutely right. The truth is that barriers are often deeply embedded in organisations and the fact that people cannot progress is often not immediately visible. It is not until we change the metrics that people are expected to perform against - the standards and expectations of people looking at the allocation of training opportunities and promotional opportunities - that we will have the sort of change that we need to bring about.

It is important from the perspective of society itself that we recognise the importance of gender equality in enterprise in particular, but also in other walks of life. Our own walk of life is particularly poor in that respect. If it were not sufficient to say that equality is inherently important in every endeavour, including the enterprise sector, the evidence that Deputy Higgins has quoted in her speech underpins why even on a very narrow metric of the performance of a company, the inclusion of more women and more inclusive representation generally within a company and its leadership means that better decisions are taken, companies make more money and they attract a better talent pool.

If we were to be complacent and say we are making progress and that Ireland is changing, when we look at the progress in terms of statistical performance, it is small, it is not a case of dramatic strides forward. We have not made the step change that is needed here. To see changes coming from the boardroom down is the optimal way to get the message out. If boards go a step further and make equality in the workplace a strategic priority for their enterprise, we will then start to see the barriers fall away. We will also see more creative people coming through and better opportunities for people to remain and to develop their talent. We have embedded ways by which women fall by the wayside in the conduct of much of our business. We too in this House have a lesson to learn. Apart from the legislative element, we ought to be looking at how we create equality as a strategic priority of this House. There are lessons to be learned from the initiatives that we are rightly asking those in enterprise to undertake. I am delighted to have the opportunity to support the Bill, which is very timely and appropriate. I wish the Bill well. I am pleased to hear the welcome response to it from the Minister, Deputy O'Gorman.

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