Damien English (Meath West, Fine Gael) | Oireachtas source

I am delighted to have the chance to thank Deputy Higgins for this Bill, which has allowed us all to focus on a policy priority of the Government. It addresses a very important issue and one I know the Deputy is dedicated to. As with all the work she does, it is extremely well researched and based on evidence. I thank her and her team, some of whom are here, for their work on bringing forward this Bill. The Minister, Deputy O'Gorman, and I have listened to the contributions. It is clear we are all in agreement and I am glad there are so many speakers supporting the legislation.

There is a compelling case for more diverse boards and leadership teams and it has been well made in the debate. There is also a compelling case for positive discrimination. As we look back over history and listen to some of the speeches made in this debate, it reminds us of our duty to make changes. Deputy Bruton often refers to making step changes and it is something I will never forget from my time working as a Minister of State with him. This is what we are trying to achieve here with a real step change.

At a recent Employment, Social Policy, Health and Consumer Affairs Council, EPSCO, meeting, a Commissioner used a term I liked a lot, which is that talent has no gender. It stuck out at that meeting of the Council. We must remind ourselves regularly that talent has no gender. It is important we remember this fact and recognise it at every opportunity. The benefits of more diverse leadership teams in business are well established and well documented. Companies with higher levels of diversity on their boards and senior leadership teams deliver better economic performances and better results for all of us. Increasing employment and leadership opportunities for women has been shown to improve organisational effectiveness and growth in companies. Those companies show greater levels of creativity and innovation, display a better ability to attract and retain talent and generally benefit from enhanced company reputation.

As I referred to regarding that EU debate only a few weeks ago, we saw with our banking inquiry the importance of gender balance and how we lost out as a country by not having a proper gender balance on our banking boards. More and more customers are using their purchasing power to communicate to companies what they value. Research shows that consumers are loyal to brands that commit to addressing social inequalities, such as gender balance, in their actions. This all sits comfortably with today's environmental, social and governance, ESG, agenda of companies and stakeholders. This was referenced by Deputy Bruton. Investors are increasingly focused on diversity. More employees want to work in organisations where gender balance and broader diversity form a part of the focus and of the company culture. Culture is key, and that is what we are trying to change and achieve.

We need a pipeline of talent in companies so that more diverse leadership teams and boards are possible. Young women and girls must be able to believe they can be the business leaders of tomorrow. It is our collective responsibility to ensure this is the case. The policy approach to date has focused on changing the culture of business, with associated voluntary targets set out and monitored by the Balance for Better Business initiative. This is an independent, business-led review group that was established by the Government in 2018 to improve gender balance in senior leadership in Ireland. It is supported by the Department. It was created to make recommendations on how more women can be involved in decision-making at the top level of business in Ireland. The review group examines gender mix in the governance and senior management of companies in Ireland and the issues that arise in connection with the appointment of company directors and senior management. It has set progressive targets to 2023 for the achievement of improved gender balance on boards and in the senior management of these companies. Since the establishment of the Balance for Better Business group, there has been a steady increase in the share of women on the largest listed company boards, from 18% in 2018 to 32% in March this year. I will not go through the other areas of change. They are small changes in the right direction, but they are not the step change we want to achieve and which the Bill aims to achieve.

In Ireland's case, the percentage of women on ISEQ 20 boards has more than doubled in six years. This is positive, but again it is not enough. There have been significant achievements in a short space of time but, as Deputy Higgins has clearly stated, more needs to be done. Change takes time. The progress at board level, however, shows what can be achieved if companies focus on making changes. While change can take time, it is debates such as this and Bills such as this one that can change the timeframe in this regard and drive this agenda at a faster pace. This is something on which we as a Government are delighted to work with the Deputy.

Outside of individual organisations and the Balance for Better Business initiative, much work is being done in the Government system to ensure the full and equal representation of women in Irish business leadership. This includes encouraging and enabling female participation, including through promoting women and girls in science, technology, engineering and mathematics, STEM, and via new models of working, early learning and care that are affordable, accessible and high quality. I am glad the Tánaiste is pushing an agenda on remote working to ensure it will become a permanent feature of work. This is also a major enabler of female participation and gender balance in the workplace, right up to board level. I do not have time to go into all that now, but it is key and I am glad we are driving the agenda to legislate for remote working as a permanent feature.

Legislation that improves and protects equal opportunities in the areas of employment and family-friendly policies can make an important contribution to the broader project of changing attitudes and moving us to a more equal society. Most of us in the House are committed to this agenda. Not only can it prohibit discrimination but also it can aim to ensure full equality and practice through positive action. This Bill is focused on achieving gender balance on the boards of companies, corporations, undertakings, charities and bodies. As the Minister, Deputy O'Gorman, has explained, it proposes a substantial shift in the approach to the issue in terms of scope, obligations and enforcement. The legislation proposes to amend the Companies Act 2014 to achieve its goals. That Act was a large piece of legislation. Very few people in the House have read it. I am one of them, as I chaired the relevant joint committee. Deputy Bruton, who was the Minister then, also read it. It is a massive piece of legislation. It is important we sift through it to make the changes proposed. It is the framework that sets out the rights and obligations of all parties. The amendments in this Bill need careful scrutiny and extensive consultation. We are prepared to do this because this is an important agenda.

Central to any consideration of potential amendments to Irish law are existing EU laws and legislative developments applicable in member states. The Minister, Deputy O'Gorman, explained that a new EU directive to improve the gender balance among the directors of companies listed on the Stock Exchange was agreed recently. Ireland was at the forefront of the work on that directive. It started in 2012 and we drove on that agenda during our EU Presidency in 2013. It is a pity it took so long, but I am glad it has passed and that we can begin to implement it. The primary objective of Deputy Higgins' Private Members Bill is aligned with the proposals of the forthcoming directive that will be transposed domestically by the Department of Children, Equality, Disability, Integration and Youth.

The Minister stressed the importance of not introducing legislation that would run contrary to the requirements of the directive. I am glad that the Government can support the objective behind the Bill. The new EU directive plays an important role in achieving this objective. Deputy Higgins, through her work and research, has acknowledged the importance of Ireland proceeding with the adoption of the EU directive. I am pleased that she has agreed to progress her Bill subsequent to the transposition of the directive. Departments can work together on the Bill and the forthcoming EU directive. We have had a positive discussion tonight. Hopefully, the Bill will bring great change. I thank the Acting Chair for affording me extra time.

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