Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

Gabhaim buíochas leis an Teachta as an gceist agus as an tuaraisc ón gcoiste faoi cúrsaí na gcomharchumann. The issue as to whether the Department would establish a co-operative development unit is part of the bigger issue we are considering regarding overall supports for the co-operative sector. I acknowledge the work of the Deputy and committee on this. As he knows, there are a number of aspects. One of the most significant forms of assistance for the sector will be the introduction of a modern legal framework which will place the co-operative model on a more favourable and much clearer legal basis. This will encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and for social and community activities. A modern legislative basis, including strong corporate governance requirements, will also provide confidence to stakeholders and help to encourage investment in co-operatives.

My Department is continuing to engage widely with key stakeholders to raise awareness of the proposed legislation and the potential for those who wish to follow the co-operative ethos to grow and prosper under a modernised co-operative regime. This includes ongoing liaison with the co-operative sector and its representative bodies, the enterprise development agencies, other relevant Departments, professional advisers and direct communication by the registrar with individual societies.

Supports to enterprises through the enterprise development agencies are not necessarily based on the model of business formation. The choice of model is a matter for the founders of any business and this Department does not promote one model over another. The forthcoming co-operative legislation will complement the already modernised and consolidated regime applying to companies.

Co-ops are not homogenous as they differ in size, ownership, sector, and so on. As already said, supports to enterprises are not based on the model of business formation but on the distinctive needs of a particular enterprise at a key point of its journey. At the moment, it is considered that the most appropriate way to raise awareness of the potential benefits of the co-operative model is through existing channels and structures. However, my Department is keeping the matter under review. We are continuing to review the entire pre-legislative scrutiny report. We will come back to the committee with updated information in the autumn.

See this speech in context