Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

12. To ask the Minister for Jobs, Enterprise and Innovation her plans to establish a co-operative development unit to increase the number of worker co-operatives. [43035/17]

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Leas-Cheann Comhairle will probably be interested in this question on co-operatives. I was disappointed that the Ceann Comhairle took out one line of the question we tabled, which referred to the Sinn Féin alternative budget. We were advised that it would be argumentative, which I find disappointing. I wanted to reference that in what I planned saying. Will the Minister consider establishing a co-operative development unit to increase the number of worker co-operatives?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Many enterprise supports are already available. Grants and supports are available to a wide variety of businesses at different stages ranging from establishment to growth and beyond.

The co-operative model is one of a number of legal options that are available to those considering establishing themselves in business, and 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 supports co-operatives in the same way as we support other enterprises. I have no plans to establish a co-operative development unit in the Department at this time.

The Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act 2014 was aimed primarily at 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 and helps to ensure this model thrives and grows to its potential to promote appreciation of the co-operative as a form of enterprise organisation.

The Department has a strong focus on developing indigenous businesses. We are obviously working with SMEs, which account for 99.8% of all enterprises in the State, and adopting policies which respond to their needs. There is a range of tailored supports for businesses of all types and includes access to finance, management development, mentoring supports, business development programmes, market supports and so on.

There is a structured dialogue with the SME sector. The same range of supports are available to those who choose to establish co-operatives as are offered to all enterprises and to small and medium-sized businesses.

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Obviously, I am very disappointed at the Minister's response. I asked if she would establish a co-operative development unit and obviously she said she would not. I commend Senator Gavan on a policy he developed over the summer and launched last month on the issue of co-operatives which, if implemented, would make significant progress in delivering sustainable jobs in local communities.

As the Minister will be aware, the Department previously had a co-operative development unit. It was established by Government in 1988 but was subsequently dissolved in 2002 by the then Minister. Ireland has had a long history of co-operative businesses since the first one was established in 1889 by Horace Plunkett. However, we have never realised the potential that this kind of business can deliver. Many of these companies have proven to be more resilient and productive and to provide greater social benefits to the workers, their families and their communities. I urge the Minister to work on plans to encourage expansion of the co-operative network. To do that I believe a co-operative unit should be established in the Department.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I know the Deputy has spoken about this previously. His point is that he would like to see more networking and development between the existing co-operatives. I agree with him that co-ordination of the work done by co-operatives would be worthwhile to examine common issues and the kinds of supports that might be needed. My Department will have no difficulty in responding to any particular needs that such a network among co-operatives would identify. If that should emerge and such a network could support the establishment of new worker co-operatives through advice and networking, we would certainly be very happy to respond to them and see if there are particular initiatives that either Enterprise Ireland or the local enterprise offices, LEOs, could take in response to such a move. Many LEO supports are available to co-operatives, including feasibility grants, priming grants and business development grants.

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I understand the supports they can access, but it does not answer the question. With Brexit approaching, it is more important than ever that we have a strong indigenous company base, especially considering how multinationals can be vulnerable to the tax base. Does the Minister agree that building that sector could have distinct advantages for the economy?

I also want to raise the issue of allowing workers to buy a company if a succession issue arises. As the Minister will be aware, this has caused many problems over the years with potentially profitable companies closing because of succession problems. When a new owner dies with no succession plan, we are not protecting jobs.

Pat Gallagher (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am anxious to get in another question. I call the Tánaiste.

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

If no plans for expansion of the co-operatives exist, how does the Minister plan to protect jobs if such succession situations arise?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I did not get the last part of the Deputy's question.

Maurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

If the Minister has no plans for the set-up of a co-operative unit in the Department, how does she intend to protect jobs if such succession situations arise in such small companies?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There are a range of initiatives to support job creation. If the co-operative firms, as with any other firms, are in need of particular support, particularly in the Brexit context, those supports are available to co-operatives in the same way that they are available to enterprises. It a question of ensuring that they realise that supports are available to them, as they are to other enterprises, and that they access them. If they do the kind of networking the Deputy suggests and if particular issues arise, I am very happy for the Deputy or the co-operative movement to communicate with my Department and for us to respond to the particular issues they identify as being essential to help them cope with any current threats.

Pat Gallagher (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

We will have a final question from Deputy Wallace and I will give him one supplementary question.

Mick Wallace (Wexford, Independent)
Link to this: Individually | In context | Oireachtas source

Why? It started late.