Tommy Broughan (Dublin Bay North, Independent)
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33. To ask the Minister for Jobs, Enterprise and Innovation the measures she is taking to promote co-operatives here; if there are specialist supports for co-operatives; and if she will make a statement on the matter. [6084/18]

Tommy Broughan (Dublin Bay North, Independent)
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As the Minister knows, almost 20% of the world's population are members of co-operatives of one kind or another in an economic sphere with perhaps 300 million workers. We have our own tradition with the Irish Co-operative Organisation Society and the credit union movement in particular. I recently asked a series of questions about the kind of supports we give co-operatives and whether the 31 local enterprise offices, Enterprise Ireland and other organisations could do more to promote the co-operative ideal and encourage more startups.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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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.

Tommy Broughan (Dublin Bay North, Independent)
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The Minister mentioned a general policy with regard to non-promotion. Given the changes happening with international tax policy at European level and so on, is it something that the Minister should perhaps look at? I know she has had distinguished service in the sector in the past. Should we look at it to promote it actively? For example, I know when the Minister answered a question about the 31 LEOs some time ago, there was not specific information about, for example, how many co-operatives were helped over the last four or five years and particularly in 2017. Similarly, with Enterprise Ireland, in regional development and rural areas with high unemployment, how many co-operatives were assisted? If policy changed, would the Minister consider having a co-operative unit within the Department, within Enterprise Ireland or within the LEOs to promote it actively? What steps could the Government take to assist the credit union movement with developments in finance?

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I am a huge advocate for the co-operative movement, as the Deputy knows. I worked in the credit union movement, which is one of the greatest co-operative movements across the country. Responsibility for that lies with the Department of Finance. I am responsible for the legislation but we support co-operative movements as businesses through LEOs and through Enterprise Ireland. Supports do exist. I will get the Deputy the information about how many co-operatives have received help. If he wants to come to talk to us about this, I would be happy to sit down and have a conversation with him about the co-operative sector. I believe they do wonderful work in this country when supported. They take up the slack when other businesses might not want to. They provide a good service. There is a voluntary board and while people working in it get their wages, it is not for profit. I think it is a great principle but my role as Minister for Business, Enterprise and Innovation relates to legislation.

Tommy Broughan (Dublin Bay North, Independent)
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Does the Minister think there should be other changes to facilitate the development of co-operatives? For example, I think the minimum number of members required is seven. Could that be reduced? Could there be a lower number for a group of people who want to start in a co-operative way? Are there changes we could make, while I know this goes into other territory relating to the Finance Act, to the Companies Acts, for example, to facilitate the development of co-operatives? I think many people were shocked at a report published in The Irish Independentrecently about the credit union movement and warnings about what could happen to it. As the Minister knows better than anyone, the credit union movement has consolidated immensely over recent years. Many unions have joined together and so on. There seems to be a necessity for the Government to give the credit union movement additional powers, particularly relating to housing finance, to become a key actor in the housing area. It could also give additional powers to support small and medium enterprises, given that there are 12,000 to 15,000 volunteers and workers in the credit union movement, the members of which have immense assets of between €12 billion and €14 billion which could be used in the housing industry, for example.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The credit unions, which I am very familiar with, are regulated by the Central Bank. That proposal can go to the Minister for Finance. 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. That is the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Act 2014, which came into effect. The legislation needs to be tidied up since there are many different Acts. My Department held a public consultation on the proposed legislative reform between 1 November 2016 and 31 January 2017. Replies received on foot of that consultation are currently being considered. It is anticipated that the legislative review will result in the modernisation of areas including corporate governance, shares, membership and other regulatory matters. That is currently being examined and we will hopefully bring legislation forward at some stage in the future. I am happy to engage with the Deputy on that.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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I remind Deputies before we move on to Other Questions that the time slots are 30 seconds to introduce, two minutes for the Minister to reply, one minute for a supplementary from the Deputy, a reply from the Minister, and a final chance for a supplementary. I will be very strict on those times because I have allowed them to go way over the time for Other Questions. To accommodate as many Deputies as possible, I will stick strictly to times, so when the Minister comes to the end of her time, I will say that the rest of the reply is in the Official Report, and I will ask Deputies to give way when their one minute is up.