Dan Boyle (Green Party)

This welcome legislation is a reaction to the sad events that have occurred in Irish business, banking and commercial life in the last year. As a direct response to the types of abuses we have seen it is, by definition, narrow in focus. I accept Senator O'Toole's argument that there are broader areas to examine. There will be an opportunity to examine some of them in the course of the further consideration of the Bill in this and the other House. There is also the opportunity of the wider review of company law legislation that the Government proposes to undertake in the coming years. In the current climate, we must take every opportunity to ensure the standards that have applied in the past can no longer apply. In this regard, I agree that other actions are required to be taken.

Nevertheless, much of what is proposed in this legislation is eminently acceptable. The increase in powers for the Office of the Director of Corporate Enforcement is particularly welcome. The ability of that office to take a more proactive approach will help to pre-empt the types of scandals we have had to endure in the last 18 months. Its enhanced function in regard to disclosure and public information will help to avoid such activity as the moving around of company and banking assets to the betterment of individuals that has been far too long hidden from public view. The threat of disclosure must be greater so we can avoid these practices of the past.

I also welcome the provisions in regard to the disclosure of director loans within companies and financial institutions. I would go further, either in this Bill or in future legislation, by allowing questions to be asked about the nature of director loans themselves. We must be far more prescriptive about the fact that they exist in the first place and we must list the circumstances in which they can be used. The most obviously scandalous use we have witnessed was for the bolstering of the share prices of the companies and institutions concerned. I suspect that, far too often, the practice of director loans has been for the self-enrichment of the individuals concerned rather than for reasons of business advancement and the good of the company.

When loans are available and availed of to such an extent, there is an issue of morality that must be addressed. There is an attempt to do so in this Bill. I hope it will be successful but I expect we will have to go further in the future. For instance, in regard to the access to and involvement of others in the business of the taking of and granting of director loans, there is reference to the spouses of the company directors involved but no mention of siblings, children or other relatives. In the close society in which we live - I refrain from using the word "incestuous" because it has been mentioned so often in reference to the political and business scandals we have witnessed in recent years - we must tighten every possible legislative loophole. This Bill is a response to the abuses of which we are aware. The role of any legislation, and our role as legislators in this House, is to pre-empt any difficulties that may occur in the future. Unfortunately, our attitude to some in business, commercial and financial life is that if an abuse can be taken, it will be taken. Future legislation in this area should be used to ensure we tighten every possible loophole.

The other provisions in this Bill are technical in nature, including some changes to how the Office of the Director of Corporate Enforcement can do its job. Our objective in introducing legislation of this nature is to make tangible changes in the culture of corporate life in this State. We must be as open and honest as possible in these debates so we can put as much distance as possible between the political system and those practices in corporate life which, if they ever were acceptable, can never again be so deemed. On those grounds, I welcome the legislation and look forward to the debate that will take place on amendments and so on. I am confident the thrust of this Bill and of future initiatives in regard to companies legislation sets us in the right direction in terms of making the necessary changes. I look forward to closing as many as possible of the existing loopholes via the proposed consolidated companies Act.