Eugene Regan (Fine Gael)

I thank the Minister for outlining this new Arbitration Bill, which is an effort to consolidate existing legislation in this important area of alternative dispute resolution procedures. At the arbitration seminar in October 2008, which the Minister of State referred to, the Attorney General stated the system of appeals from arbitration undermines its raison d'être. That is correct but the Irish courts have, with the enforcement of arbitration awards - the New York convention - been reluctant to intervene. This law is very important but the courts have applied the arbitration legislation which is very much in keeping with international law. What we now have is a codification of existing law and practice by the Irish courts in the arbitration area.

At that conference, the Attorney General stated that legislation in respect of domestic arbitration had served us well and generally functions effectively and relatively efficiently, which is true. He spoke about refinement and that this Bill is essentially a refinement of the process. It repeals the Arbitration Acts 1954 and 1980, as well as the Arbitration (International Commercial) Act 1998, but it preserves all the international obligations under the Geneva Protocol on Arbitration Clauses opened on 24 September 1923; the Geneva Convention on the Execution of Foreign Arbitral Awards of 26 September 1927; and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards done at New York on 10 June 1958.

I know from being involved in international trade that when an agreement is signed, an arbitration clause is standard. It is only when a dispute arises that there is a focus on the exact wording of a clause and in particular the jurisdiction in which the arbitration is to take place. There is familiarity with the Geneva, London and Paris venues for arbitration and the Minister of State has pointed out that these are the key players as centres of arbitration. There is no reason Dublin cannot be a major centre. By implementing and integrating into our arbitration law the UNCITRAL Model Law on international commercial arbitration, this brings Irish legislation into line with international law and the understanding of operators in the international market with best practice.

The integration of domestic commercial arbitration with international arbitration is very important. The end result is that the arbitration dispute system will become familiar and seamless, whether there is somebody operating in the Irish Financial Services Centre or in a multinational company. There can be a foreign or domestic element in the dispute but having the UNCITRAL model incorporated into our legislation would facilitate the procedures.

There are a few implications of adopting the Bill and Model Law. The courts have essentially created an environment where there is very little interference by them in the arbitration process and where the parties to an agreement or contract decide that it should go to arbitration. The model code provides that the environment for arbitration is more of a sealed nature and it is less amenable to interference by the courts. There are also many new procedural powers given to arbitrators with regard to interim reliefs and the want of prosecution to appoint experts to assist the tribunals and to issue consent awards. All of that is very welcome.

The other new element is the giving of reasons, as with many arbitrations in Ireland it has been the practice not to issue reasoned awards in domestic cases. That is to avoid providing reasons that could render the award more amenable to challenge in the courts. The Bill provides for the giving of reasons in line with the UNCITRAL model, which is to be welcomed.

There is another element concerning the erring of law on the face of the award. That was not included in existing statutory procedure but the courts here, including the Supreme Court, have recognised this as valid ground for challenging an award, particularly at common law. Providing a statutory basis for that brings clarity to the procedure.

Enactment of this Bill should be welcomed. We have many well-qualified arbitrators in Dublin and the country who are familiar with the UNCITRAL Model Law. By laying it out in statute, the entire system will be streamlined and the legislation will be modernised and codified. This assists in making Ireland a venue for international dispute resolutions in the area.

What procedures are in place and what efforts will be made by the Government to promote Dublin actively as an arbitration centre in competition with Paris, Geneva and London? The Commercial Court under Mr. Justice Kelly has been a success owing to the speed at which decisions can be taken. Very technical, complicated and serious commercial disputes can be resolved using a fast-track procedure. The standards applied in the court are recognised, as is the fact that we we can deal with commercial disputes efficiently. In offering an alternative mechanism for resolving commercial disputes Dublin can be a serious contender in attracting much of the arbitration business. The key point in the Bill concerns the distinction between domestic and international arbitration which will help greatly in promoting arbitration in resolving commercial disputes, especially in the international arena.

I welcome the Bill. I do not have any difficulties with it. There may be one or two minor issues which may arise on Committee Stage, but the Bill is very welcome. Its importance should be promoted in order that Dublin can become a contender in attracting a much greater volume of arbitration dispute resolution business. I hope the Minister of State can respond to this point.