Lisa McDonald (Fianna Fail)

I welcome the Minister of State and thank him for his lengthy speech on this important matter. We are singing from the same hymn sheet. As Senator Regan pointed out, this is a very important Bill which is timely in making changes to the law on arbitration in Ireland. In particular, it makes improvements to the Arbitration Acts of 1954, 1980 and 1988, the last of which introduced the internationally recognised Model Law to be applied in all cases of international commercial arbitration in Ireland. The new Bill also ensures recourse to the courts will be speedy and avoid unnecessary costs. It also removes the possibility of court orders which can impede an arbitral process through orders for security, costs and discovery. It promotes an alternative dispute resolution mechanism and promotes Ireland as a location for same.

One of the most significant features of the new Bill is the extension of the Model Law to domestic arbitrations. This modernises the system and unifies the two arbitration regimes in place. Modernisation is the key element of the Bill, as it incorporates international best practice into Irish law and could help to establish Ireland as an attractive option as a neutral third party country venue for international arbitration.

Arbitration forms part of the services industry which we hope will develop and make a major contribution to GDP. When one considers the downturn in the economy and the current lack of finance, it is clear that arbitration could give rise to huge benefits in the future. Many international arbitration disputes involve multi-million euro amounts. Choosing Ireland as the arbitration venue in resolving these disputes will be a vote of confidence in the quality of our government, business and legal structures. Ireland is a neutral, English-speaking venue with a common law system and an evolving, strong legal framework which is attractive in dispute resolution. If we get the legislation right and Ireland is marketed to companies and other countries, we could make the new system an economic success.

Hosting the arbitration of disputes has many significant economic, legal and business tourism benefits. Nearly 1,000 overseas companies have made Ireland their European base in many sectors such as finance, information technology, pharmaceuticals and other services. We are promoting Ireland as an IP centre of excellence. We have a wide range of translation and stenography services, another advantage.

The courts also support and encourage arbitration. For example, the Commercial Court provides a fast-track system for dealing with commercial litigation cases which potentially can be used in arbitration. As a young apprentice solicitor back in 1997, I did my training with a commercial law firm. There were rooms dedicated to large commercial litigation disputes that were ongoing for five or six years. That no longer happens owing to the development of the Commercial Court which has been a success under Mr. Justice Kelly. The development of a purpose-built centre for arbitration and dispute resolution would further enhance our ability to attract this business. International best practice is to have such centres. To compete with London, Paris and New York, Ireland must invest in similar facilities.

Many Irish people have figured on the international economic and political stage which helps to attract people from overseas to Ireland. It helps to sell a positive and professional image of Irish people. This business would greatly enhance our economic and legal standing. It would also encourage domestic alternative dispute methods which could only be of benefit in repairing fractured business relationships.

Many sectors in the economy are internationally focused and have made inroads into markets abroad. The legal services community has been more domestically focused until now, but perhaps this Bill will mark a new departure. The conference that took place in Dublin in 2008 has been mentioned. It was the biggest international arbitration conference ever and generated significant goodwill towards Ireland. Coupled with the Arbitration Bill 2009 and the various initiatives prompted by the conference, this should allow us to achieve the goal of establishing Ireland as a premier centre for international dispute resolution.

I would like to address some issues relating to small claims. Far too often, small claims clog up the system. The international dispute resolution procedure will deal not with small claims but also with international claims of significance. Section 14 of the Bill deals with consolidating proceedings where parties are willing to so consolidate. That is interesting because our own law does not promote a class action, a phrase we are barely allowed to mention. However, if we can change the law for dispute resolution, surely we can change it to allow class actions in our court system.

Section 30 provides that the Bill shall not apply to an arbitration agreement that relates to a claim which does not exceed the monetary limit for small claims in the District Court, currently €2,000. We should not clog up the system with such small claims.

Section 34 deals with special oversight powers and preserves the power of the arbitrator to state a case for the appropriate court for an award. It allows a party to an arbitration to make an application to that court seeking that an award be remitted to the arbitrator on the grounds that new evidence has emerged which is likely to alter materially the decision on that award, or seeking a direction that the arbitrator state a case for the decision of the court. This is sensible practice.

Arbitration is hard, given the requirement for privacy and confidentiality on the part of the parties involved and the arbitrator. However, it is always a better solution than going to court. The Minister of State referred to section 11 which provides an alternative path to litigation. As he stated, there is evidence to suggest the parties are anxious to avoid excessive court intervention which can only be welcomed. The philosophy of the Model Law is that minimal court intervention will work to the advantage of the process and ensure finality. However, this also supports agreement on certain points and the narrowing of the issues in order that it can promote conciliation which is welcome.

Section 11 also states there is to be finality to the court's determination in respect of a number of applications. These include an application to stay a court action in a matter which is the subject of an arbitration agreement, an application to set aside an arbitral award or an application to recognise and enforce an arbitral award. The Minister of State has stated it is a new departure for our law that all these applications will no longer be subject to appeal to a higher court, thus giving to the arbitrator a court of final appeal. This promotes Ireland at an international level as a location for dispute resolution. This is a good Bill that reflects the need for modernisation and consolidation in our law. It injects practicality to the system. It answers the need of the international commercial community present in Ireland and it is eminently sensible that we introduce it now. I strongly support the passage of the Bill through the House and I note it has been on the books for a number of years. I hope we can enact this Bill as soon as possible so the arbitrators can send out the signal that we are open for business and other areas of Government can promote Dublin, as Senator Regan said - there is no reason why it cannot apply to other cities - where our main legal apparatus is, as a place of international dispute resolution.