David Cullinane (Sinn Fein) | Oireachtas source

I welcome the Minister of State, Deputy Kathleen Lynch, to the House. I support the Bill. Company Bills are a bit like buses. One can wait for hours and no bus comes and then two come at the same time. The more substantial companies Bill, which I also support, is working its way through Committee Stage currently. I must refer to the different approach being taken by the Government to its programme for Government commitments. I accept that this area is not the portfolio of the Minister of State, Deputy Kathleen Lynch, who is deputising for the Minister for Jobs, Enterprise and Innovation. However, I wish to make the point that items of legislation to protect workers that are in the programme for Government have not yet been presented to this House - most notably, the reforms in workplace relations. Changes to joint labour committees, JLCs, saw the end of the Sunday premium for low-paid workers. Lots of other issues affecting workers arise on which the Government must legislate, including the need for collective bargaining and trade union recognition. I support the Bill, which deals with an important issue, but I appeal to the Government to consider the introduction of legislation that deals with workers’ rights also, especially in the context of the anniversary year of the 1913 Lock-out.

In business as in life we must learn from our mistakes and failures. Not all businesses succeed and many need support at some stage during their establishment and development. That is why we need legal provision for examinership, which is preferable to closure. I welcome the measure in the Bill to make examinership a viable option for SMEs. It is something that will be beneficial to them in the future. While the legislation will ease the process and might reduce some of the legal costs, there are still significant accountant and professional fees associated with the process. I urge the Minister of State to outline the steps the Government will take to address them because they are also important and have an impact on businesses.

There has been increased use of examinership by large retailers as a way to address the upward-only rent scandal and force a write-down. It is a risky strategy because it can result in forced closure and job losses. I would caution the big retail companies against using examinership in that way. It would have been better for the Government to make good on its pre-election and programme for Government commitments and bring an end to such clauses, which are resulting in the closure of businesses and costing jobs. Could the Minister of State provide an assessment of the impact of the new rules on pay and conditions for workers? Will a rush to examinership, for example, force a reduction in the terms and conditions of workers?

The Bill also provides for electronic filing of returns to the Companies Registration Office. That is a common-sense approach that brings practice up to modern standards, and it is something we support. Section 5 deals with disclosure to the Director of Corporate Enforcement of information that might relate to an offence by a company director. Again, that is to be welcomed as it provides additional clarity and promotes compliance and transparency for business, which one must admit was sadly lacking in some companies during the height of the Celtic tiger years. Will the Minister of State consider, in addition, requiring company directors to make a full disclosure to ensure companies are fully compliant with tax provisions and obligations but also with environmental obligations and labour laws, particularly the latter? Many companies apply for grants from the State and I am a firm believer that any company in receipt of such a grant should be fully compliant with labour law and employment law. It would be a help if compliance had to be proven.

Section 7 relates to the auditing of companies registered in non-EU countries. Could the Minister elaborate on the issue? Will it address the full auditing and reporting of the infamous Irish-registered but non-resident companies, which has been a source of contention in recent times? I am disappointed that other legislative measures on workers' rights that are under the remit of the Minister seem to be stuck in the legislative process or have not been developed. I ask the Minister of State to pass on my concerns to the Minister so that he can progress such legislation. I support the Bill.