Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

I thank the Minister for his attendance this afternoon to provide an overview of the legislation, namely, the Friendly Societies and Industrial and Provident Societies (Miscellaneous Provisions) Bill 2013.

I very much welcome the legislation, as do my colleagues in Fianna Fáil, and we will be supporting it. It streamlines existing legislation, reduces bureaucracy and amends regulatory obligations. Friendly societies and co-operatives have played an important role in Irish society in general down through the years. Friendly societies were developed initially as part of the mutual self-help movement of the 19th century, which included co-operatives, building societies, savings banks, credit unions and trade unions and those societies are registered generally under the legislation to which the Minister of State referred, namely, the Friendly Society Acts 1896 to 1997. The various objectives of those societies that were registered include permitting the carrying out of financial activities, including the provision of financial benefits in regard to illness, old age or death and savings and loan activities. However, over the years with the State's increased intervention in supporting the common good through the introduction of State-sponsored social welfare payments, coupled with the growth and development of the insurance business as an industry sector, we saw the social purposes of the friendly societies begin to decline. I understand currently only 35 of those societies are active and that only three new societies were registered in the past nine years.

On the other hand, the co-operative movement has played a huge role in Irish society in terms of our economic, social and cultural development over the years. A co-operative body is an organisation which operates on the basis of one member, one vote, on a co-operative principle. While the term "co-operative" does not have a legal standing most of the co-operative movements in Ireland are covered in law under the Industrial and Provident Societies Acts 1893 to 1978. Co-operatives have played a huge role in our economic and social development, particularly in the agrifood sector over the years. In addition to that, they have played a major role in providing housing, rural services and community development. A Forfás report on Ireland's co-operative sector, published in 2007, indicated that most of the €12 billion annual turnover attributed to co-operatives is accounted for by the agrifood sector. There are household names, recognised not only in Ireland but worldwide, who have played an active role in the development of the agrifood sector in Ireland.

This legislation is a welcome streamlining of existing legislation. It will be supported by Fianna Fáil on this side of the House. It aims to address concerns brought forward by the sectors. For example, the existing law on examinership only applies to companies and this is being extended to industrial and provident societies. That is to be welcomed and is an extension those organisations, societies and co-operatives were seeking. There is also additional flexibility provided in the Bill, which the Minister of State has mentioned, whereby provision is made to remove the upper limit on the interest in a society which an individual member may hold, which is currently €150,000, or 1% of the total assets of the society. This will allow societies to amend their rules to set a higher limit or no limit, whichever the societies wish to do, and that is welcome. The Bill also provides that the Minister's role in terms of the approval of a cancellation of an industrial and provident society is being removed and that role will now rest exclusively with the Registrar of Friendly Societies, bringing it more into line with company legislation.

All in all, the legislation is welcome. It will reduce the bureaucracy and streamline existing legislation. We very much welcome it and look forward to supporting it as it passes through this House.