Jimmy Deenihan (Kerry North-West Limerick, Fine Gael) | Oireachtas source

I thank the Senators who contributed to the debate, namely, Senators O'Donovan, Conway, Higgins, Cullinane and Colm Burke, and for their useful observations. This is a somewhat technical Bill but I appreciate the welcoming and open atmosphere in which our discussion took place, which reflects the fact it is not controversial legislation. Notwithstanding its technical nature, the Bill will play a part in supporting and promoting Ireland as a successful trading nation. The development and maintenance of trade relations are important at any time but they are particularly important to Ireland and the European Union at a time as we emerge from past economic difficulties. By reflecting a whole of government approach, the Bill demonstrates how various Departments can contribute to the promotion of exports.

Senators will appreciate that Ireland is a trading nation. As I noted in my opening statement, legal certainty and predictability can contribute to the progressive elimination of barriers to trade and enable business and commercial relationships to flourish both within the EU and externally. Commercial bodies need to be certain that they can readily enforce contracts and judgments on what in some cases can be significant amounts. In a small way, this Bill and the convention it implements can protect and promote Irish business interests abroad by establishing a framework for upholding choice of court agreements in cases which end up before the courts of countries bound by the convention. The guarantees offered by this framework will allow parties to trade with greater confidence than heretofore.

While the legislation is mandated by our membership of the European Union, it is in our interest to legislate in a progressive fashion in this area. The convention fills a void in the current international legal framework, as virtual no treaty relationship exists in this area between individual member states and the EU's main trading partners. In this context, an impact assessment prepared by the Commission suggests that uncertainty regarding the appropriate court to resolve a dispute was a factor taken into account in making significant business decisions and was potentially a barrier to trade. The assessment also noted that the majority of commercial contracts contained provisions dealing with dispute resolutions and a significant percentage included an exclusive choice of court clause. The Bill is largely an exercise in the promotion of legal certainty. There will be an opportunity to explore these matters further on Committee Stage.

Senator O'Donovan referred to section 4. The reference to the explanatory report is not without precedent. A similar reference was contained in legislation relating to the Lugano Convention and the Brussels I Convention. Our Judiciary is comfortable with such references but judges are not required to consider the reports. Senator Conway raised a number of issues, including the possibility of promoting Ireland as a legal hub. Legislation is being developed to promote us as a venue for alternative dispute resolution and further opportunities may arise for more traditional court-based litigation. Given their legal backgrounds, Senators Higgins and O'Donovan will agree there are significant opportunities in this area. Perhaps we have not promoted ourselves sufficiently as a country in regard to dispute resolution.

The convent complements the existing arbitration regime. Many larger companies would prefer to resolve their disputes through arbitration but SMEs may prefer a resolution in open court. In the absence of the conventions, companies have freedom of choice on the way in which they resolve their disputes, but the convention grants a degree of certainty regarding the ability of parties to ensure their choices are honoured.

Senator Burke referred to decisions of the Master of the High Court. Decisions of the Master can be appealed to the High Court under the Courts and Court Officers Act 1995.