Seanad debates

Wednesday, 12 April 2017

Companies (Accounting) Bill 2016: Committee Stage

 

10:30 am

Photo of Gerald NashGerald Nash (Labour) | Oireachtas source

I am disappointed that the Minister will not take on board the valid arguments that support this particular initiative to strengthen section 599. We have waited well over a year for the report of the Company Law Review Group. As I said in my earlier contribution, we do not know the minute or the hour when another Clerys-type scenario will emerge in this country. If we do not tighten up our laws, and the last Administration attempted to do so, then when something like Clerys happens again it will be on all of our heads in this Chamber. I have worked extremely closely with those who lost their jobs in desperate circumstances in Clerys in the summer of 2015. They must be given enormous credit for the way in which they have conducted their campaign. Their campaign was not about payments and support for the Clerys workers because they knew that their ship had sailed. They wanted to ensure that the law was amended and strengthened to prevent such an event from happening again. I am not certain that we are closer to reforming the law in favour of working people in this country and those who go about their business and enterprises in a responsible fashion.I do not think the country wants to have the kind of label around its neck which certain elements of our business community got because of the way the Clerys situation was dealt with. The strengthening of section 599 and our efforts to make it more robust and meaningful would garner support from responsible business people who want to see a strong business culture in the country. I am not saying there is not a strong business culture in the country. However, where there are weaknesses in our law that permit something like this to happen, they need to be addressed.

As I stated, we have been waiting for a considerable period of time for the CLRG report. We have waited too long. If the Minister will not accept the amendment, which I am prepared to put to a vote, will she confirm when we will get the CLRG report? What will be the timeline involved in terms of taking and accepting the report and legislating for any changes the group might propose? Further, when will she legislate for the provisions of the Duffy-Cahill report? A twin-track approach was taken by the previous Administration to try to address these issues. One related to changes in employment law that were required to protect the interests of employees caught up in insolvencies such as that at Clerys. The second focused on the need to review company law and propose changes to strengthen it in these situations. I would like to see that happen.

The particular matter I will now refer to is before the courts. I welcome the fact that this week there has been some formal State action on matters relating to the Clerys redundancies on foot of an investigation that I helped to trigger. I will keep my comments on it to a minimum as the matter is before the courts. However, it is high time for concrete action from Government to at least minimise the prospect of a Clerys-type insolvency happening again. Small businesses are caught up in them and considered to be simply collateral damage in a corporate and property power play, workers are left on the hook and the taxpayers of the country are left to pay only statutory redundancy to employees who, in some cases, have decades of experience and contribution to the company.

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