Alice-Mary Higgins (Independent) | Oireachtas source

I support Senator Nash's amendment. We have spoken and heard about unforeseen consequences, but it behoves the House to consider foreseen consequences also. As the legislation currently stands, we are leaving ourselves exposed and open. We need to ensure that we do not speak of the situation that happened in respect of Clerys and others as an anomaly because it was a response to and a reflection of the current structuring of the laws and the lack of adequate protection in place.

We have the evidence that the situation as it stands is not a good or acceptable base position. When further information comes through and we have the report, we may wish to amend the legislation again. However, I have no doubt that Senator Nash's proposal in the amendment, if accepted at this stage, would lead to a better starting position from which we could then move. In terms of political realism, it is unlikely that there will be another Bill to amend the Companies Act within the next five to six months or year, although it is appropriate that we would have a clear indication of timing. However, while we may get an indication of when the findings and recommendations will come through, we do not want to leave open a period of time in which there is still permission to act in a way that is unconscionable.

There is a real concern because we have seen this happen systematically. It is a very real thing. What is the role of a director of a company? Are directors of companies there to ensure the companies' success or are people being put into positions in companies to facilitate their dissolution and destruction. If we are serious about our recovery and are concerned about vulture funds, for example, but do not accept the amendment at this point, we cannot wring our hands and express great surprise and concern if international companies that work to maximise their profits and returns on a quarterly basis with, in many cases, little concern for productivity, are rewarded if they take advantage. That is what will happen. In the Companies (Accounting) Bill 2016, we have an opportunity to identify and address a problem. Can we improve it in the future? Absolutely. However, this will be an immediate improvement.

If the amendment is unsuccessful, I reserve the right to table an amendment that is worded slightly differently to address the issue in a slightly different way. I reserve that right for Report Stage.

This is a sensible proposal. It shows that we are serious and that the Legislature will not lope behind business practices, commenting on the trail of destruction that they leave. It also rewards good business practice and recognises the majority of good business practices, including those of companies that have been taken over. It gives them a fair chance of recovering and moving to effective trading practices with decent conditions for their workers. I strongly support the amendment and ask the Minister to support it or suggest her own amendment on Report Stage. Either would address the issue.