Maria Byrne (Fine Gael)
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I welcome the Minister of State, Deputy Richmond. He is no stranger to this Chamber.

Patricia Stephenson (Social Democrats)
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I welcome the Minister of State. I think this is the second time he has come in for a Commencement matter for me and I really appreciate his continued engagement on international development. I have asked him to come to the Chamber today to address the deeply concerning developments regarding the EU corporate sustainability due diligence directive, which I will refer to as CSDDD. It is a law that Ireland has rightly supported, and represents a hard-fought victory for corporate accountability, human rights and climate justice. The directive is not abstract or bureaucratic legislation. It is a direct response to very preventable human tragedies like the collapse of the Rana Plaza on 24 April 2013, when over 1,130 garment workers were crushed to death in Dhaka in Bangladesh while sewing clothes for European brands like Zara, Benetton and Penneys. Completely structurally unsound and built without proper permits, the building fell on itself the day after visible cracks were ignored by factory owners. Those lives were lost because profit was prioritised over safety and because there were no legal obligations on companies to prevent or respond to such corporate abuses in their supply chains.

The CSDDD legislation was designed precisely to prevent this kind of harm, by making due diligence mandatory, enforceable and accountable across the EU. It is the product of decades of advocacy and built on key voluntary frameworks including the UN guiding principles on business and human rights and the OECD guidelines for multinational enterprises. After two years of intense negotiations, the directive was finally passed and entered into force in July 2024 with member states including Ireland being required to transpose it into national law by July 2026. Just months after this important victory, however, the European Commission has tabled its Omnibus 1 proposal under the banner of cutting red tape. This is a dangerous misrepresentation. The omnibus proposal actually goes much further, threatening to dismantle the vital protections and safeguards for basic rights of workers and vulnerable communities, both in Ireland and around the world. Far from being a technical simplification, the proposed changes would undermine the very core of the corporate sustainability due diligence directive. They do so by diluting the due diligence duty and weakening the legal obligations on companies to prevent and address human rights and environmental abuses; removing the EU-wide civil liability regime, thereby stripping victims of a clear and enforceable route to justice; eliminating the requirement for companies to implement climate transition plans; and limiting stakeholder engagement, silencing effective communities and workers. This process has been completely rushed without proper consultation or impact assessments. It is in direct contradiction of the EU Commission's better regulations principles, which are supposed to guarantee transparency, evidence-based policymaking and public input.

I acknowledge the statement made by the former Minster of State with responsibility for this directive, the Minister, Deputy Calleary, shortly before it officially entered into force. He affirmed that Ireland had consistently supported the objectives of the CSDDD and called for ambition in the protections it would provide. His remarks clearly reflect a commitment by the Government to ensuring this legislation would be both meaningful and enforceable, yet today the commitment is lacking. Despite the Government's stated position that it supports the simplification agenda only insofar as it does not undermine human rights and environmental protections, Ireland has remained worryingly silent during ongoing Council negotiations on the omnibus proposal I acknowledge that some of those negotiations are probably confidential. I am sure that will be one of the Minister of State's responses. We have failed to join like-minded member states in actively defending the core provisions in the directive, provisions that now pose a real risk of weakening or removing some of those protections altogether. The silence does matter. The omnibus proposals do not represent minor adjustments. They are an unravelling of these hard-won protections. It would be a profound setback not just for corporate accountability but for the EU's credibility when it comes to upholding human rights and environmental rights.

Will Ireland be publicly defending the core provisions of the CSDDD, acknowledging the limitations the Minister of State may have when it comes to the specifics of the negotiations? What is Ireland's position on the four key areas under threat, namely, the due diligence duty, the EU-wide civil liability regime, the implementation of climate transition plans and the stakeholder engagement component? Will Ireland be taking a clear and vocal stance at the upcoming meetings at Council level in Brussels? I believe the Minister of State may have been at a meeting on this yesterday. Will Ireland be pushing back against the different roll-backs of the provisions that are fundamental for the human rights and environmental protections?

Neale Richmond (Dublin Rathdown, Fine Gael)
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I thank the Senator raising this important matter and for her ongoing advocacy and engagement, in a very constructive manner, on a key issue of importance not just to Ireland and Europe but to the wider world.It is extremely important.

The increased focus on burden reduction, or simplification, at EU level is inherently linked to efforts to enhance European and Irish competitiveness in the evolving global trading environment. The Letta and Draghi reports published last year were clear that we must become more innovative, more productive and more competitive. The importance of reform is being pushed strongly by the European Council which last October called for a “simplification revolution” by ensuring a clear, simple and smart regulatory framework for businesses and reducing administrative, regulatory and reporting burdens, in particular for SMEs. Under this mandate, the Commission has proposed a series of omnibus packages on the simplification of various pieces of legislation. To date five of these packages have been published. These include the omnibus package on sustainability; the omnibus II package on investment simplification; the omnibus III package on Common Agriculture Policy reform; the omnibus IV package on the extension of certain mitigating measures available for SMEs to small mid-cap enterprises; and the omnibus V package facilitating investment in defence capabilities. I have 2 minutes and 45 seconds to address the particular points raised by Senator Stephenson. Together with all member states, Ireland is examining the omnibus proposals in detail. I want to be clear that as a matter of principle, we do not endorse a regression of existing standards. Simplification cannot be a race to the bottom. It has to be about better regulation not deregulation.

With regard the proposed changes to the CSDDD, it is important that we do not lose sight of the objectives of the directive, which aims to promote responsible business conduct. The Minister for Enterprise, Tourism and Employment, Deputy Burke, has been very clear that he is supportive in principle of initiatives to simplify reporting requirements and reduce costs on companies, most especially SMEs. The Department of Enterprise, Tourism and Employment is continuing to assess the implications for business, including SMEs, as the discussions on the omnibus proposal progress at EU level.

Bearing in mind the mandate from the European Council, and taking into account the current environment, we acknowledge the efforts of the Commission in implementing real change for business. I have no hesitation to make it clear that Ireland is keen to play its part not only in shaping the policy around simplification and competitiveness but also in doing so in a holistic manner. We want a more competitive Ireland and a more competitive Europe - we need that - but if we do not base that competition on standards, values and ethos that matter to how we do business, it is a race to the bottom that we are so keen to avoid.

The Senator mentioned meetings that have taken place in recent weeks. Most of these have been done at official level rather than ministerial level so I have not even been in the room. However, I am aware of the discussions to an extent. Ireland has been consistent in its proposal that we support like-minded countries who want to ensure the hard-fought gains of the last few years are not lost. I give the Senator a commitment on the public record that we will absolutely support that the efforts of the CSDDD on the four key areas she addressed are kept in focus and that we do our part to ensure they are maintained. We are not in the business of backing off from what we have achieved. This Government has been in office for quite some time. We have been involved in the discussion. We have not achieved everything that we want but we will not undermine or lose sight of what has been achieved simply because we are in a slightly difficult situation. I am happy to go into more detail but I think I have addressed the key issues the Senator raised and hopefully given her the reassurance the House requires.

Patricia Stephenson (Social Democrats)
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I am grateful to the Minister of State for his commitment to those four areas and putting it on the record. I recognise what he says about simplification not being a race to the bottom and it is not about deregulation.

We met Department of Enterprise, Tourism and Employment officials yesterday at the enterprise committee and had a good engagement with them there. I was concerned with their emphasis on the due diligence approach not being watered down. I disagree with that entirely in terms of the omnibus proposals. I feel that the risk-based approach in the CSDDD provided more simplification for the supply chain. The new proposal is an omnibus, focusing only on tier 1, which means that human rights and environmental abuses will not be identified. That is concerning.

The Department officials also emphasised that plausible information is the new tool under the due diligence procedure. However, plausible information is not actually a legal concept under EU law. It places an undue burden on NGOs and civil society stakeholders, which we directly fund through the Department’s work in Irish Aid and through human rights work that we fund. It is a particular concern for me that we are hearing something from the Department of enterprise that I do not think is in line with our human rights obligations around the due diligence duty we have.

Neale Richmond (Dublin Rathdown, Fine Gael)
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It is clear that this is a moment of change in the EU. It is clear that the need for Europe to become more competitive is existential. However, in just over 12 months Ireland will take over the Presidency of the Council of the European Union and our role in the simplification of the competitiveness agenda will be pivotal. Our role is not only to deliver on that agenda but also, as the Senator rightly says, to make sure that agenda is delivered in a manner that still maintains the hard-fought gains. As we work with the EU and other institutions and member states across Europe we seek not a diminution of ambitions but rather a rationalisation of the current framework. Our goal is a system that is streamlined and efficient yet still underpinned with strong values and a commitment to good practice. We will not lose sight of this. The very clear practical concerns the Senator has raised will be taken on board by officials in my Department and by those working in partnership at team Ireland collectively. What we do from an Irish Government point of view will absolutely be best in standard. I think Irish Aid has demonstrated that. Our ambitions in various countries will be maintained. We will be at the forefront in the European family to make sure that what has been gained will not be lost.