Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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108. To ask the Minister for Enterprise, Trade and Employment the initiatives he is taking to strengthen and enhance the co-operative sector; and if he will make a statement on the matter. [22032/23]

Dara Calleary (Mayo, Fianna Fail)
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On 9 November 2022, the Government approved the drafting of the Co-operative Societies Bill 2022. This represents the most far-reaching reform of the legislation regarding co-operative societies in almost 130 years. The general scheme which has been prepared provides for a specific legislative framework for co-operative societies for the first time, with societies registering under the legislation being required to adhere to the co-operative ethos. It consolidates and modernises existing provisions and introduces modern corporate governance, financial reporting and compliance requirements, thereby making co-operatives more attractive to investors.

Experience internationally suggests that the potential of co-operatives in Ireland has not been fully exploited and that there is scope for the co-operative model to play a greater role across a wider range of activities. The general scheme introduces a modern legal framework which will place the co-operative model on a more favourable and clear legal basis. It will create a level playing field with the situation applying to companies and encourage the consideration of the co-operative model as an attractive formation option for entrepreneurs and also for social and community activities. A modern legislative basis, including strong corporate governance requirements, will also provide confidence to stakeholders and help to encourage investment in co-operatives.

The legislation will introduce provisions to make it easier to set-up and operate a co-operative society – by reducing the minimum number of founding members (from seven to three); expanding the categories of founding members to include bodies corporate; providing for audit exemptions for smaller co-operatives; and providing for virtual and hybrid participation at general meetings. The legislation will also repeal the existing outdated provisions on raising funds which will make it easier to access various sources of finance.

In recognition of the significant diversity across the co-operative sector, the legislation seeks to provide as much flexibility as possible, thereby empowering co-operative societies to reflect in their rules what best suits their own particular circumstances.

I have recently received the report on the pre-legislative scrutiny of the general scheme by the Joint Committee on Enterprise, Trade and Employment. I am currently considering this report and the views received directly from stakeholders on the general scheme. Drafting of the Bill is underway by the Office of Parliamentary Counsel. However, I do not expect the drafting to be completed before late 2023 given the size and complexity of the proposed legislation.