Dara Calleary (Mayo, Fianna Fail)
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The Co-operative Societies Bill is being drafted being mindful of the diverse nature of the co-operative sector. The Bill aims to provide as much flexibility as possible, thereby empowering individual co-operative societies to make appropriate provision in their rules to reflect the nature of their operations and their own particular ethos. Accordingly, the provisions are broadly applicable and it is not intended to include definitions or provisions specific to any particular types of co-operatives. This non-prescriptive approach is intended to facilitate the wide variety of co-operatives in Ireland in terms of scale, types of activity, commercial or not-for-profit focus etc. and seeks to ensure that the legislation facilitates this diversity and does not unduly restrain how co-operatives choose to operate.

The concept of a co-operative and the requirement to adhere to the co-operative principles are being given a legislative basis for the first time. It will be easier to set up and operate a co-operative, with a reduction in the required number of founding members; provision for virtual meetings; the availability of audit exemption for small co-operatives etc. These all help to make co-operatives a more attractive corporate structure, for any type of co-operative including those who wish to reflect a worker-owned or social enterprise model.

My Department is not aware of any distinctive difficulties or challenges in relation to succession planning that would require specific provisions in the proposed co-operative legislation. I have been informed that the issue of succession planning has not arisen in any of the extensive public consultations or bilateral engagements undertaken by my Department in the context of preparing the general scheme. Succession planning can be a challenge whether for family-owned businesses or for those with a broader ownership base and may arise irrespective of the corporate form of the business. As addressed previously, a modern legislative basis will provide an attractive option for those who are committed to the co-operative model. This applies in relation to business start-ups and situations regarding transition of existing businesses.

Issues raised during pre-legislative scrutiny and bilaterally by stakeholders have been given careful consideration and have helped to inform the ongoing drafting of the Bill. My Department continues to work closely with the Office of the Parliamentary Counsel in relation to the drafting. Due to the length of the Bill and its complex nature, it is not envisaged that drafting will be finalised and the Bill brought to Government for publication until end of Quarter 2 of this year. There has been strong support for modernising the legislation governing the co-operative model and my Department has continued to engage with relevant stakeholders to develop the Bill. Once the Bill is published, I look forward to the support of Members of both Houses with a view to facilitating early enactment.