Co-op News September 2019: Agriculture

TIME FOR
SOME CHANGES
The Irish co-op sector has been crying out for reform – but what form will this take, and why is it
taking so long? Paul Gosling investigates
Co-operative legislation in Ireland is set for a major
overhaul, but the slow pace of decision-making is
leaving uncertainty for the sector.
It was back in 2016 that the Co-operative
Legislation Unit at the country’s Department of
Jobs, Enterprise and Innovation initiated a review
of the relevant laws – the Industrial and Provident
Societies Acts that date from the 1890s and which
have since repeatedly updated. These changes
comprise what the department has referred to as
“piecemeal amendments” to “what is a largely
Victorian statutory code”.
The intention is to at the least codify, and
probably substantially re-write, that old legislation.
A spokeswoman for what is now the Department of
Business, Enterprise and Innovation says: “The
department is undertaking a root and branch
review of the Industrial and Provident Societies
Acts 1894-2018. It is intended to bring forward a
General Scheme of a Bill which will consolidate
and modernise the existing legislation by the end
of year.”
“A distinction is also required within the
legislation between different types of co-ops,
that is between larger, more business-oriented
co-operatives and those co-operatives who are
owned and run by a group of people wishing to
serve a social or environmental need”
Ten responses were submitted to the consultation
exercise, but the nature of these varied.
Accountancy body ACCA was concerned that
the disclosure and governance requirements for
industrial and provident societies are less rigorous
than for companies. It also expressed concern that
the register of industrial and provident societies is
not up to date.
In its submission, the Centre for Co-operative
Studies at University College Cork focused on the
co-operative concept – seeking changes to the
name of the law to include the word ‘co-operative’;
creating a separate category for employee-owned/
workers’ co-operatives; and to reduce the required
minimum number of members from seven to three.
Co-operative Housing Ireland similarly sought
a reduction in the required number of members
to three, while co-operative development body
Co-operation Works proposed the minimum
number to be reduced to just two.
The Society for Co-operative Studies Ireland –
whose members include Co-operative Alternatives
of Northern Ireland and the Co-operative Forum
of Northern Ireland – is another that called for the
name of the new legislation to include the word
‘co-operative’ and to provide clearer definitions to
the co-operative identity.
“A distinction is also required within the
legislation between different types of co-operatives,
that is between larger, more business-oriented
co-operatives and those co-operatives who are
owned and run by a group of people wishing to
serve a social or environmental need,” it says.
SCSI also wants small co-ops to be exempted
from the legal requirement for external audit in the
same way as small companies.
ICOS – the Irish Co-operative Organisation
Society – called for stronger rules for governance
in IPSAs, while urging that company law is not
adopted wholesale for co-ops. Its submission
states: “While some elements of company law are
necessarily applicable to a co-operative, to use
a blanket approach would subvert the unique
characteristics and ethos of a co-operative.
SEPTEMBER 2019 | 46