Revenue raises concerns over scope of Mediation Bill

Bill could undermine effectiveness of tax collection and enforcement, Revenue claims

Revenue has raised concerns over the scope of a new Mediation Bill, insisting it could have implications for its functions.

Tánaiste Frances Fitzgerald sought Government approval to publish the text of the legislation, which would aim to reduce pressure on the courts and legal costs for parties.

The Bill would oblige solicitors and barristers to offer mediation to their clients before court proceedings begin.

In addition, when court proceedings are launched, it would also oblige the parties to confirm to the court they have been advised about the mediation option and have considered it.

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Ms Fitzgerald has also proposed the establishment of a mediation council which would oversee the implementation of the new legislation.

The council would promote public awareness of mediation, prepare codes of practice and establish a register of mediators. It would compromise 11 members, a majority of whom, including the chairperson, would represent the public interest.

Key powers

Revenue has stressed the application of the Bill would impact on a number of key powers, functions and operations. The body states it could undermine the effectiveness of its collection, enforcement and debt-management functions in relation to tax.

In observations it said it believed mediation could not be offered in resolving tax disputes because it might delay payment of due taxes and frustrate enforcement.

The Tánaiste has insisted she would make further changes if required and would have discussions with the body to ensure its powers were not impinged on.

Minister for Public Expenditure Paschal Donohoe has also objected to the establishment of a new State body to oversee the legislation.

Mr Donohoe said the new Legal Services Regulatory Authority should be assigned responsibility for this work.

Ms Fitzgerald has insisted the body would be self-financing and would be similar to the Press Council.

The legislation, if approved, would allow a judge, on his or her initiative, to invite the parties to consider mediation, even after the proceedings had commenced.

It would provide for the suspension of court proceedings in such cases to facilitate the mediation process.

Mediation has been used as an informal process in Irish law for many years, with some formal, statute-based uses, such as for employment abuse.

But the Mediation Bill, if passed, would put the obligation to consider the option on a statutory basis for the first time.

The role of a mediator is to facilitate both parties in a dispute to reach an agreement that is mutually acceptable.