Shane McEntee
Question:157 Mr. McEntee asked the Minister for Enterprise, Trade and Employment his plans to reduce the regulatory burden on small and medium enterprises; and if he will make a statement on the matter. [8579/07]
View answerTuesday, 6 March 2007
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International benchmarking reports suggest that the regulatory burden in Ireland is relatively light. The IMD (International Institute for Management Development) World Competitiveness Yearbook 2006 ranks Ireland 8th out of 61 countries surveyed for the extent to which bureaucracy does not hinder business activity. The World Economic Forum's Global Competitiveness Report 2006-07 ranks Ireland 17th out of 125 countries surveyed for having a low burden of government regulation.
While it appears, therefore, that Ireland enjoys a relatively favourable position, it remains important that every effort be made to maintain and improve this position, that the concerns of business are addressed on an ongoing basis, and that the work currently being done by our European neighbours does not see Ireland falling behind in competitiveness.
Towards that end, I established the Business Regulation Forum (BRF) in November 2005 to advise me on any changes necessary to ensure that existing or proposed regulations impacting on business meet the criteria set out in the White Paper "Regulating Better".
During 2006 the Forum collected evidence of the burden of regulation on business in Ireland. The BRF invited submissions from interested parties and received forty responses. The Forum liaised with international experts who have been active in seeking to reduce the burden on business. Six case studies were completed, looking at the day-to-day regulations that businesses face. In addition, a pilot study was carried out on ways of reducing the administrative cost to business of two specific regulations. The Forum has also reviewed the work on regulation by the Small Business Forum. I expect to receive a report from the Business Regulation Forum shortly.
In addition to the work of the Business Regulation Forum, and specifically relating to the small business sector, I recently enacted legislation to raise the audit exemption thresholds applying to small companies in respect of turnover and balance sheet to €7.3m and €3.65m. respectively. (The previous thresholds were €1.5m and €1.9m.) This will remove the compulsory annual audit costs from the very large number of companies qualifying from the enhanced exemption level.
The Minister for Finance announced a package of measures in Budget 2007 aimed at:
Reducing the Administrative Burden on Small Businesses in relation to the payment of Corporation Tax, Preliminary Tax and the requirement for a Tax Clearance Certificate, by increasing the current thresholds which trigger such requirements. In addition, the Revenue Commissioners have been asked to explore further opportunities to reduce the tax compliance burden on all firms, large and small.
Increasing the VAT Cash Accounting and VAT Registration Turnover Thresholds from 1 March 2007 to simplify administration and reduce working capital requirements on small businesses.
Finally, the Company Law Review Group (CLRG) has finalised its work on the preparation of the General Scheme of the Companies Consolidation and Reform Bill and I understand that it expects to report on its findings shortly. The CLRG's proposals will bring the existing 13 Companies Acts into one and will make it easier for firms and practitioners to understand and comply with the law relating to the incorporation and operation of companies in Ireland.