Dáil Éireann Debate, Tuesday - 18 May 2021
164. Deputy Alan Farrell asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures he is considering to address the level of financial debt experienced by many small and medium businesses as a result of Covid-19; and if he will make a statement on the matter. [25687/21]
View answerI am acutely aware of the difficulties that the necessary ongoing Covid-19 restrictions are putting on businesses right across the country. It is a difficult time for Business owners, employees and their families. With this in mind the Government has put in place a comprehensive package to help businesses and workers during the pandemic, including the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), the COVID-19 Restrictions Support Scheme (CRSS), Small Business Assistance Scheme for COVID (SBASC), low-cost loans, the deferral and warehousing of tax liabilities and the waiver of commercial rates.
I would urge business owners to seek the supports outlined above if they have not already done so. I would also suggest that small business owners contact their Local Enterprise Office who can signpost them and advise them of supports that may be available for their business.
Budget 2021 provided a significant package of tax and expenditure measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors. Details of the wide range of supports available are on my Department’s website.
I am particularly mindful of the small and micro enterprise sectors whose contribution to our economy cannot be understated. They represent the majority of companies in Ireland and employ in the region of 788,000 workers. On the 11th May last, I announced that I had secured Government approval for the priority drafting of the Companies (Small Company Administrative Rescue Process and Miscellaneous Provisions) Bill 2021. The Bill amends the Companies Act 2014 to provide for a new dedicated rescue process for small and micro companies.
While Ireland’s current rescue framework, examinership, is internationally recognised and successful in its own right, the associated costs mean it may be beyond the reach of small and micro companies. The Bill will ensure these companies have access to an alternative framework, which incorporates key elements of the existing examinership model in an administrative context. The Bill provides an alternative to examinership, for the benefit of small and micro companies, which is more cost efficient and capable of conclusion within a shorter period of time.
The main provisions of the Bill can be broadly summarised as follows:
- designed for “small” and micro companies (as defined by the Companies Act 2014) which represent 98% of companies in Ireland;
- commenced by resolution of directors rather than by application to Court;
- concluded within a shorter period than examinership;
- overseen and assisted by insolvency practitioners – a ‘Process Advisor’;
- the rescue plan can be passed by a simple majority in value of creditors;
- provides for format of cross class cram down of debts designed to reduce costs;
- does not require application to Court for approval of rescue plan (provided no creditor objections); and
- gives safeguards against irresponsible and dishonest director behaviour.
Small and micro companies will be key to our country’s economic recovery. It is for this reason that I am so committed to providing a genuine alternative for these companies. As we reopen the economy, I want these businesses to know that Government values their contribution and is committed to supporting their long-term viability.
