Written Answers Nos. 1-3
1. Deputy Patricia Ryan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the small business assistance scheme for Covid can be extended to non-rateable businesses whose turnover is below 25% of 2019; and if he will make a statement on the matter. [23360/21]
Amharc ar fhreagraAs you are aware, 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), low-cost loans, the deferral and warehousing of tax liabilities and the waiver of commercial rates.
You will also know that 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.
The Small Business Assistance Scheme for COVID (SBASC) is a part of this suite of measures. The first phase of SBASC closed for applications through the local authorities on 21 April 2021. Phase 1 of the scheme is currently being reviewed and details of Phase 2 are due to be announced in the coming weeks.
I want to assure you, that I and my Government colleagues are keeping all the current business support schemes under review.
2. Deputy Neale Richmond asked the Tánaiste and Minister for Enterprise, Trade and Employment the way in which the non-financial reporting directive which requires that companies with over 500 employees in size need to report on their carbon emissions in their annual reports will be enforced in Ireland; if a similar initiative will be put in place for companies and organisations with less than 500 employees; if a specific standard will be specified; and if he will make a statement on the matter. [23587/21]
Amharc ar fhreagraThe current requirements under company law for large companies with more than 500 employees to disclose information on their environmental performance are contained in the European Union (Disclosure of non-financial and diversity information by certain large undertakings and groups) Regulations 2017 (S.I. 360 of 2017), as amended. The Regulations transpose the EU requirements of Directive 2014/95/EU on disclosure of non-financial and diversity information. The Directive is underpinned by non-binding guidelines for disclosure prepared by the EU Commission.
Failure to comply with the obligation to disclose information under the Regulations is an offence in Irish law. The maximum penalty on conviction is a fine of up to € 5,000 and/ or a term of imprisonment of no more than 6 months. Enforcement is a matter for the Office of the Director of Corporate Enforcement.
As one of the actions under the European Green Deal, to enhance further the disclosure by companies on climate and environmental data, the EU Commission initiated a review of the Directive 2014/95/EU. A proposal for a Corporate Sustainability Reporting Directive was published on 21 April 2021. The Deputy can find further detail on the EU Commission proposal on the Commission’s website. https://ec.europa.eu/info/publications/210421-sustainable-finance-communication_en#csrd
The proposal will revise the existing Directive and includes in scope all large companies and listed SMEs except microenterprises. It is also proposed that EFRAG, the European Financial Reporting Advisory Group, will be responsible for developing new standards for EU sustainability reporting.
I understand it is anticipated that EU Council negotiations at working party level will commence in the near future. The final proposal will depend on EU Parliament and Council agreement and I understand that this is hoped for in the first half of 2022.
3. Deputy Cormac Devlin asked the Tánaiste and Minister for Enterprise, Trade and Employment when new legislation to introduce a more streamlined insolvency process for persons and businesses will be finalised; and if he will make a statement on the matter. [23299/21]
Amharc ar fhreagraWith regard to corporate insolvency, while the State’s long-standing preventive restructuring framework, examinership, is internationally recognised and has proven to be a successful tool for restructuring in its current form, I know that the costs can be prohibitive for smaller businesses.
That is why the Tánaiste wrote to the Company Law Review Group in July 2020, requesting that it consider the issue of rescue for small businesses. Membership of the CLRG, a statutory body, is representative of a broad range of stakeholder experts, making it uniquely well positioned to advise on company law. The CLRG completed its work within an accelerated timeframe reporting back to the Tánaiste and I in October 2020. The report set out its recommendation for a proposed new process for the rescue of small companies, distinct from the existing examinership legislation. Since then my Department has been developing a General Scheme of Bill and which was also informed by a public consultation in February.
The Companies (Amendment) Bill providing for a dedicated rescue process for small companies is included in the priority summer legislative programme. Given the urgency of the proposed legislation to assist viable companies remain in business, I will bring the General Scheme of Bill to Government shortly.
In so far as personal insolvency is concerned, the Programme for Government committed to introduce the necessary reforms to our personal insolvency legislation and ensure that sufficient supports are in place for mortgage holders with repayment difficulties.
The Minister for Justice has brought forward the Personal Insolvency (Amendment) Bill 2020 which seeks to make it easier for insolvent persons, including those in financial difficulties arising from the economic impact of the COVID-19 pandemic, to avail of the Personal Insolvency Act effectively. The Bill has completed all stages in the Seanad and is currently awaiting Second Stage in the Dail.
A further Personal Insolvency (Amendment) Bill is included in the Government’s summer legislation programme. That is a larger Bill to address comprehensively the recommendations arising from the statutory review of the Personal Insolvency Acts which is currently being carried out by my colleague the Minister for Justice. Among the issues raised by submissions to the review are proposals to simplify and streamline the overall personal insolvency process. The report of the review is expected to be completed this summer, and work will then begin on the General Scheme of that Bill, with a view to submitting proposals to Government before the end of the year as set out in the Justice Plan 2021.
