Ms Fiona O'Dea:

I will try to answer those questions as best I can. On the costs of SCARP versus examinership, we understand the cost can range from €15,000 to about €70,000, with the average coming in at about €40,000. Our understanding is that this is substantially lower than the average examinership, which typically ranges from about €80,000 to €120,000.

In terms of the cost of the process itself, the costs are largely determined by the legal and administrative costs. SCARP is as cost-efficient as possible, bearing in mind the safeguards that must be put in place and the possibility of recourse to the courts. In terms of the fees that are charged by the process advisers, it is the company itself that decides to appoint an insolvency practitioner. Before an insolvency practitioner is appointed, he or she is required to be upfront about the costs that are going to be incurred. The company can shop around. It does not have to go to the big firms: it can be the local accountant or solicitor. A company does have the option to shop around.

As to whether it is a barrier to entry, we had a public consultation on the miscellaneous provisions Bill that has completed pre-legislative scrutiny here and the issue of costs is not something that has been brought to our attention. It has not been raised with the Department or identified as a blocking feature to entry to SCARP. As I mentioned, the existence of SCARP itself can allow for people to engage constructively outside the process.

In terms of the survival rate, it is too early to say and I do not have any data on that but it is something that will be watched. In terms of the sectors that have availed of SCARP, last year the top three, according to the data I have here, were construction, manufacturing and technology. Retail is also featuring, as are the accommodation and food sectors.