Oireachtas Joint and Select Committees

Wednesday, 8 May 2024

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Small Companies Administrative Rescue Process: Discussion

Photo of David StantonDavid Stanton (Cork East, Fine Gael) | Oireachtas source

We will get that information. I will now ask one or two more questions. Of the insolvencies that occurred last year – we heard earlier there were roughly 663 and I saw figures in other places suggesting there were more – how many are micro and small businesses that would fit into the SCARP regime? Could we get that information from the witnesses at some stage? I think 62 have engaged in SCARP but I get the impression that because it is such a good scheme, the potential is actually much greater and perhaps more should or could get involved. Would the Department and Revenue consider carrying out some kind of review or audit to see whether there are any blockages and any reasons some companies that should and could get involved are not doing so? The feedback I am getting from some practitioners is that it is easier for companies to go the insolvency route, and they are choosing that route rather than going into SCARP. That would be a shame if the companies could be rescued and the good work that is going on could be replicated and multiplied. Perhaps the Revenue and the Department officials can come back to us on that and look at their processes to see whether there is something stopping people from entering SCARP. I think that would be a useful piece of work to do.

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