Mr. Colm Forde:

The question of the timing of implementation is one that is raised. Part of Ireland's competitive advantage is that we have a stable and effective regulatory environment that is proportionate and that people can trust. A large part of the feedback we get from all stakeholders is that they ask us to give them consistency. When they have certainty, they can invest. Contrary to what Deputy McCormack has said, the view we have received from stakeholders is to implement the legislation as soon as possible so they know what they are dealing with and can plan appropriately. Delaying it means they are in a less certain environment and they cannot plan or invest appropriately. The feedback we get is that it gives us a competitive advantage if we are able to get the laws into place quickly rather than delaying or, as I mentioned earlier, potentially being in infringement proceedings with the European Commission, which is the case with a large number of countries for CSRD.

Regarding the obligation on SMEs, as my colleagues and I have outlined, the companies that are in scope are those with 1,000 or more employees. These companies have an obligation to go to their first tier of the supply chain to understand what impacts those first tier companies have. We mentioned earlier that there would be a template for reporting in terms of CSRD, which will limit the data points that the large companies in scope can ask of those SME cohort companies. Equally, for the CSDDD, there will be a limit on the amount of information that can be asked of SMEs, particularly for companies that have fewer than 500 employees.

Regarding the burden on SMEs the Deputy mentioned, another part of an omnibus proposal which is coming from the Commission is to introduce a new category of companies, called small mid-caps. At the moment, when we have different pieces of European regulation, there are proportionate levels of obligations, depending on whether the company is large or small. They are going to introduce a new tier of company called small mid-cap. These will have a reduced layer of reporting, relative to larger companies. There is an ambition to have a tiered and proportionate approach to regulatory burden, for this and other regulations. My colleagues may want to add specifically on both of those pieces.