Róisín Garvey (Green Party)
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I am not surprised the World Bank has no great insights. I do not know how concerned the World Bank has ever been about keeping small businesses afloat. I do not know if it is the best place to go. I imagine other departments of enterprise, trade and employment might have better insights into how successful their SCARP-type schemes might be. I would not go to the World Bank for that kind of advice, from my experience of it.

One issue is that SCARP is only relevant if the amount that can be paid exceeds the liquidation value. If you owe €1 million and the breakup value is €1.2 million when everything is liquidated and sold off, creditors do not have to accept SCARP. If SCARP could lose that aspect, it would be brilliant. The Government could stop companies being liquidated. If the Government did so, jobs would be saved and future tax receipts would be guaranteed to the Government. Perhaps a scheme to cover the SCARP and liquidation value would be an emergency measure.

Also, SCARP requires a component of new investment. If the Government made this possible via a type of business expansion scheme, BES, it would allow people to get in tax-free outside investment to allow SCARP to go ahead, or if the Government had a scheme to put in equity that could be bought out later, that would be the best option.

Keeping a company going is a lot cheaper than trying to start up a company. My sister has been in business for 25 years. The energy it takes to develop or duplicate a company in comparison with keeping it going is a life's work. It is another life's work to replicate that, so that is an interesting thing to look at with regard to SCARP. The Department said it reflects every year. A fund to support SCARP and cover the new investment is key, but there would have to be an exit for the Government down the road. A company would buy the Government out with profits in time. The Government could also bridge the gap between liquidation and SCARP to avoid wholesale liquidations.

Not every company is viable. I understand that. However, there are plenty of viable companies and if creditors are not obliged to engage with SCARP, I can see how it is an issue. Do the witnesses have any thoughts on that? Have they looked at it at all?