Batt O'Keeffe (Cork North West, Fianna Fail)

The existing examinership process is effective and fair for companies of all sizes, large and small. The examinership provisions are contained primarily in the Companies (Amendment) Act 1990 and are widely recognised to have operated successfully in the two decades since their introduction, a period which has seen both sides of the economic cycle.

The fundamental principle of the examinership provisions is that they offer protection for a short period to a company which is considered by the court to have a "reasonable prospect of survival". I stress the importance of this test – the remedy of examinership is only intended to be availed of by a company which has a reasonable prospect of continuing on an ongoing basis after the examinership and which has an underlying sound business model to continue. The examinership process does not, and was never intended to, offer businesses an opportunity to walk away from debts or from amounts legitimately owed to other creditors. It must be remembered that the debts of any company do not exist in a vacuum. Often these debts are owed to other small businesses whose viability in turn may depend on the successful recovery of the amounts involved.

Representations have recently been made to my Department suggesting changes to the examinership process which would significantly reduce the role of the courts – a form of "examinership lite". Given that successful examinerships inevitably involve losses for creditors – whose viability may also be at stake – it is critical that the process is not only fair but seen to be fair, and the role of the courts is not to be underestimated in this regard. Subject to the maintenance of this fairness criterion, I remain open to any suggestions that may improve the effectiveness of the process.

See this speech in context