Brian Walsh (Galway West, Fine Gael)

I thank the Minister for his comprehensive and helpful reply. The main loser in the circumstances I have described is not the small suppliers, although they also incur losses, but the Revenue Commissioners to whom VAT, PRSI and PAYE remain unpaid. It is galling to see the directors establish new companies immediately after closing phoenix companies. I am aware of several cases in my constituency of companies closing on one evening and re-opening under a different guise the following morning. The powers available are clearly not restrictive enough and the provisions of the Companies Acts clearly not sufficient to deter unscrupulous company directors from engaging in the types of behaviour I have described. The current provisions must be strengthened. In that regard, it may be necessary for the Minister for Finance to introduce legislation to strengthen the hand of the Revenue Commissioners in dealing with the individuals involved in such companies.

As I noted the main loser in the case of phoenix companies is the taxpayer who incurs losses as a result of the non-payment of taxes. Some of the examples referred to me indicate that the moneys not collected by the Revenue Commissioners could amount to tens of millions of euro, which is a significant amount of money. Steps should be taken to address this issue more comprehensively.

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