Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on Deputy Donnelly's Bill and I acknowledge the efforts he and others put into bringing it to the Dáil for consideration. I do not doubt the sincerity behind the proposals to help small viable businesses in reducing their costs if they experience unsustainable debt and cashflow problems. The past five years have been some of the most challenging for many of our small and medium-sized businesses. They have responded to the changing business environment by reducing costs, developing new markets and exploring innovative ways of reaching their customers by embracing technology in order to achieve online sales and using social media for marketing purposes. SMEs are at the heart of our communities across the country, in every rural area, village, town and city. They are the backbone of the economy in many areas that will never attract foreign direct investment in the way that towns and cities will.

The programme for Government recognised the challenges facing the sector and focused on rebuilding the economy by encouraging the development of a job-rich economy, as can be seen in the implementation of the Action Plan for Jobs each year. Supporting businesses operating in Ireland has been a Government priority. Evidence shows that the efforts are being rewarded, with improvements in our competitiveness being recognised nationally and internationally. The ESRI forecast for growth levels in 2014 is 2.7%. While this is good news, we cannot rest on our laurels.

Helping all businesses by simplifying administration has been an important measure. The establishment of Microfinance Ireland and the credit guarantee scheme have had a positive impact. Employment figures are up and this is welcomed by everyone. I welcome the fact that the Minister, Deputy Richard Bruton, intends to commence legislation that will reduce legal fees by providing for cases to be dealt with in the Circuit Court rather than in the High Court, based on the report of the Company Law Review Group. I also look forward to hearing the findings of the working group that the Minister intends to establish to examine the feasibility of allowing small private companies to be placed into examinership through an administrative procedure, with some court oversight. I appreciate the intention of the Bill, but removing obligatory court oversight is risky. I am concerned about the potential impact on the property rights of directors if the examiner were to assume their powers. Whether the company has a prospect of survival can be independently adjudicated by the court at present.

This Bill has some merits, but it is weighted in favour of a troubled company, rather than taking creditors into account, as others have noted. I am concerned about this. Creditors need to be protected as they want to survive and remain viable. Regretfully, I cannot support the Bill, but one should recognise that the Government has already commenced far-reaching reform of company law which will bring together 50 years of companies Acts into a single piece of legislation. I hope it will be enacted this year as the sooner we have these reforms in place, the better.

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