Dáil debates

Wednesday, 5 February 2014

Companies (Amendment) Bill 2014: Second Stage (Resumed) [Private Members]

 

7:25 pm

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group) | Oireachtas source

I welcome the Bill and compliment Deputy Donnelly on its introduction. He has worked with legal practitioners on producing what is a well-thought-out and well-structured Bill. It protects jobs and small, viable industries. I am surprised and disappointed that the Government has not taken the opportunity to take it on board. There may well be flaws in it, as Deputy Donnelly has indicated on the basis of his not having access to the drafters of legislation, but the legislative process in the Oireachtas is the proper means of teasing out and amending flaws so as to bring about an improvement. This raises the question as to whether the Government's opposition to the Bill has more to do with petty politics than anything else.

Small business is the heart of our communities and towns. It is the lifeblood of the main streets in all towns and villages. Sadly, many small businesses have closed and are closing. Many tend to struggle until Christmas and find in the new year that it is no longer possible to continue. A large number of small businesses close at this time of the year, with the attendant loss of a significant number of jobs, which are mainly based on the main streets of towns and villages.

The Bill has the aim of protecting small viable companies and thereby protecting the jobs they are providing. It offers an amended system of examinership to small firms with fewer than 50 employees and a turnover of less than €10 million. It is important to remember that small industries comprise approximately 99% of businesses in the State, and they provide up to 70% of the employment. The most fundamental issue facing small businesses is the question of debt, which is obviously jeopardising their survival. The examinership process provided for in the legislation is designed to deal with this and make examinership accessible to small businesses. What is proposed is an improved system of examinership. The very question of job creation and retention is at the centre of this legislation. Jobs will be saved if it is implemented. According to the Central Bank, half of the loans to small and medium-sized businesses are in distress. The problem of over-indebtedness is certainly killing small businesses as we speak. The opportunity should be taken to introduce this legislation and thereby protect jobs.

The current examinership process is very expensive but most of the expense is not necessitated as it relates to legal fees and fees incurred by the examiner in preparing for court. Therefore, there are significant advantages to the proposed legislation. It presents a win-win situation for small businesses, job creation and the economy generally. The only people who would appear to lose out as a result of it would be the legal eagles in the Four Courts.

The constitutionality of the legislation has been raised. Deputy Donnelly and the legal team with which he has worked are satisfied that it is constitutional. If this is not the case, I would like to see the legal advice to that effect. We certainly have not heard it yet. All in all, this is well-drafted legislation. It is welcome as it would retain and protect jobs.

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