Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I thank the Deputy. The State's long-standing preventive restructuring framework in examinership is internationally recognised and has proven to be a successful tool for restructuring in its current form. However, I accept that the cost of examinership is prohibitive for smaller businesses. The Tánaiste wrote to the Company Law Review Group, CLRG, in July requesting it to consider the issue of rescue for small businesses, following on commitments in the programme for Government. The CLRG completed its work and reported back to the Tánaiste and me on 24 October 2020. The report set out its recommendations for a proposed new process for the rescue of small companies, distinct from the existing examinership legislation.

The issue of company rescue extends far beyond the distressed company itself. It impacts all creditors, which are often other small companies. Any new framework must reflect the delicate balance between sometimes competing stakeholders and provide sufficiently robust safeguards for the protection of creditors, particularly employees.

I am acutely aware of the difficulties faced by many small companies. I am committed to progressing legislation to support their long-term viability and preserve employment. Already, I have steered legislation through the House to assist in the survival of companies during the Covid-19 crisis. The Companies (Miscellaneous Provisions) (Covid-19) Act makes necessary temporary amendments to the Companies Act 2014 and related legislation. It provides for an additional 50 days in the examinership process, bringing the period up to a total of 150 days, and it increases the threshold at which a company is deemed unable to pay its debt to €50,000. The interim period for this legislation was due to end on 31 December 2020, but, following Government approval this week, it will be extended until 9 June 2021. This means that the extension of examinership to 150 days and the threshold change remain in place. It is important, in light of the extension of these temporary provisions, that viable companies and co-operatives have sufficient flexibility to restructure and trade through the crisis.

Regarding what the CLRG has proposed, it is the firm ambition of the Tánaiste and me to have a new process enacted in a timely manner.

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