Mary White (Fianna Fail) | Oireachtas source

Go raibh míle maith agat. I welcome the Minister of State here this morning and thank her for representing the Minister for Jobs, Enterprise and Innovation. She has a mega portfolio. I congratulate her on the energy and passion she has shown for her wide range of responsibilities.

In late 2012 the Minister, Deputy Richard Bruton, announced his intention to proceed with legislation to allow small private companies to apply to the Circuit Court for examinership. The provision to give this effect was included in the Companies Bill 2012. Therefore, it was clear that due to the technical and complex nature of the Bill it would take time before the enacting process would be completed.

First, I commend the Minister on bringing forward the Companies (Miscellaneous) Provisions Bill 2013. It fast-tracks the provisions of the Companies Bills 2012 regarding Circuit Court examinership, as well as a number of other provisions highlighted in this Bill. It is clear that such provisions, outlined in this Bill, are of great importance in supporting business, particularly for smaller companies.

I wish to point out that the Companies (Miscellaneous) Provisions Bill 2013 is part of a once in a generation piece of legislation, that is the Companies Bill 2012. The Companies Bill 2012 will make company legislation fit for purpose in this modern era. It is also important to point out that an extensive amount of research, consultation and hard work was conducted by the previous Government in the drafting of the Companies Bill 2012.

I support the Companies (Miscellaneous) Provisions Bill 2013 in principle. However, I have some concerns that I shall raise with the Minister. I support section 2 that will amend existing examinership provisions to provide for the option to allow small private companies to apply directly to the Circuit Court to have an examiner appointed, instead of having to apply to the High Court as is currently the case. The elimination of the need for High Court involvement will immediately lower costs and provide greater accessibility for small private companies to the process of examinership.

The Department of Justice and Equality has estimated that examinership in the Circuit Court, as opposed to the High Court, will save companies 30% in legal fees alone and there will be potential for further savings. The importance of accessibility cannot be underestimated when one considers that roughly 2,000 companies per year go into insolvency, yet only 30 or so enter the process of examinership.

Increased accessibility to examinership will give more companies the opportunity to restructure their debts and have a fighting change at survival, as opposed to going straight into liquidation. Allowing smaller companies the option of applying directly to the Circuit Court rather than the High Court is a measure that works in theory but may not be as straightforward in a practical context. Judges, solicitors, barristers and accountants will have to be committed to the new process. Practitioners will have to be specifically trained in examinership law and work together in a cohesive system in order for this process to work. I am interested in hearing the Minister of State's thoughts on this aspect of section 2.

Sections 3 and 4 relate to the electronic filing of accounts with the Companies Registration Office and will simplify the process of e-filing annual returns. This will provide for more efficient electronic filing of accounts with the CRO, thereby reducing the associated administrative burden. I welcome this provision, which has the potential to reduce the cost of compliance by making it easier for businesses to file statutory accounts online.

I have concerns about section 6, which allows for a levy on statutory auditors and auditors of public interest entities in order to defray the cost to the IAASA of carrying out functions of external quality assurance in respect of these public entities. Subsection (2) states that "the Supervisory Authority may impose, with the Minister’s consent and subject to subsections (4) to (6), one or more levies in each financial year of the Supervisory Authority on statutory auditors and audit firms auditing public-interest entities." Regular inspections of statutory auditors is, of course, important to ensure that systems are in place that allow for consistently high quality in audits, but I ask for clarity on the amounts to be levied and whether a limit will be set in this regard. I also ask for clarity about who will be responsible for paying this levy. Will it be imposed as a burden on the taxpayer?

Section 7 provides for the application of investigation and penalty systems to certain third country auditors. I welcome this section because it will bring us up to scratch with EU standards. No international auditor with an Irish subsidiary should escape reprimand for malpractice simply because it is headquartered in a different jurisdiction.

Fianna Fáil supports the Bill in principle and we commend the Minister for Jobs, Enterprise and Innovation on facilitating its expeditious introduction in order to reduce the costs associated with examinership for small businesses. We must support businesses that have potential for growth, exports and job creation but are crippled by legacy debts as a result of the financial crisis. Small businesses are central to the growth of our economy because they employ 33% of the people who are at work in Ireland. Approximately 200,000 small businesses employ more than 650,000 people. Allowing small companies to apply directly to the Circuit Court for examinership will make it cheaper and easier for businesses to restructure their debts. If smaller companies are given the opportunity to survive their current difficulties, more jobs will be saved.