Seanad debates

Tuesday, 9 May 2017

Companies (Accounting) Bill 2016: Report and Final Stages

 

2:30 pm

Photo of David NorrisDavid Norris (Independent) | Oireachtas source

I thank the Minister. I have a series of questions for her. First, if this is so vital, why is Ireland the only country in the EU to enact such a provision? What is so extraordinary about Ireland that it requires this unique provision? My information, which I assume is accurate, is that Ireland is the only country in the EU that has this form of legislation. I ask the Minister to confirm that is the case.

The Minister commented on the 13% compliance rate and the fact that it has now reached 90%. There is not a huge problem of non-compliance. However, she referred to section 363 as the principal factor in ensuring that this is the case but that is not true. I have put on the record the fact that the then Minister for Enterprise, Trade and Employment, Mary Harney, introduced measures which led to the striking off of 500 companies a day. Obviously, dormant companies would not have been making returns. If it is as the Minister says, why are so many small and medium enterprises screaming their heads off and looking for this exemption to be removed? Why am I getting all of these emails? Why am I getting such detailed emails analysing the situation?The bureaucracy and the civil servants always go with the status quo. Of course, they are not going to say they want to change this or get rid of it. The question as to why Ireland uniquely needs this provision has not been answered. The Minister said it was extended to cover dormant companies. Perhaps because I am a bit jet-lagged I am missing something. It would have struck me, however, that a dormant company is going to be subject to those penalties automatically. If a company is dormant, it is not going to be making returns. Dormant means it is asleep and, accordingly, will not be making returns. While there may be a line in legislation stating they are exempt, it is rubbish because when they fail to put in returns, they will be whacked. I do not have that much sympathy for dormant companies because if they are dormant or kind of dead, they should be got rid of.

Will the Minister explain why other European countries do not have this provision? The figures show the significant impact of the pruning exercise in getting rid of dead wood undertaken by the former Minister, Mary Harney. That is what led to the increase and not the threat of sanction.

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