Sharon Keogan (Independent) | Oireachtas source

The Minister of State is welcome to the House. According to the Central Statistics Office, CSO, there are nearly 1 million people employed by SMEs in this country. According to the Economic and Social Research Institute, ESRI, and the Central Bank, a quarter of these SMEs could be vulnerable to liquidation. Employment and livelihoods are at risk and the small company administrative rescue process could be vital in saving many of them. It is important to make one thing clear: the Bill before us does not solve this issue. In some instances, the rescue process will only kick the problems that SMEs face further down the road. With continuing lockdowns, mass uncertainty and no clear policy or guidelines coming from the Government, however, the Bill is vital. According to a regulatory impact analysis that we received in respect of this Bill, the World Bank is clear on one thing: there is no consensus on an optimal insolvency model specifically suitable for SMEs. Our insolvency rates are low but according to further World Bank commentary, it took 13 quarters from the onset of the financial crisis in 2007 before OECD countries reached a peak of insolvent liquidations. On foot of that, it is prudent to establish an efficient insolvency regime in this country because the worst is yet to come for SMEs and their employees.

While the Bill may be necessary in light of the state in which SMEs find themselves, the question must be asked as to whether we are looking at a real solution or if we are continuing to patch up a problem that we have created. The problem is lockdown - the State's intervention in the normal operation of our economy - and the continued uncertainty, with no co-ordination and unfair treatment of businesses. Some 78% of SMEs operate in sectors that are moderately or highly affected by the pandemic. These are the sectors which the Government and NPHET called non-essential. I would like to remind everyone that there is no form of employment or business that is non-essential. There is a complete lack of respect from this Government and public health toward SMEs. While this Bill would help viable companies survive, it would not help all the companies affected by the Government's policy these past 18 months to survive. It is too little, too late.

There are zombie companies operating in Ireland. These are companies that are not viable, that cannot service their debt in a growth economy and that the rescue process will not save. However, we will pump them with support under the false illusion that an end is in sight. These companies are already dead; we are just keeping them alive with life support. This is a positive end for some but many will not survive. Where is the end? Where is the plan?

We are considering this Bill and the Finance (Covid-19 and Miscellaneous Provisions) Bill today, both of which are designed to help business as we emerge from the pandemic. Are we emerging from it? We select dates for reopening and then we change them. There is no clear plan or goal and, in the meantime, we are passing legislation that is designed to keep the show on the road. The show is over for many companies. Even if it is not over and even if the rescue process will help them survive, the headache, heartache and hurt that the rescue process will cause for creditors and business owners is nothing to be commending. The companies Bill is necessary and the rescue process is more accessible to SMEs than examinership is but at the end of the day, we have failed businesses in this country. This process will save some businesses and it will not save many which, if we had treated them as essential and important, and as they deserved to be treated, would not require the rescue process.