Written answers

Wednesday, 18 September 2013

Department of Jobs, Enterprise and Innovation

Company Law

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
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478. To ask the Minister for Jobs, Enterprise and Innovation if he or officials in his Department have discussed changing current legislation dealing with the disclosure of profits by supermarket chains and major supermarket groups, in view of the fact that they are not revealing profit figures and their financial data based on their operations here; if his attention has been drawn to the fact that although some publish turnover data, the profits are not disclosed; if he believes profit margins should be disclosed on their Irish operations like other sectors in the economy; his views that the argument of competitive disadvantage will disappear if they are all legally obliged to disclose such information; and if he will make a statement on the matter. [37361/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Companies operating in Ireland are free to establish and organise themselves in the most suitable form to promote and run their businesses, provided that they comply fully with relevant national and EU legislation, including relevant legislation on the content of their financial statements.

The requirements regarding the preparation and publication of the financial statements of limited companies and groups are determined by the First, Fourth and Seventh EU Company Law Directives and by the EU Regulation 1606/2002 and International Financial Reporting Standards adopted by the EU under its provisions. These requirements are largely reflected in the Companies Act 1963, the Companies (Amendment) Act 1986 and the European Communities (Companies: Group Accounts) Regulations 1992, as amended. Equivalent requirements apply across the EU. The Fourth and Seventh Directives have been replaced by a new Accounting Directive 2013/34/EU which is required to be transposed by July 2015. The requirements concerning the accounts of unlimited companies are governed by domestic legislation.

The extent to which profits are or are not disclosed is of general application and is not determined on the basis of the sector in which a company or group operates. The requirements under Company Law are essentially the same for companies or groups that operate supermarkets as they are for companies or groups active in any other sector of the economy.

I consider that a disclosure regime targeting a specific sector could be viewed as disproportionate and discriminatory and could have negative consequences in terms of business costs and in attracting foreign direct investment.

I have no plans to amend the law in relation to this issue.

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