Thursday, 3 June 2021
Department of Enterprise, Trade and Employment
Government approved the priority drafting of the Companies (Small Company Administrative Rescue Process and Miscellaneous Provisions) Bill 2021 on 11th May 2021. Drafting is currently underway with a view to enactment in advance of the summer recess. Officials from my Department continue to engage intensively with the Attorney General and Parliamentary Counsel to progress the Bill within this timeframe.
It is recognised that Ireland’s existing rescue framework, examinership, while internationally recognised and successful in its own right, may be beyond the reach of small companies due to the associated costs. The Small Company Administrative Rescue Process (SCARP) seeks to mirror key elements of examinership in an administrative context thereby reducing court oversight resulting in efficiencies and lower comparable costs. It will have limited court involvement where creditors are engaged in the process and positively disposed to a rescue plan.
SCARP is an integral part of the Government’s medium-term stabilisation response to the economic challenges of the pandemic, and in keeping with commitments contained in the Programme for Government. It is a further demonstration of its commitment to do all that it can to help businesses along the road to recovery as we emerge from Covid-19.