Government ‘sitting on its hands’ when thousands of companies could be saved

The Government has been accused of rejecting legislation that could save thousands of companies and tens of thousands of jobs without spending a

penny of public money.

Independent TD Stephen Donnelly made the allegation as he told the Dáil 4,700 companies had declared insolvency in Ireland in the past three years and only 64 availed of the examinership process.

Mr Donnelly said one quarter could have been saved but they failed here “because we do not have a functioning examinership process”.

He warned many more companies would go to the wall in the coming months and years, when they did not have to, “but the Government is sitting on its hands”.

Threat
Taoiseach Enda Kenny insisted however the "vast majority of small and medium enterprises suffering overhang from the boom will be back in shape by the end of the year".

Mr Kenny said the Companies (Amendment) Bill was “legally unsound and potentially damaging to other creditors”.

Insisting the Bill was sound, Mr Donnelly said he had worked on it with a solicitor who had been involved in more than half of examinership cases. The Bill would make examinership a real option for struggling companies and would make it cheaper and faster.