As identified in the Government’s White Paper on Enterprise 2022-2030, a well-functioning regulatory environment is an essential condition, underpinning a competitive and productive economy. Ireland has long been considered a conducive environment for enterprise to develop and grow and we continue to perform well across a range of indicators for the business and regulatory environment. This is reflected in the most recent IMD World Competitiveness Booklet which ranks Ireland 3rd in the world for both government and business efficiency as well as business regulation.
A key goal of my Department’s current Statement of Strategy is to enhance our business regulatory environment and Ireland’s attractiveness as a place to do business. This results in an ongoing focus on the implementation of effective business regulation and reduced administrative burdens, through the development of policy that is evidence-based, employing and promoting the SME Test, public consultation and impact analysis.
Forthcoming initiatives to update and reform the regulatory environment for business include:
- updating the Companies Act with a range of practical, pro-enterprise reforms consistent with ensuring Ireland’s regulatory framework provides flexibility and is fit for modern business operating in an increasingly digital and virtual environment. This includes proposals to provide for virtual AGMs and amending the provisions regarding SME audit exemption to provide for a graduated regime to deal with late filing by small / micro companies;
- reform and modernisation of the legislation governing co-operative societies and limited partnerships and business names;
- implementing the recent revision of the monetary thresholds in the Accounting Directive which will reduce the regulatory/administrative burden related to corporate reporting for over 3,000 companies.
In recognition of the challenging business environment being experienced by some small businesses, my Department has developed and implemented the Small Companies Administrative Rescue Process, known as SCARP. This is a dedicated rescue process for small and micro companies which makes rescue and restructuring quicker, more accessible and affordable to fundamentally viable companies experiencing temporary difficulties.
My Department continues to drive efficiencies and reduce the administrative burden on business through the digitisation of services. In this regard, the volume of online filing with the Companies Registration Office is now in the region of 95%, resulting in greater efficiencies and reduced processing times in the CRO and savings to business of in the region of €8m per annum.
Much of our regulation originates, or is influenced by developments, at EU level. In this regard, the quality of such regulation is of vital importance. Considerable effort has also been expended by the European Commission to advance its better regulation agenda in order to make EU laws simpler, more targeted and easier to comply with. This is also an area of ongoing focus at Council level. Recent initiatives in this area include the introduction of a specific competitiveness check in the impact assessments conducted by the European Commission in order to ensure that the impacts of its proposals on the competitiveness of businesses are properly considered. The Commission has also launched an initiative to rationalise and simplify reporting requirements, with the ultimate aim to reduce such reporting burdens by 25%, without undermining any related policy objectives.
I am committed to ensuring that we have a modern and responsive business regulatory environment, which reflects international best practice, will ensure that Ireland stays attractive as a place to do business and can facilitate enterprise and entrepreneurship, while providing appropriate safeguards for stakeholders.
