Reduction in red tape could save firms €500m

JOBS and Enterprise Minister Richard Bruton has announced measures to reduce the level of red tape and bureaucracy imposed on companies, in a move which should save Irish businesses up to €500 million by the end of next year.

The Government has approved Mr Bruton’s proposal to begin a process that will result in a 25% reduction in state-imposed red tape.

In addition to this, his department is increasing the number of businesses that are exempt from having to hire external auditors to the maximum level permitted under EU law. The move is expected to save Irish SMEs up to €5m in business costs per year.

“The total cost of Government-imposed regulation on Irish business has been estimated at €2 billion. The previous government committed, in March 2008, to reduce this by 25% by 2012. I was disappointed to learn when I came into Government a full three years later that very little progress had been made on achieving this important target” Mr Bruton said yesterday.

The increase in the audit exemption thresholds will mean companies with a turnover of less than €8.8m and a balance sheet of less than €4.4m will be exempt from the statutory requirement to engage independent external auditors to examine their accounts, if they have 50 or fewer employees. It is estimated that 1,000-2,500 SMEs will benefit from the move every year.

Mr Bruton said: “I am determined that Government will act urgently to address the costs that are directly within its control.

“If Ireland is truly to become the best small country in the world in which to do business, then Government must put continuously minimising and reducing red tape at the centre of our policymaking process,” Mr Bruton added.