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Thursday 7 December 2023 Dublin: 8°C
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Red Tape

Cuts to 'red tape' could save businesses up to €5m a year

Richard Bruton raises the income limits at which businesses need to be audited, cutting down on administration costs.

THE MINISTER for Jobs, Enterprise and Innovation Richard Bruton has announced new measures aimed at cutting red tape and helping Irish businesses to save up to €5m a year in administration costs.

Bruton has announced that he is to raise the current threshold at which businesses must hire external auditors, to the maximum amount allowed under European Union law.

Currently, any business with a turnover of over €7.3m each year, or a balance sheet worth more than €3.65m, is required to seek external auditing. Those limits are to be raised to €8.8m and €4.4m respectively.

The measures, which will apply to at least 1,000 businesses, form part of plans to reduce business’ bureaucratic costs by €500m by the end of 2012.

“The role of Government is to create the environment in which more businesses can establish, expand and create the jobs we so badly need,” Bruton said in a press statement.

“A crucial aspect of this is reducing costs faced by businesses, and I am determined that Government will act urgently to address the costs that are directly within its control.”

Bruton added that his department would be leading efforts to further cut red tape, helping other public to cut their bureaucratic costs.

In 2008, the previous government set a target to cut the administrative burden of business regulation by 25 per cent by 2012. Bruton said his department was in line to meet that target.

Chambers Ireland welcomed today’s announcements, describing red tape as “one of the biggest challenges facing Irish businesses”.

“Employers continue to do all they can to retain and create jobs,” its CEO Ian Talbot said. “Any moves to reduce compliance costs and time for employers are welcomed.

“The government should use this decision as a template to revisit all other transpositions of EU directives into Irish law, to ensure that Irish businesses are not burdened by unnecessary legislation.”

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