Enterprise Minister asks for introduction of warning labels on alcohol to be delayed
Peter Burke says the measure could lead to higher costs for producers and consumers
Enterprise Minister Peter Burke has formally asked Health Minister Jennifer Carroll McNeill to consider pausing the introduction of health warning labels on alcohol. The mandatory warnings are due to come into effect on May 22 next year.
In the letter to his cabinet colleague, Mr Burke expressed concern that the labels would mean increased costs for Irish producers and importers, and potentially add to the price payable by consumers, at a time when prices are rising due to a multitude of other factors.
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Irish Examiner
38 minutes ago
- Irish Examiner
Advisors key to business restructuring
Financial distress rarely arrives overnight. Margins erode, cash weakens, and boardroom optimism obscures early signs of danger. It is in these moments, before insolvency sets in, that expert advisors make the difference between survival and shutdown. Legal and restructuring specialists agree: the earlier the intervention, the wider the recovery options. Shane Harron, partner at Dillon Eustace. 'The biggest mistake companies make is leaving it too late,' says Shane Harron, partner at Dillon Eustace. 'They often hope to trade their way out of difficulty, but that usually leads to more trouble than may have been necessary.' This reluctance is especially acute among SME directors, who may hesitate to incur advisory costs even when solvency concerns are already visible. Under Irish law, the test for insolvency remains simple: can the company pay its debts as they fall due? If not, directors are required to act in the interests of creditors, not just shareholders. 'This has now been given a statutory footing since 2022,' Harron notes. 'If directors become aware of insolvency, they must act to preserve assets for the benefit of creditors.' Red flags and missed signals There is no single indicator of distress, but signs often compound. Harron points to declining profits or difficulties in meeting essential services like rent or electricity. More subtle signals include late payments to key suppliers or unexpected tax arrears. 'Some of the early warning tools include the strategic maintenance of accounting records, regular financial projections, and a consistent analysis of debts and liabilities,' he says. These steps form part of the Companies Act's early warning framework, aimed at alerting directors to financial danger before it escalates. Alan Large, partner in EY's Turnaround and Restructuring Strategy group, adds: 'Typical early warning signs include breaches of financial covenants, deterioration in EBITDA performance, and sustained negative cash flows.' He also cites key non-financial triggers such as unplanned management departures or persistent customer churn. Stephen Scott, head of Restructuring & Recovery at S&W. David O'Connor, partner at BDO, points to behavioural clues. 'Margins may decline, staff turnover might spike, or creditors go unpaid, but often companies don't connect the dots. They just hope it's a bad month.' Stephen Scott, head of Restructuring & Recovery at S&W, is clear: 'Businesses do not fail because of short-term lack of profitability, they fail because they run out of cash.' Yet many companies continue operating without updated forecasts or real-time visibility of their working capital. That can turn a salvageable situation into a terminal one. David O'Connor, partner at BDO. The case for early external advice All four advisors are unanimous: bring in professionals early. 'Ideally, if directors are apprehensive about solvency, they should engage an experienced insolvency practitioner as soon as possible,' says Harron. Delay reduces strategic options and can increase legal exposure. 'Companies may only face one major crisis in a generation. We deal with them all the time,' says O'Connor. That perspective allows advisors to help with prioritisation, from critical payments and staff communications to negotiations with banks and landlords. Scott notes that for SMEs especially, outside advisors can break decision-making deadlock. 'Directors may feel that nobody knows the business better than them, but expert advice brings not just restructuring knowledge but also a third-party perspective that cuts through noise.' Early advisor engagement also protects directors. Large explains: 'If a business continues to trade while insolvent and incurs further losses, directors may face restriction or disqualification. Professional guidance helps avoid that.' Assessment and Triage The first phase of any restructuring advisory engagement is diagnosis. Harron explains: 'We investigate the company's financial affairs, taking account of assets, liabilities, income and obligations. We assess whether insolvency has occurred, and what rescue options may be available.' O'Connor's team focuses on operational fit. 'We examine whether the company is structured for today's market, not yesterday's. You'd be surprised how many firms carry legacy overhead from products or divisions they no longer run.' That mismatch often emerges in underused space, bloated wage bills or historic debt that no longer reflects business realities. 'You might have €500k in rent but only two-thirds of the space in use. Or staff working legacy roles in departments that have shrunk. That needs to be rebalanced quickly,' O'Connor says. Formal Rescue Options Where viable, companies can enter formal rescue procedures. In Ireland, examinership and the Small Company Administrative Rescue Process (SCARP) dominate. Both give legal protection from creditor action while a survival plan is developed. The difference lies in scale and cost. 'Examinership is court-led and suited to larger companies,' Harron explains. 'SCARP is more streamlined and avoids court unless objections arise. It's designed for SMEs.' The process begins with the appointment of an independent expert. 'We provide the initial report in both examinership and SCARP,' says O'Connor. 'That assessment determines whether there is a reasonable chance the company can survive as a going concern.' If accepted, creditors are grouped into classes and vote on a rescue plan. Once approved, by court or process adviser, those classes are bound, including dissenters. Executing the plan Execution demands discipline. 'Advisors play a key role in identifying non-essential expenditure that can be reduced or eliminated,' says Large. Often this includes exiting loss-making contracts, trimming staff costs, or negotiating revised terms with suppliers. Scott highlights the importance of cash control. 'We help businesses strengthen credit procedures, engage constructively with lenders, manage phased supplier payments, and prepare detailed short-term cash forecasts.' Forecasting has become non-negotiable. 'Many companies operate in an information vacuum,' says Scott. 'That's no longer acceptable in a restructuring context.' Common mistakes Restructuring is not linear. It can unravel if boards are divided or if directors fall into wishful thinking. 'We sometimes see directors continue trading in the hope of a miraculous turnaround,' says O'Connor. 'That usually just deepens the hole.' Large adds that hostility between directors, shareholders or lenders often derails otherwise viable plans. 'Restructuring requires cooperation and transparency. A confrontational approach delays progress.' Another risk is poor record-keeping. Harron warns: 'Directors must maintain clear board minutes showing the rationale for decisions taken. Those records become critical if the process fails and leads to liquidation.' Insolvency proceedings often trigger scrutiny of directors' conduct, something legal advisors are best placed to manage. As Harron says: Where a company goes into insolvent liquidation or receivership, the liquidator must file a report with the CEA (Corporate Enforcement Authority) and consider whether to bring restriction proceedings against the directors.' These proceedings assess whether directors acted 'honestly and responsibly' in the lead-up to insolvency. If they are found lacking, courts can impose a five-year restriction on holding directorships, or in more serious cases, disqualification. Harron emphasises the importance of pre-emptive action. Directors should keep accurate books and records, seek professional advice at the earliest sign of financial trouble, and document decisions thoroughly. These steps form a crucial defence if proceedings are later initiated. While there is no legal obligation to place an insolvent company into liquidation at the first sign of distress, delay increases exposure. Harron notes that 'the strategic maintenance of accounting records, regular financial projections and a consistent analysis of debts and liabilities' form part of the Companies Act early warning framework, tools that, if properly used, can guide directors through uncertainty and reduce personal risk. Strategic outcomes Sometimes the path is salvage. O'Connor shares a recent case: 'A national food chain entered examinership. We prepared the independent expert report, and the court appointed an examiner. That gave them space to restructure. It protected jobs and kept the brand alive.' Other times, value is recovered even in liquidation. Harron notes a case where the company had lost its overseas licence. 'The liquidator reinstated the licence, completed manufacturing, and extracted higher value than by simple asset sale. Creditors benefitted.' Governance, ESG and structural complexity Modern restructuring involves more than cash and contracts. Governance, ESG and tax efficiency now feature prominently. 'Governance failures are closely examined in formal processes,' says Large. 'Sophisticated lenders now ask about ESG and strategic alignment before funding.' Group structures also require scrutiny. 'Even mid-sized businesses can have overly complex structures that add cost and risk,' says Scott. 'Restructuring presents a chance to streamline and unlock value.' Strategic restructuring is about timing, clarity and decisive action. Directors who confront distress early and engage advisors improve their odds of recovery. Those who delay may find that the path to rescue has narrowed or closed entirely. In today's climate, where cash runs tighter and lender tolerance is thinner, that distinction can be fatal.
Irish Independent
an hour ago
- Irish Independent
Astellas invest €129 million in its Kerry and Irish operations
Astellas is currently building a new €330 million facility in Tralee and has an existing facility in Killorglin. It is one of Japan's largest life sciences companies and a leading developer and manufacturer of pharmaceutical products globally. Minister Foley welcomed the investment in its Irish operations in Kerry and Dublin over the next three year. Astellas is starting the process of building a new drug product fill facility in Tralee, creating 120 new jobs. Additionally, more than 500 workers will be involved in the construction phase. The new facility will accelerate the expansion of Astellas' in-house production capabilities and ensure a stable supply of high-quality medicines to patients around the world. The facility will also be fully digitally enabled and will adhere to high energy and environmental standards. 'I'm really pleased to welcome this multi-million euro investment by Astellas, supported by the Government through IDA Ireland,' Minister Foley said. 'This is a real boost of confidence, in addition to the €330 million invested for a state-of-the-art facility in Tralee and the fantastic existing facility in Killorglin. It is a great, positive story for all involved. Thank you to Astellas for their unstinting commitment to Kerry,' she added. Astellas say it will undertake a comprehensive plan to equip employees in Tralee with skills to address strategic challenges, focusing on leadership development, digital literacy, environmental sustainability, innovation, and compliance. The company will set up a research and development project in Tralee to enhance the production of antibody-drug conjugates and monoclonal antibodies, aiming to establish a high-efficiency, low-waste, multi-product biologics facility. Moreover, Astellas will have a Green Capital project in Tralee to reduce energy use and lower CO₂ emissions. The planned upgrades include heating, ventilation and air conditioning systems, a woodchip boiler, solar panels, and an on-site wastewater treatment plant. Astellas Killorglin will implement several initiatives to significantly reduce energy consumption and CO₂ emissions. These measures include wind turbines, woodchip boiler economisers, chiller upgrades, BioLPF/HVO tanks, water heat pumps, and energy metering systems. Speaking from Tokyo, Minister for Enterprise, Trade and Employment, Peter Burke, who met with members of the Astellas senior leadership team, stated that the announcement by Astellas highlights Ireland's role in the global life sciences sector. 'Our ongoing investment in education, infrastructure, and innovation continues to create the optimum environment for companies to thrive. Astellas' decision to grow its footprint in both Kerry and Dublin highlights the strength of Ireland's offering and our commitment to supporting enterprise development across all regions,' he said.
Irish Independent
3 hours ago
- Irish Independent
Fairer approach required from Sky Ireland to accommodate ordinary people and small publicans
Corkman Today at 02:00 Calls have been made for a 'fairer' approach from major broadcasters like Sky Ireland amid rising concerns over affordability, particularly for small publicans and struggling households. Cork TD Michael Collins who is the leader of Independent Ireland said Sky's constant price hikes are making sport unaffordable for ordinary people and small pubs that are struggling to stay afloat. 'Sky has been raising its prices year after year and people are struggling. The cost of simply showing sport in a small pub is heading towards €1,000 per month and over €2,000 for larger venues. That's simply unsustainable for many rural and family-run pubs.' 'There has to be give and take,' said the Cork South West TD. 'Pubs rely on live sport – soccer, GAA, horse racing – to survive. These events bring people in the door, help communities to stay connected, and support local employment. The burden of broadcasting fees, on top of insurance, staffing, electricity and carbon taxes, is pushing too many to the brink.' Deputy Collins added that the wider public is also struggling under the weight of rising fuel, heating, food, and housing costs. 'People have fewer and fewer small comforts. Watching a match with a neighbour or friends is one of the last ones left. We would hope that in the current climate of sky-high prices across the board, Sky and other providers might sit down and engage with both the licensed trade and ordinary viewers to find solutions.' 'If sport is priced out of reach for the very people who support it – the customers, the publicans, the communities – then everybody loses,' he added. Separately Sky Ireland has warned 400,000 dodgy-box users of 'consequences' if caught streaming sport or films using the illegal devices. The warning comes as the broadcaster, along with other industry bodies, appeared in the High Court after an injunction and search order was issued against a suspected operator of a dodgy-box streaming service in Wexford. The alleged operation includes piracy of Sky, Premier Sports, GAA+, LOITV and Clubber, among others, accessed by thousands of Irish dodgy-box owners and multiple resellers. Sky Ireland is also set to use private investigators to monitor WhatsApp chats to detect who is buying dodgy boxes. In a significant escalation, the broadcaster is now considering civil action against individual users for the first time. However, the Data Protection Commissioner (DPC) will meet the broadcaster to discuss whether such methods are legal according to GDPR privacy law. About one in five Irish households use a dodgy box, according to a ¬recent Sunday Independent poll. ADVERTISEMENT The streaming services are commonly sold through WhatsApp groups and other online discussion forums, where details of local dealers are provided. In Ireland, using a dodgy box to stream pirated content is an offence under the Copyright Act, punishable by up to five years in prison or a fine of up to €127,000. However, gardaí have consistently declined to pursue individual consumers of dodgy boxes, reserving action instead for commercial operators and distributors of the services.
