Welcome news for small business

Date:

Tuesday, March 9, 2010

Less red tape must not mean less workers rights

LIAM Aylward, MEP has welcomed the European Parliament vote in favour of exempting struggling small businesses from producing onerous annual accounts and promote the activity of micro-European entities.

"I welcome this move to ease the administrative burden on small businesses at this very difficult time. It makes no sense whatsover that small business have to adhere to the same reporting rules as the big companies that have the time and money to produce annual accounts with ease. The current rules seem excessive and these proposals will mean more simplification, small business should benefit quickly from the savings that are expected from this proposal - which is good news"

The objective of the proposal is to reduce the bureaucratic burden on micro-entities in order to enhance their competitiveness in the wake of the financial crisis. Micro-entities are defined as businesses where two of the following three criteria apply: 1. The balance sheet does not exceed €500.000; 2. The net turnover does not exceed € 1,000,000 and; 3. The average number of employees during the financial year is 10 or less.

"While I welcome any move that would give breathing space to employers and small businesses in this tough economic environment, this must not infringe on employees rights. Less red tape must not damage workers rights "