Michael D'Arcy (Fine Gael) | Oireachtas source

I do not think that was clarified. We must put where we are currently into context. I think Senator White mentioned that unemployment is at 11.8%. Much progress has been made from where we were two years ago when it was more than 15%. In the first quarter of this year, the deficit has been reduced by €1.4 billion since this time last year, which is an incredible achievement. There has been a tax take increase year on year of €633 million. The two really important headings of income tax and VAT are both up.

That said, the really important aspect for small and medium-sized enterprises is that the public is able to purchase what those enterprises sell or create. It is crucial, when the opportunity arises, that the Government takes it in order to give something back. Taxes, which are all at the maximum level, including VAT, PRSI, which I consider a tax, USC and income tax, should be reduced so the public has more money in its pocket and can purchase the products small and medium-sized enterprises create.

I will focus on two aspects on which the Minister of State did not touch. One is the benefit of examinership, which is important. In the first quarter of 2014, 410 jobs were saved due to the benefit of examinership. It is as important to hold on to the jobs we have as it is to create new jobs. Yesterday on the Order of business, I mentioned the 654 jobs in Elverys. Elverys was in examinership but as a result of a management buy-out, those jobs will be retained under certain terms and conditions. It is important we create jobs but it is also important we do not lose jobs and take our eye off the ball.

I wish to touch on funding by the banks. We are all dissatisfied with how the banks have been funding small and medium-sized enterprises. It is important we start to move towards the model in other jurisdictions, in particular outside the EU - the US provides the best model - where non-bank funding is made available to companies, whether through an equity stake or another method in which non-bank funding can be put into an economic structure so that the small and medium-sized enterprises have an avenue in which to get funding. It is something we are not good at but I know we are trying to improve on it. I compliment the Department of Finance on its SME credit and funding newsletter, of which there have been three. They contain a lot of information but when one speaks to small and medium-sized enterprises, they do not know about the information available on non-bank funding.

Another issue which has not had the focus required in terms of small and medium-sized enterprises, is rates. Rates are having a detrimental impact on small businesses. This was not an issue in the past when these businesses were more profitable and they were able to pay their rates. Now the margins for many small businesses are being squeezed and they have great difficulty paying rates, which are not profit-driven. I accept they cannot be profit-driven because rates are also being paid by some of the very large companies. I am told that in County Wexford, the largest ratepayer is Tesco. I am not here to advocate that Tesco in Wexford gets a break of any nature in what it is paying, or any other Tesco for that matter. What I am saying is that smaller businesses employing one to five staff are badly in need of something original and inventive in regard to rates. It is a criticism in that I am pointing out that we have not looked at this issue in an original and inventive way, which we should do.

I am reading Roy Jenkins's biography of Churchill. When Churchill became Chancellor of the Exchequer, he got rid of all rates within six months. The rates structure in place dates back to the 19th century and is based on the square footage of a business and the valuation of same. It is out of date at this stage. As I said, I am not trying to give companies such as Intel, for example, that has spent €5 billion in the past number of years, which is really huge expenditure, a tax break. It is about giving the guy in the corner shop whose margin is tight and profits are down an opportunity for a tax break of some nature, and rates are a tax.

The last calculation I saw was that the rate collection via the local authorities was in the region of €1 billion. I do not have the staff to analyse the really large businesses, such as Apple, Google, Intel, Tesco and Dunnes Stores, and how much is paid by such businesses. However, those very large employers have the capacity to pay more but, through their very efficient tax lawyers, they are paying less than they should. I posed the question as to whether doing the analysis based on corporation tax should be reviewed. The answer I got back was that it would not be reviewed, which I accept. However, this is a method by which those very large employers could pay more. The additional amount they pay should be given to the smaller ratepayers. It is something at which we should look in an original and inventive way as these businesses are stretched. I refer to those small shops which have a post office, a small deli counter and a little bit of hardware, which are very badly stretched.

I cannot emphasise enough that this rebalancing could protect jobs in every one of those businesses the way the jobs in Elverys were protected and additional jobs could be created. We have not taken the opportunity to do this. Will the Minister of State conduct that analysis for the House? I do not know how many hundreds of millions of euro are paid by large employers. He said that 2% of all employment is provided by companies with more than 250 staff. How much is paid by them? If we are intent on protecting SMEs, which encompass post offices, small corner shops and so on, we need to do something on rates because, to date, nothing has been done.