Feargal Quinn (Independent) | Oireachtas source

I welcome the Minister of State and I am delighted he is here again. I am also delighted with the steps he has taken and to hear about what is going on. It was also interesting to hear Senator Mary White's story and experiences, particularly with Lir Chocolates.

I fear that the envoy network will become a talking shop. I was president of EuroCommerce, which represents the retail, wholesale and distribution trade, for three years and a member for six years. One of the rules I introduced was that at each board meeting we would take a break and every member had to come up with three initiatives that had been introduced in their country during the previous year. The Minister of State might make a similar proposal at the next envoy meeting whereby each representative would come up with ten initiatives they have been taken in the previous five years that have helped SMEs to thrive. On that basis, 28 countries with ten ideas would mean 280 ideas would be put forward. If we picked half a dozen or a dozen of them, perhaps we could do something with them. That would be of great benefit.

I was impressed by the proposal for a single portal for SME retail licences. I had been talking about having one procedure on one sheet of paper or better still on the Internet to set up a business. I would love the Minister of State to respond to this tangible idea to help create business. According to the World Bank's cost of doing business report, in 2014, it takes four procedures and as long as ten days to start a business in Ireland. I acknowledge the Minister of State is doing his best to change that. I visited Panama five or six years ago where a target of only seven hours to start a new business had been set. I do not know whether the target was reached but Singapore and New Zealand are doing well in this regard. Four procedures and ten days is too long to set up a business and it is a disincentive to doing so. If the process is made simpler, quicker and easier, more people will set up a business, whether they succeed or fail. It takes one procedure and half a day to set up a business at a cost of €100 in New Zealand. That should be our target. It should be possible to set up a business in Ireland with one procedure in one day at a low cost.

The four procedures to set up a company here are: first, the founder of a company swears before a Commissioner of Oaths; second, file necessary materials with the Companies Registration Office; third, get a company seal; and, fourth, register for corporation tax, social insurance, PAYE, PRSI and VAT with the Revenue. These procedures could be dealt with on one sheet of paper in one location for a maximum once-off fee of, say, €50. If that was one of the Minister of State's ten suggestions at the envoy meeting, many other countries would jump at it. This would make it very easy for a person to set up a business and to give it a try. New Zealand has done it and we can do it as well. Let us at least set a target of 2016 to do this. Would the Minister of State be willing to set such a target?

The World Bank report highlighted that Ireland still has a problem when it comes to Sunday payments. Business owners say this is a massive barrier to them taking on employees or expanding. The Government has taken steps in this direction. Will it ever be tackled to the extent of solving the problem?

Another issue is encouraging SMEs to use technology, particularly crowdfunding. This has been recognised as a problem at EU level with many SMEs scared to go down that route. I recall visiting what looked like a little shop in Estonia and upstairs the business owner had loads of people working on the Internet who were trading around Europe. We would be able to do something in this regard if those barriers were reduced.

Businesses can benefit from cloud-based communications services such as Voice over Internet Protocol, VOIP, calls to ensure good co-operation with clients and suppliers at home and abroad. At the same time, such technology would reduce costs for a huge range of small businesses. How can small businesses be made aware of such opportunities? The Minister of State should adopt more best practice from Europe regarding such technology and push it here through tax breaks and so on. We should use the resources available in the SME envoy network.

Access to credit is a crucial issue. Banks need to be analysed much more closely to make suer they give credit to viable businesses. I am not sure if enough is being done to monitor whether loans are getting to the right SMEs. I applaud the Government for setting up several microfinance schemes but for one reason or another, there has not been a large take-up and we must do something about that. Much more needs to be done to make SMEs aware of such credit. We need to encourage them to look beyond banks and consider crowdfunding. Linked Finance is a great example. I am involved in the company and, therefore, I declare my interest in it. Businesses have to prove to customers and supporters online that they are worthy of credit. It is interesting to observe how this works. Unfortunately, many SMEs are not aware of the amazing credit opportunities available through Linked Finance. It provides simple and straightforward access to finance. If a butcher decides to build a new cold room at a cost of €20,000, he can let it be known through the company. It, in turn, lets people know that he is interested in doing this. They offer him loans and he is able to negotiate an interest rate with them. These loans are usually €100. If 200 people advance a loan of €100, they feel like they have ownership of the shop, even though they do not, and they will give the butcher business as well. There are win-win scenarios to be found in this area. Crowdfunding provides simple, straightforward access to finance, which is not being used nearly enough. It could be used much more in many different ways.

Britain is introducing a scheme to remove barriers. The proposal is that the government makes a pledge to remove a piece of legislation for every piece of legislation it introduces that affects business.

I would like to raise a specific example I have raised before. The United Kingdom introduced a system called the "one-in, one-out" system, whereby if the Government introduced one measure that affected businesses, it had to remove another. Our system is such that the burden of red tape grows every time we suggest new legislation. I am as guilty as anybody else in this regard. Every time one introduces new legislation, one should look back at old Acts and remove an unnecessary measure, thus reducing the burden. That is another step that could take place.

The Minister of State's heart is in the right place and he is doing the right thing. The envoy and network comprise a great idea and I am delighted the Minister of State is part of it.