John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I welcome this very interesting debate. I welcome Senator White's comments on my Department’s support for entrepreneurship. The entrepreneurship forum report to which she alluded is a very good document, which contains many elements we can implement in the one-stop shop for business that will go live in mid-April. They are cost-effective but will provide support. The report represents the views of entrepreneurs in Ireland after wide consultation. It is important that it is not shelved but that we act on it. We have also to overcome many barriers to grow and develop the ideas to create enterprises.

Senator White’s point about women in business is very important too. She referred to the success of Julie Sinnamon and Jean O’Sullivan in Enterprise Ireland and mentioned Bord Bia. Her own success is a good example. I was recently at a big event at Enterprise Ireland where there was a strong emphasis on women in business. Enterprise Ireland’s sponsorship of entrepreneurship in second level schools is very successful. We are hoping to upskill and develop that further. Senator White’s points are very well made and she speaks with knowledge of business. We are considering the talent of women in business through Enterprise Ireland and Bord Bia.

In response to Senator Michael D’Arcy, the advisory group I chair is working on priority taxation issues, which my Department will submit for budget 2015. There is consultation on that now and the budget is being compiled to encourage enterprise. Budget 2014 focused on SMEs and entrepreneurship and I hope this focus will continue. My Department is working on new banking finance and the action plan for jobs refers to several initiatives. We wish to continue to work with all relevant stakeholders and the Department of Finance to ensure opportunities in areas such as crowd-funding are available to SMEs in Ireland.

Rates are an important point for SMEs. The Department of the Environment, Community and Local Government is conducting an overview of policy on them. We have had discussions with the Department to explain the need for change, the fact that valuations date back to 1998 and the pressures this puts on small business. The advisory group I chair has worked in this area and I will continue to liaise with the Department of the Environment, Heritage and Local Government. There will be new local enterprise offices, LEOs, and the amalgamation of county and town councils will give the county manager much more discretion when councillors are appointed in June. If rates were dropped by 1% there could be a derogation given on vacant units. That power of devolved government will be very relevant in Sligo and Leitrim where the councillors will decide with the new CEO of the county that they can consider a derogation to encourage occupation of vacant units. We are very conscious of the importance of encouraging the revitalisation of town and village centres.

Senator Michael D'Arcy made the point relating to confidence and credit, and there is the issue of confidence to spend in a local community. The point about examinership was very well made and the best example has been what happened with Elvery's this week. With regard to funding for small and medium enterprises, there are simplified loan applications. We met representatives of Bank of Ireland, AIB and Ulster Bank on Monday morning, and the simplified application form is applicable to the pillar banks. Many people make a discretionary inquiry but they would be better off making a formal application. The Credit Review Office has overturned every second loan refusal directed to the office. I attended an event in Cork yesterday which had the Credit Review Office and up to 24 State agencies affecting business present. Any loan application from €1,000 to €3 million can be reviewed, so people should go through the procedures. The banks have indicated they are open for business so we encourage people to work in the area.

Senator Quinn commented that the small and medium enterprise, SME, network could become a talking shop. The SME envoy, Mr. Daniel Calleja, is driven by the agenda of SMEs, and the issue has been to the forefront for the EU Presidency for a number of years. There are 23 million SMEs across Europe and this network delivers on the formulation of ideas and sharing of best practice. The best practice across 28 member states is invaluable, and when priority issues are identified, the network can request the issues to be progressed to formal Council meetings. It is an important point.

I note the Senator's comments regarding company formations. Ireland performs very well in this regard but there is always scope for progress, and I am very happy to bring up the point again. The Senator indicated that there could be a simplification of procedures for the Companies Registration Office. There are 159 different licences across the economy but we will establish a single licensing portal for retail trades. There are 15 agencies and 24 licences for operating a supermarket or hotel. A process will go to public tender through EU offices and we hope to roll it out after that. We will consider the point about the Companies Registration Office.

I agree with the Senator's comments about ensuring small and medium enterprises maximise opportunities in areas such as crowd funding or cloud computing. We are very active in this area and the Action Plan for Jobs and Departments are supporting and promoting initiatives for SMEs in Ireland. The Senator has raised an important issue regarding the reduction of the administrative burden for business. There is also the matter of apprenticeships and training young people for business.

Senator Gilroy mentioned the disconnect between institutions and I agree with the assessment of the success of the SME envoy network. He mentioned that the SME sector in Ireland is worth over €90 billion and that banks refuse up to 54% of applications in the area. I strongly suggest that people make direct applications and appeal decisions if the loan is refused in the bank. The Senator mentioned Mr. Morgan Kelly and the initiative is very much being taken on by the Minister for Finance, Deputy Noonan, based on evaluation of the restructuring of SME debt. A Cabinet committee is to be set up under the Minister, Deputy Noonan, along with the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, in that regard. We must examine the issue of banks refusing to loan but there is money available and banks have indicated they are meeting targets.

Senator Mooney commented on the membership of the SME network. I agree there are some very skilled people on it and some representatives of trade bodies also attend the meetings, so it is not dominated by politicians or civil servants. All the retail and business associations across Europe attend the meetings and contribute, so it is an inclusive membership. There was an interesting point regarding the change of culture of education in schools, which is important. The Senator also mentioned trade agencies and Mr. Kelly's report, and the Minister for Finance is working on it. The Senator also mentioned the importance of local communities. There is a matter of a one-stop shop for business in every county and that is relevant in identifying an appreciation of business in the community.

Senator Mullins noted the issue of costs and rates, as well as the black economy, and that is an area which the Government is considering. We have produced a report on the matter and we are examining the trafficking of illicit goods such as cigarettes, alcohol and other products. The Government is determined to promote entrepreneurship in schools, and the knowledge that is out there is evident from the young entrepreneurs going to the Young Scientist event in Dublin.

I thank Senators for their positive contribution. Senator Cullinane mentioned red tape and the regulatory burden on business. I know he has been in Brussels and met people in the SME envoy network. The success of Europe is the 23 million small and medium enterprises and within that the 200,000 Irish companies, employing 700,000. There must be meaningful direct access to credit and we must cut red tape so as to support enterprise. Local government must work with enterprise and trade and there should be a joined up network with Enterprise Ireland. We must create jobs and confidence in the Irish economy.

We have met representatives of the banks and discussed the relevant issues. The issue of procurement was mentioned and there is a clear policy in that regard. There is a national procurement office and we are engaging with small and medium enterprises, particularly to see how directives can be interpreted to include the clustering of small companies to avail of over €8 billion in procurement.

I hope I have not left out anybody. There has been mention of local economies and local enterprise units. The local enterprise offices have been rolled out and they will be very important in bringing mentoring and banking supports. A new tool is being launched allowing a potential business owner to figure out what is required to establish a business. Legacy debt is another problem that is being addressed by the Cabinet sub-committee on mortgage arrears and credit availability, and progress is being made in that regard.

It is essential this work is continued, to ensure viable small businesses can look to the future and grow their businesses without being crippled by legacy debt.

I thank Senators for their positive contributions to our discussion today. The SME network provides an important forum for member states to share best practice, prioritise issues of relevance to SMEs and ensure the small business agenda remains at the forefront of EU policy. The development of the LEOs is important and we will have a LEO in every county in Ireland with a service level agreement to deliver a targeted suite of supports to SMEs in the local economy. I agree with the Senator's comments regarding regulations. Common sense is the primary element in policy making in this regard. Senator Mooney knows only too well that we are encouraging enterprise in every village and town. I believe that with the involvement of local government and the newly elected councils in June we will have a new forum which will have a big impact on the re-emergence and retention of jobs. Many ideas have come forward from the Government in regard to the issues of viability and access to credit and banks, such as the Credit Review Office, the microfinance fund and loan guarantees and better procurement.

The Government understands and respects the concerns of small businesses and will provide a service to small companies as these are the backbone of our €90 billion economy. The small business sector is the driver of this engine. As the Taoiseach has said repeatedly, this is the year of jobs. If we have 200,000 companies in Ireland, one job created in every company would dramatically reduce unemployment. We have our Intreo offices, the back to work scheme and apprenticeship schemes giving significant encouragement to businesses to retain jobs. These schemes provide support and acknowledgement of the costs of doing business.

I am conscious of the issue of commercial rates, but I am confident that the Minister for the Environment, Community and Local Government, Deputy Hogan, will introduce a situation similar to that in Northern Ireland, and that we will have tiered rates. Rates have been reduced in some areas. Ultimately, it is the customers who pay the rates as these are part of the stacked up costs of business and if one is working on a net margin of 2% or 3%, the rates are built into the cost base. Business people who do not incorporate rates into their margins end up with them being a cost of doing business. It is the job of the Government to ensure it gives encouragement to use vacant units and to encourage a fair system.