Oireachtas Joint and Select Committees

Tuesday, 16 April 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Impact of Black Market on Small Businesses: Discussion

2:10 pm

Photo of Michael MullinsMichael Mullins (Fine Gael) | Oireachtas source

I thank our three witnesses for the concise and well-presented cases they have made. In regard to the public awareness campaign I believe people are now much less tolerant of abuses of the social welfare system and of people doing things that cost the taxpayer money. I firmly believe a well-targeted public awareness campaign would bring many people who decide to go straight into a legitimate business operation. Mr. Fielding really hit the nail on the head when he pointed out that in order for the black economy to thrive, as well as the seller there must be somebody who buys. Obviously people can be prosecuted if they are in receipt of stolen goods but there should be other penalties. We must look at having a situation where people will be penalised if they knowingly purchase illegal and illicit goods such as laundered diesel, smuggled cigarettes, counterfeit branded clothing, etc. In addition, we need to look at what is happening at some of the Sunday markets where so much illegal and illicit material is being peddled throughout rural Ireland, Sunday after Sunday, as I am well aware.

I believe it was Mr. Fielding who raised the point about incentives to homeowners who use regulated and registered contractors. I firmly believe we will never get the economy moving again unless we have a fair level of activity within the building industry. At some stage in the near future I would love to see us having a scheme for house refurbishment or the upgrading of energy efficient homes whereby people would receive some level of grant incentive on condition the work is done by registered contractors. That is the only way. We must do something to bring some of these people into the legitimate area of activity.

I refer to commercial vehicles. People are able to tax their trucks and vans at a much lower rate on the basis they are being used for commercial purposes. All they have to do is get a garda to sign a form indicating this is the case. However, they should have to prove they are tax-compliant and up to date with Revenue in order to qualify for the lower level of taxation on commercial vehicles. The whole area of penalties and the sentencing regime must also be examined. There is an acceptance that people get very small penalties in our courts for quite significant infringements.

I am not sure how the amnesty would work but would like to see a situation whereby people who have started up small businesses in the black economy would have an opportunity to register, within a short period, and become legal. We all hear on a daily and weekly basis that legitimate businesses just cannot compete with some of these guys who seem to be operating with impunity.

I have reason to believe that in recent times the Revenue Commissioners are more being proactive in making contact with persons who may be operating small businesses from the back of houses, for example. I assume Revenue is receiving tip-offs from the general public. A heightening of the public awareness campaign would result in some of these illegal operators being put out of business. However, the really big operators are trafficking cigarettes and diesel and other counterfeit goods. While there has been significant progress in the Border area, including the smashing of laundering activities, the people concerned seem to be able to get back into business quickly. I await the comments of the delegation.

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