Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Vice Chairman is correct that larger companies tend to have either their own pools of finance that they can draw upon or access to credit at different rates from those offered to small companies. It is worth acknowledging that the Commission and the European Investment Bank presented their report in June confirming they are working closely with the European Central Bank to develop a strategy to alleviate business funding constraints, because a well-functioning banking market is capable of meeting the needs of small and medium size companies. Work is taking place to look at revitalising and strengthening that part of the banking sector, and I acknowledge the work of the Department of Finance in doing that. We see Ireland as a strong pilot location for that kind of work to take place.

What I was acknowledging in part of the answer I gave to the Vice Chairman is that, along with him, I will continue to acknowledge the important role of national government and the work it does to develop the type of culture about which he spoke. I saw a fantastic example of that recently. The amazingly successful development of the new microchip about which Deputy Byrne spoke took place in Deputy Durkan's county. Deputy Byrne made reference to the Digital Hub, which is off Thomas Street in Dublin South Central. Extraordinary work is taking place in each of our communities and constituencies. The Deputy made reference to the bafflement his phone occasionally offers him. I struggle sometimes with the difficulties that arise in technology; I see Deputy Durkan is manfully dealing with the iPad at the moment. There are people in our country doing work that would have been unthinkable even a few years ago in terms of technological sophistication.

I visited an incubation centre in the Docklands, in my constituency, last week and saw the operations of many young business there. One business was set up less than three years ago but is already entering the third European market and employing ten people. They are the kinds of business that will prosper the most from the issues about which Deputy Murphy spoke.

A difficulty we face frequently here, and within Europe, which perhaps differs slightly from what some colleagues said, is the issue of scalability. From a start-up point of view, many of our larger capitals are unbelievably fertile in terms of new businesses being set up. They can increase in size from small to medium with the existing support, but how do they get from medium to very big in terms of size? The scalability aspect is a real challenge. That is why the work being done on having a fully functioning digital single market is so important, because it provides the scale within the market to allow that to take place. I look forward to updating the committee on the work that will take place in future general Council meetings.