Oireachtas Joint and Select Committees

Tuesday, 27 January 2015

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Entrepreneurship and Related Issues: Irish Exporters Association

1:35 pm

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

That was a very powerful presentation from which I have learnt a lot. My first question is on general exports. I have read that Denmark has ten times more exporting companies, both FDI and local, than Ireland has even though it has a similar economy. I ask the witnesses to cast some light on that.

The witnesses are right that FDI is given a competitive advantage in this State over indigenous businesses.

That is a policy-driven outcome and has not happened by accident.

I agree with Mr. Kelly that risk aversion is rewarded in this country to a certain extent through the lack of social protection for sole traders, especially. Most people who evolve as entrepreneurs do so having started out as sole traders, who are even more exposed. Has the Government in discussions with the IEA given a reason for not creating the safety net for the self-employed that PAYE workers have? I regularly meet people in my clinics who say they would not want to be self-employed again because they were toasted previously and there is nothing for them.

With regard to child care, can Ms Byrne point to an EU model? Would this involve the provision of 24 hour care? Child care is provided 24 hours a day in some states and if people work shifts or difficult hours, they can avail of this.

Capital gains tax is an important issue for self-employed people. There are two types - employment-related and speculation-related. Can they be separated in order that the Government could promote the lower employment-related tax rate?

One of the major arguments is that the State is incentivising individuals to go down the technology route. A reason for this is the major staff shortages worldwide in technology companies. Ireland can compete in this area because other countries cannot provide people for those roles. Traditionally this was one of the reasons we incentivised students to progress through technology. I acknowledge Mr. Kelly's comments about a points advantage for, say, English but while that benefits the individuals who receive the education, it may not necessarily lead to the challenges faced by the IDA when technology jobs are attracted to the country being addressed.

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