Dr. Tom Healy:

A Chathaoirligh agus a Sheanadóirí, go raibh maith agaibh as an deis seo chun labhairt libh. I want to make three points in this presentation, which is a summary of many other points made in our written submission. The first is that SMEs have been a huge success in weathering the storm of the downturn. Many went under; many just about survived at huge personal and family cost, as was mentioned by Senator Ó Céidigh earlier. The second point, reflected in previous comments, is that we ought not to be complacent. The domestic enterprise sector, particularly SMEs, is vulnerable, and the performance is not what it could be relative to other northern and similar European countries. I refer to performance in terms of productivity and global market share. The third point is there is scope for many different approaches and many different forms of ownership. That can include partnerships involving voluntary, for-profit and State involvement, including municipal enterprises and various different forms of entrepreneurship.

I will touch on several policy points or recommendations that ought to be considered. The first comment by Mr. David Walsh from Netwatch was that personal risk and the punitive terms sometimes exacted by the banks from people setting up enterprises are real barriers to entrepreneurship. I would like to suggest that an enhanced social insurance arrangement for all the self-employed would provide a safety net, a stronger protection against loss of income or business failure. This could help entrepreneurs to fail and start again and not to be inhibited by the enormous personal costs involved in businesses that do not succeed.

The second point I would like to make is that we have a lot to learn from other European countries, particularly Germany. I hope we will hear a little bit more in the next session about the role of different regional banks in funding small and medium-sized enterprises. In the context of Brexit there is an opportunity for the British and Irish Governments, the European authorities and the European Investment Bank to consider an investment vehicle that could not only lend to businesses in Northern Ireland and the Republic of Ireland, but could also provide information and support services, working with Enterprise Ireland and Invest Northern Ireland.

A third policy point to which I wish to refer is the importance of devolution or delegation of power from the centre. The local enterprise offices could play a much stronger role in identifying supply linkages and opportunities for SMEs to develop better and stronger links with larger companies and multinationals.

A fourth point concerns the mix of different ownership types. I will mention the huge role of community co-operatives in generating electricity in Denmark and providing power to the national grid.

This was part of a carefully crafted strategy over three decades that weaned Denmark from its dependence on fossil fuel imports. We are 85% dependent on fossil fuel imports and we must radically change that. Small and medium-sized enterprises, including possibly community co-operatives and other joint efforts involving equity holdings, for example, by investment banks and by public utilities, could be effective in making that transition to a zero-carbon economy.

The final policy point is the role of education and training. It appears from the data on workforce and management skills in SMEs in both the Republic and the North that there is a deficit. That must be part of a long-term plan involving apprenticeship training and a lifelong learning culture that is embedded in the way institutions of education and learning link in with enterprises at a local level, creating pathways of lifelong learning and upskilling and retraining members of the workforce. In the context of Brexit it is clear that inevitably there will be a huge loss of jobs in some sectors and regions. We must work on replacing those jobs in new markets, new enterprises or new lines of activity.

Míle buíochas as an ócáid seo. Mar athchoimre, is léir go bhfuil dúshlán mór again ó thaobh na timpeallachta agus Breatimeachta de agus tá dualgas orainn an béim a chur ar fhiontraíocht dúchasacha atá in ann dul i ngleic leis na baic mór agus na comhlachtaí móra ar leibhéal idirnáisiúnta.