Oireachtas Joint and Select Committees

Wednesday, 16 November 2022

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Issues Facing Small Businesses: Discussion

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent) | Oireachtas source

I welcome and thank everybody, including those online, for attending the meeting. I echo Deputy Stanton on recurring meetings, except I think they should happen every quarter. I have been on the record for some time about the challenges facing the SME space and have stated in the committee that the SME sector is treated as a second-class citizen in our economy. We are all about FDI and the public sector but we do not spend enough time dealing with the small businesses employing over 1 million people in this country. There are significant headwinds affecting the SME community at the moment.

I will group issues together because we could have three meetings on what we are talking about. On energy bills, I note and support the request to backdate that to March. The Tánaiste appeared before the committee some weeks ago and I told him the TBESS would not be adequate to support businesses. Unfortunately, because businesses are not yet falling over, people seem to think the problem is not as great as it is. They do not understand, because they have not run businesses, that business owners will accumulate costs and keep on doing so while trading, before getting to the nuclear option where they suddenly have to decide they cannot go on any more. Then they are into the small companies administrative rescue process, SCARP, administration or liquidation or whatever.

Mr. Jennings asked about ISME being taken onto LEEF. I have asked the Tánaiste in the Dáil and in this committee if that will happen. I have said IBEC does not represent the majority of small businesses in this country any more. It predominantly deals with FDI and the public sector. That needs to happen and the witnesses need to keep on asking for that. I support the idea of a body to help non-exporting businesses and other indigenous businesses. We need that. We have a focus on IDA and Enterprise Ireland, EI, and they do an excellent job in attracting FDI and supporting exporting companies, but we are not doing enough or putting enough money in to support our own. The commission on public expenditure is needed but not for today.

The biggest things that strikes me are, one, wage inflation. It is occurring because of the cost in the economy, the FDI component and being at full employment. That is a problem. Another problem concerns rates and the apathy of local authorities to understand what is happening to businesses. I get so frustrated. I had a man on to me from Bandon yesterday talking about a whole street cut off for the next number of months into the Christmas period because the local authority has decided to do roadworks. These things need to be looked at.

On insurance reform, I tried to bring an amendment, with the support of Deputy O'Reilly, to the Dáil last week on PIAB giving more than one recurring review. Unfortunately, the amendment was not accepted. We accepted the Minister's position but I hope he will make an amendment on that legislation coming into the Seanad in order that we will have more than one recurring review. As Mr. McGrane highlighted, the judicial guidelines are not being adhered to. That is a significant problem.

Another concern is that the shift happening in retail is a consolidation of large multinational business into the sector. Three German multiples are looking for planning permission to add more shops in Galway. In my town of Dungarvan in Waterford, we have four large international retailers and a fifth one is coming in, a British one which is well established already in Waterford city and which will be to the detriment of the retail landscape in a market town like Dungarvan. We have no policy to prejudge, other than arbitrary planning. These things need to be looked at.

In the first instance, we need to get support for energy bills because that is the pre-eminent thing needed for business. We need to get the local authorities engaged and the committee needs to get grouped in with the witnesses' organisations on a recurring basis because the SME sector is the most vulnerable and least supported in this country and has been for some time. Unfortunately, other vested interests are having their way in many cases to the detriment of our indigenous business. That is my rant. I have heard everything. I know exactly where the witnesses are at. I feel for people in this position.

I suggest to the Chairman that we might look to do a report on this aspect of the meeting, even a short report to the Department outlining the concerns. We know what is not working. Mitigating with solar and all of that sounds wonderful but will not happen for anybody for six months. I accept what Deputy Bruton said to the effect that we cannot write a blank cheque but I know nobody can get solar in the country for six months, simple as. You cannot have energy efficiency in a business where you are doing food production and have to heat, cook and freeze. There is only so much you can do. You cannot bring in new technologies. There is no new technology that will reduce fridge costs by 50%. It does not exist anywhere in the world so we have to get real about the difficulties and try to support the witnesses' sectors because they are vital for the health of our country and indigenous people. That is what I am concerned about. I do not have a question; I have a rant. I am sorry to have to give it but I feel for the witnesses' situation.

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