Oireachtas Joint and Select Committees

Wednesday, 5 October 2022

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Update on Quarters 1 and 2: Discussion

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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I refer to the Minister's comment about optimism. I am certainly an optimist. If I was not, I would not have stood for election in national politics in the hope that I might influence Government policy. I also remind the Minister that I have only been a public servant for the past three years. In my previous career, I was self-employed and worked in the private sector. Yes, I am an optimist but in being an optimist, we cannot wish our problems away either.

On Senator Ahearn's comments about the N24, I would include the N25 in that. I would also like to understand the status of those projects in terms of the national development plan. I am around long enough to remember the promise made to Waterford Institute of Technology, as it was then, in 2009 for an engineering building. That has yet to be delivered and was supposed to be part of the national plan.

I raise the concerns in the SME space, a few of which I will highlight. One concern is the indebtedness of companies that have availed of the warehousing debt scheme. Some of them have started making payments again since last February or March. They may have been slow in getting back on the programme and, if so, they are not tax compliant now and are, therefore, outside the supports the Department is proposing to support SMEs. This issue needs to be looked at. There are valuable and viable businesses involved but they have to be properly supported.

The 40% energy support will not be adequate to cover some businesses. It should be looked at in a more sector-specific way rather than being applied across the board at 40%, and that needs to be done immediately. I ask the Minister to immediately convene an emergency task force to address the challenges facing the SME sector. In the next three to four months, as the Minister will be aware from the small company administrative rescue process, SCARP, businesses will get into significant financial distress very quickly.

I will outline a number of measures that could be introduced. SMEs should be able to access business management consultancy through local enterprise offices to help them with productivity, renewable efficiencies and changing their product suite, portfolio and manufacturing practices. Unfortunately, when people have a small or even a medium-sized business, they are so involved in what is going on that sometimes outside eyes are far better in that regard.

We must look at State procurement again. A large amount of State procurement in this country does not do anything. I know one might say we cannot favour indigenous companies but actually we can. When one looks at what happens in Germany and France compared with our procurement process and the level of participation of our indigenous businesses, there is a gulf between them. That needs to be looked at.

In the agrifood sector, in particular, there are major challenges in food manufacturing. These companies use heating and cooling to manufacture products and are massive energy consumers. They have to be treated in a special way.

We need to look at the dominance of the supermarket sector in this country. It is killing small suppliers. There is market dominance almost bordering on anti-competitive practices. We have to find a way to start breaking these cartels. In Dungarvan in my county there is another application by a major multinational supermarket to locate in a town of 10,000 people which is already serviced by four large supermarket chains. This makes no sense. I am not saying we should obstruct planning but we have to have a policy on this because we are killing indigenous small business in market towns. This is why we see towns in the middle of the country with shops and houses boarded up. We are trying to regenerate the rural economy.

I have asked the Tánaiste a number of times if a representative of ISME can be appointed to the LEEF. Deputy Stanton spoke about the family business network. ISME did significant work with the Department, particularly in the area of insurance reform. I know IBEC and the Small Firms Association are represented but that is not enough. IBEC has a far larger portfolio in regard to large businesses. I would like to see a dedicated small business network representative on the LEEF, and I believe that should be ISME. Will the Minister consider that?