Dáil debates

Tuesday, 21 February 2006

8:00 pm

Photo of John PerryJohn Perry (Sligo-Leitrim, Fine Gael)

I thank Deputy Breen for sharing time. This is an important motion as it deals with sustainable employment and the issues mentioned by Deputy Breen, such as the high costs of maintaining jobs in light of recent job loses. Last week in Sligo, 91 jobs were lost at Saehan Media Ireland. Prior to that 67 jobs were lost at Kerry Foods, 120 were lost at Tractech a month ago and 500 jobs were lost at Hospira. The successful Donegal firm, Magee, closed last week with the loss of 60 jobs. While we have a successful economy, geared on growth within the economy, one must consider the cost to companies of maintaining employment here.

I am of the opinion that the key investment for any company is personnel. Any company which does not fully realise that does not operate its business efficiently. As Deputy Breen stated clearly, in considering our competitiveness within Europe we have lost sight of the customer when it comes to value for money. We all hear about large gross salaries. One must consider the amount of money taken out of the economy indirectly through PAYE, PRSI and, as we saw in the Irish Ferries case, reflagging. The derogation that existed for seafarers was mentioned previously. It is regrettable it was not in place prior to the job losses at Irish Ferries. If it had been in place the loss of €20 million which it would have meant for the company may have saved the possibility of alternative employment.

One must consider the growth in the economy. The issues this motion deals with, including statutory rates of pay with the minimum wage limitation, the hours' work to which the Minister of State alluded, health and safety provisions, statutory redundancy and carer, maternity and adoptive leave are all equally important in any company which invests in good staff. We should promote the growth of the services sector, including retail services, through the IT colleges. Regrettably, it is not emphasised in educational institutions. One must consider how the economy is being driven and the growth in tourism. Parents' perception of the tourism sector is of summer jobs and it is deemed to be only a "filler".

Lifelong learning is important in light of the job losses in many areas. People should have the opportunity to avail of lifelong learning and courses should be grant-aided. Working people should have an opportunity to upskill. The job losses in Sligo mean a great deal of upskilling must now take place there. Within certain companies, people have been given the opportunity to take part in upskilling programmes. It gives people several options and is good for personnel. We hear about job announcements. However, people who have worked in the same company for 20 years and who have lost their jobs will not necessarily get these new jobs.

I am critical of the lack of funding for small companies. The collective budget for the 26 enterprise boards throughout the State is approximately €25 million. In Sligo the budget is approximately €1 million. The definition of SME in Ireland is different from the European definition. The level of jobs and supports given to small companies is absolutely deplorable. Any company employing less than ten people does not receive any assistance. Companies in the services sector receive nothing. Creators of manufacturing jobs receive little and are referred to Enterprise Ireland. Foreign investment companies are referred to IDA Ireland.

It is regrettable that the small companies which are the backbone of this economy receive nothing. The people involved work a 40-hour weekend, not a 40 hour week. The proprietor takes all the risk and gains little of the profit. The definition of a small manufacturing company must be examined. To grow our economy, huge encouragement should be given to people establishing their own enterprises. Regrettably, few grants are given to small companies. I hope the Minister of State is listening to me. It is important that small companies are established in every county, such as Clare and Sligo.

I am sure the Minister of State will agree that the main emphasis is on foreign companies coming to Ireland. More support should be given to indigenous businesses in each county, which have done a business plan, a feasibility study and a comprehensive review of how the jobs created can be sustained. The longevity in business of a small company given that critical start is more sustainable than foreign companies which move to Malaysia or Mexico where the cost bases are considerably cheaper.

It is understandable that people examine the bottom line. Business is void of sentiment and these directors will take what they get here while they can get it. When the bottom line is questionable, they go to an economy where the conditions of employment are minimal, with no employment rights and where people will work for a fraction of the salary. To grow Ireland's economy, we must consider the small companies in every village in every town in every county.

The emphasis is on the large business parks. Enterprise Ireland will give a company ten reasons that it cannot give it money. IDA Ireland will give the same reasons, as will the enterprise boards. People decide not to go near these organisations because it is all about red tape, such as feasibility studies. Training sectors and colleges should emphasise the importance of self-starters in the services sector, hotels, the retail trade, the business community, the caring sector and nursing homes. From a small acorn the large oak grows. The Government has been anti-enterprise. While it supports the big guru coming in, when it comes to the creation of small companies, very little is given.

Deputy Breen clearly stated the Fine Gael position on this in an effective manner. I am fully supportive of many aspects of this motion. However, membership of a trade union should not be mandatory. It should be optional, and people have that option at present. I compliment Sinn Féin on this motion.

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