Dara Calleary (Mayo, Fianna Fail)

I am pleased to support the Government amendment at this time of intense pressure for small businesses. I particularly welcome the commitment in the amendment to increases in the allocations to county and city enterprise boards, which have the potential to be the foundation of our economic recovery. There is a case for directing funding away from other less relevant enterprise agencies within the Department to the county enterprise boards, given their successful track record. Their support for and funding of small business has resulted in numerous success stories in recent years, many of which were unheralded. In our rush to attract foreign industry, we sometimes forget the importance of enterprise boards and the support they provide in terms of capital and training to small businesses.

I note the commitment in the amendment to reducing bureaucracy. This commitment must be strengthened. It is time the Oireachtas declared war, for once and for all, on bureaucracy and red tape. As State agencies are merged and subsumed, we must ensure to cut the bureaucracy that goes with them. The Minister should conduct a red tape impact assessment in respect of the interpretation of every Bill that comes from the Oireachtas into the various Departments and their impact on small business.

Both the Minister for Finance, Deputy Brian Lenihan, and the Minister of State, Deputy Kelleher, have spoken about the importance of the Credit Institutions (Financial Support) Act, known as the bank guarantee scheme. This is an opportune time to remind the banking sector that the Oireachtas placed great faith in it in passing that legislation in the manner we did. We have afforded unprecedented support to the banks participating in the scheme, which represented an international first. It is regrettable that, six weeks later, it is becoming increasingly clear that this show of faith on the part of this House and of the people we represent is being thrown back in our faces by some banks, especially in the manner of their treatment of small businesses throughout the State.

All of us in this House have had representations from business people in our areas in regard to the difficulties they are experiencing. Many businesses, some of which have been operating for decades, have had credit facilities that were available to them for many years and which they managed correctly withdrawn without proper notice and without time to avail of alternative facilities. This is being done without any regard for businesses, their employees or the services they provide. Others have been threatened with closure because of outstanding loans even though the relevant banks hold securities over all the owners' assets, both personal and business. This security is insufficient in the face of an apparent obsession with reducing loan books at the expense of small businesses. Many businesses have been notified in recent weeks of substantial increases in their bank fees and charges. It is almost as though the banks are passing the cost of the State guarantee directly on to their small business customers.

I note the initiative announced yesterday by the Royal Bank Of Scotland to freeze overdraft and contract charges. As the mother ship of a banking group in Ireland, I hope the latter will treat small businesses in this State in the same way and that other banks will take heed. It is important that breathing space be given to viable small businesses. We are not pleading for charity cases or for businesses that were managed recklessly. Rather, we are concerned that viable small businesses which have provided important services and employment for many years are treated with respect in these difficult times. The behaviour of some banks in their dealings with small business is akin to corporate bullying. I ask the Minister for Finance, in his ongoing discussions with bank management, to call on them to desist from this type of behaviour, to engage constructively with their customers and to respect the mandate we have indirectly given them to facilitate economic recovery through support for SMEs.

The area of small business under the greatest pressure is the retail sector. The economic downturn is most evident in this sector, which is the one most prone to it. The retail sector can do without the hysterical promotion of shopping outside this jurisdiction, whether across the Border or internationally. RTE, our public broadcasting channel, could not get enough in recent years of shoppers travelling to New York and Boston. Now the obsession is Newry and Enniskillen. This agenda is also being driven by elements in the print media. They are quick to point out the price differentials and the apparent service differentials, but they are slow to point to the job losses that are resulting, the service losses that will result and the impact on small businesses and suppliers. Perhaps if we all started watching UTV or reading British newspapers because they apparently offer better value and choice, these media outlets might reconsider their coverage. Small business is struggling enough without this senseless promotion of shopping outside the jurisdiction.

This week a range of organisations lead by the IFA and the GAA have combined to encourage people to shop locally this Christmas. I add my voice to that campaign and encourage all Members to do the same. The Government can play its part by taking this message on board. I have spoken before in this House about the ridiculous rules regarding pre-qualification and the manner in which SMEs are disqualified from Government business. The Chairman of the Joint Committee on Enterprise, Trade and Employment, Deputy Penrose, recently arranged a presentation by the Irish Printing Federation to a meeting of the committee. Documents sponsored by this Government and made using taxpayers' money are being produced outside the jurisdiction and outside the island. For example, much of the literature provided by the referendum commission during the campaign on the Lisbon treaty referendum was printed in other European states, despite the existence of a vibrant and innovative printing industry in this State. We must urgently review our interpretation of EU tendering rules in order to give SMEs a chance.

The Government amendment reflects the work being done to support SMEs. However, we must take a more urgent approach. I am pleased to support the amendment given the track record of the Government to date.

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