Deirdre Clune (Cork South Central, Fine Gael)

That just underlines the difficulties that are out there for small businesses.

The Government is not helping in other areas. The cost of doing business here is high, as it is an expensive country in which to operate. An increase in commercial rates was announced last night in Dublin, which will affect small firms. I served with the Minister of State on Cork City Council. Coming up to the debate on the Estimates, we always needed to make an effort not to increase commercial rates, because it was seen to be the soft option, especially when no money was coming from the Government and we did not want to increase charges on ordinary citizens. In recent years, the rate has not increased beyond the level of inflation, but inflation is set to be reduced considerably, so the proposed increase will have a major effect on businesses.

The cost of electricity and gas has gone up since September. Nothing has been done to provide competition in the energy sector that would reduce charges. We also have water charges and a VAT increase of 0.5%, at a time when we are trying to encourage consumer activity. I appeal to the Minister to recognise the problems to which I refer. I hope this debate will bring home to the Government the serious difficulties and pressures facing small and medium enterprises in this country and I urge the Minister to adopt the very practical and worthwhile proposals before the House this evening.

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