Michael Moynihan (Cork North West, Fianna Fail)

Businesses are subject to a significant amount of regulation and it is small businesses which are most affected. Following the 2007 general election, the Joint Committee on Economic Regulatory Affairs was established to regulate the regulators. The difficulty is the large volume of regulation constantly coming through from all Departments and from the European Commission. It seems no consideration is being given to the effect this is having on small businesses and the enterprise community. This did not present a major problem as long as the Celtic tiger was roaring and businesses were operating at full tilt without time to think about the costs arising from this regulation. In the United Kingdom, there is a dedicated Department for Business, Enterprise and Regulatory Reform, and legislation is being drafted to ensure that every item of legislation is vetted for its impact on the particular sector it will regulate.

In this State, regulation has developed over the years without any attempt at overview or consolidation. The Department of the Taoiseach commenced a process last year with a view to reducing regulation by some 20%. Progress is ongoing in this regard and departmental representatives have discussed this at a meeting of the Joint Committee on Economic Regulatory Affairs. In light of the downturn in the economy and the associated challenges faced by all sectors of industry, particularly small and medium enterprises, we should ensure that any legislation which comes before the House is properly vetted so that businesses are not stifled by excessive regulation.

The agricultural sector experienced a major crisis in the mid-1990s in regard to BSE and brucellosis, leading to serious difficulties for the dairy industry and the suckler herd. As a result of the excellent work done by the Department of Agriculture, Fisheries and Food and the farming community, that has been brought under control. We are now almost brucellosis-free and have overcome the BSE crisis. However, all the additional staff recruited by the Department at that time remain in place. When a particular situation has been successfully monitored and resolved, is there a need to retain the associated additional staff? This is an important consideration given the need to ensure an efficient public service.

I welcome the changes to the income levy. The higher income earners are certainly being targeted. This is something the vast majority of people would welcome, and is something that we must examine. There is a section of middle income people out there who seem to be paying for everything, yet who also contribute the most to society. They look at the high rollers and those who seem to be getting everything for nothing.

This is a fair and equitable Bill and should be the cornerstone to make sure those that can pay do so. As the economy tightens, and indications are that it will be very difficult in 2009, we will have to mindful of those who lose their jobs and are forced to take social welfare payments. This is a global financial crisis, and is probably the worst crisis since the Wall Street crash in 1929. The Government is working hard to make sure we limit its effects. The difference between now and 1929 is that governments are intervening this time.

We saw banks make mistakes 30 years ago with the farming community, when they handed out credit willy-nilly. Maybe it is time for us to rethink the whole banking sector and the whole banking system in this country, with a national bank that is not a semi-State body. We need a banking system on which small and medium sized firms can depend. The mistakes that were made recently and those that were made in the late 1970s and early 1980s should never happen again.

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