Dáil debates

Thursday, 26 March 2009

Industrial Development Bill 2008 [Seanad]: Second Stage

 

12:00 pm

Photo of Mary O'RourkeMary O'Rourke (Longford-Westmeath, Fianna Fail)

I am glad this Bill is being introduced because although it is purely technical in nature, as the Minister pointed out, it gives us an opportunity to discuss various business matters. The Minister himself did so as did several speakers and that, in itself, is important.

I also welcome that the anomaly regarding grants to small companies in parts of the Border, midland and western, BMW, region has been dealt with by the inclusion of counties Laois, Louth, Westmeath and most of Offaly as designated areas in that region. I am particularly glad to see County Westmeath included.

The Bill shows that various fundings are available now for small companies, or companies geared towards export. That is all very well and admirable but I wish to take up a point mentioned by Deputy Morgan. There are very many small companies for which banks are not loosening their purse strings. People say that politicians do not know what is happening on the ground but we do. Not a Saturday goes by without two or three such companies approaching me. They outline their business which might employ three to five people, is thriving reasonably but needs to get cash to advance. I have a particular business in mind. The owner, a haulage contractor, was subcontracted by a major haulage contractor to make deliveries to all ten Dunnes Stores outlets in the midlands region. The moneys for the work he is doing will come in during mid-April when he will start to get regular payments from the main contractor. However, he must exist until then and the banks have said "No". To carry him from now until mid-April he needs a small amount of bridging money similar to what one gets when buying a house. He has supplied all the accounts, letters from his main contractor, letters from Dunnes Stores, yet he cannot get the bridging finance to enable him to continue. It is a good little industry. He employs some people, works hard himself, drives his trucks day and night. He is at his wits' end.

We were told that the scales had fallen from the banks' eyes but they have been clipped firmly onto their eyes. Recapitalisation has not oiled the purse strings of the banks. Frankly, I am amazed that despite the fact that one speaks up, makes a case for them and goes to the next layer of accountability, the answer is still "no, no, no".

There is another instance of a small joinery works which is doing fine. It may not export but works within its own area of expertise. It, too, needs some bridging finance to continue. I do not take up lame ducks because there is no point in doing so as one only wears oneself out. If one sizes up a situation, sees the books and talks to the people one can recognise who has a chance. It is those who have a chance for whom I have made representations. I am dismayed to find they are neither listened to nor heeded.

People listen to the Taoiseach and other worthy people saying there are funds of €100 million and €50 million, this fund and that one. When statements are made it appears there are funds but when a business tries to avail of a fund it cannot do so. That is of considerable interest and is a matter that IDA and Enterprise Ireland should examine. I shall talk presently about those two bodies.

I wish there were the same emphasis on retaining jobs as there is on the sexy talk of new jobs. Of course, it is great when we get new jobs. In Athlone we have been fortunate to have a most active IDA regional office with most active personnel in it who work day and night to bring in new firms. One of those firms was mentioned in the Minister's speech. That is very good and we are fortunate to be in the middle of Ireland, located at the end of a most wonderful road. One sets off from Dublin and before blinking three times one is in Athlone. The industrialists cannot complain about getting to Athlone and the IDA has built a most magnificent industrial park there. It is not huge but is beautifully laid out, well appointed and nicely landscaped.

Businesses are able to set up in the park in a semi-incubation way and can move to other IDA Ireland facilities as they grow. In the meantime, they can almost immediately begin operating in the hinterland of this excellent industrial park. I am sure other regions have similar facilities.

We have had a hair-raising time recently with a certain large firm which was deciding between cutting staff in its Clonskeagh or Athlone operations. Sadly, the staff in Clonskeagh were let go but the remaining staff in Athlone worry constantly that the call will be made to them someday. I wonder if a unit could be established between the IDA Ireland and Enterprise Ireland to support job retention in advance of redundancy announcements. Is it possible to constantly monitor firms which were welcomed here with State aid and which are pursuing their paths to productivity? I am aware that issues arise in respect of intrusion and interference, but it is too late for a firm to send warning signals one week before it announces losses. A job retention unit would make itself aware of what is likely to happen to a firm rather than waiting to hear the sad news on the local radio station.

Retention should be as strongly emphasised as invention because otherwise we are being somewhat feckless and IDA Ireland will arrive at a worse situation than this year's net loss of 1,200 jobs. That figure is reasonable in the present circumstances but it will increase if attention is not paid to retaining jobs and supporting companies in their ongoing training and product development needs. Aid and support must be available to firms which are struggling to survive.

The downturn has resulted in a reduction in science and technology funding, although investment is continuing in this area. This funding represents the future for the jobs and smart businesses we want to create. Regardless of how this crisis affects us, we must strive to maintain our funding for science and technology.

In the context of this debate on jobs and development, I am pleased that ICTU and the Government have agreed to embark on another phase of getting to know each other or renewing their friendship. I have been an advocate of partnership since my time as shop steward in the school in which I taught. I have always believed industrial relations should be conducted through jaw-jaw rather than war-war. I do not see the purpose of strikes in these terrible times and was not surprised to hear about the outraged e-mails sent to "Today with Pat Kenny" on Tuesday morning. Every house in the land is facing or experiencing unemployment. Thankfully, therefore, the strike has been averted.

Before I left my bolt hole in the Leinster House 2000 warren for the Chamber, I read once again the ten points of the social solidarity pact. It is difficult to disagree with any of the points because they are all motherhood and apple pie but I failed to find in them a single solid proposal which would enable us to get over the debt hump. I was nonplussed to learn that Mr. Begg, who is a very worthy person, is advocating a longer period in which to repay our debts. That will mean lumping our grandchildren with debt repayments. I do not approve of this suggestion but I hope it will not be a stumbling block to the parley among the social partners. We have to repay our debts before the deadline set by the EU because we cannot shirk our responsibilities in that regard. To advocate that we lengthen the repayment period is to act like Judy Garland in "The Wizard of Oz". There is no merit in the suggestion and it will not produce a good outcome. A small amount of pain might be spared now, but the suffering will be worse as our borrowings double.

By and large, however, I am supportive of social partnership. Elected representatives do not often enough acknowledge the inestimable contributions that the partnership process has made to Ireland's industrial and social relations over the past 20 years. When we were coming into our glory years, people asked me during my ministerial visits to other countries the reason for the arrival of the good times in Ireland. I always cited our education system, in which I am a firm believer. I am aware that the Leas-Cheann Comhairle was also a teacher. Good education is the foundation for whatever way of life one embraces. The social partnership model is equally important to our success. It can appear cumbersome at times and one can groan at the long faces that appear after meetings in Government Buildings, but we need negotiations to flourish regardless of the budget's outcome. I assume that the decisions on the budget have already been made, although we are told that further frenzied meetings are to take place.

I wish all parties luck in their deliberations, even if the budget will be on paper by the time the social partners get to grips with it. I wish all parties to the talks fair weather and honesty on both sides. That is what is needed. I am aware that often people have to throw shapes and say and do things for, perhaps, a wider audience. At the same time there is no need for that carry-on. We all know one another well enough now to be able to say, within those talks, that throwing shapes is not enough. I heard on the radio this morning that there is great social unrest in France. We constantly hear of strikes in France, with all airports, bus and railway stations closed and many thousands on the streets. They seem to be able to wear it well, although I do not know how. I was once in Paris when it was impossible to get out of it, and that was an awful situation. There is talk of a revolt. I do not know whether it will be À la Marie Antoinette, a peasant revolt or whatever, but President Sarkozy had better get his boots on and try to manage matters. I am quite sure he can do so, as he showed when he visited this country.

I also believe we need the social partners for another purpose. I am not deviating, as this is still part of industrial life. It seems we are to have another Lisbon treaty referendum, even though I had advocated that we could not have another referendum for many years. However, I now realise that if we do not do so we will be humped. If we are to have another referendum we need——

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