James Reilly (Dublin North, Fine Gael)

I thank Deputy Varadkar for bringing the Bill before the House. This issue is a matter of concern up and down the country and everybody one meets or speaks to, whether involved in trade or trying to run factories or small businesses which are holding on by their fingernails, is looking to the Government and asking what is it doing to help him or her but he or she is not seeing that help coming through. Consider the amount of money going into Anglo Irish Bank, none of which is being made available to those who need overdraft facilities for their business. I will cite one particular instance of an electrician who has a small number of men working for him. Two years ago it was not an issue for him to obtain an overdraft of €90,000; today he has been waiting three months for an answer to his request for an overdraft of €10,000. He cannot do business. A number of opportunities are coming his way but he cannot afford to take them because he cannot take the risk without an overdraft.

Small businesses are suffering. The car trade, to mention but one, is on its knees. In Stephenstown Industrial Estate in Balbriggan in north County Dublin there were 360 jobs, of which 80 are gone. Of the 280 jobs remaining, 80 are under threat. I met the business people concerned a couple of weeks ago and they are completely frustrated. They pointed to Northern Ireland which is only 40 miles from them. They wonder why people would want to set up in Fingal in the South when they could travel to the North where set-up costs are much lower.

The rateable valuation here is far too high. It was calculated at the height of the boom when property values and economic activity levels were significantly higher. That is not the situation now, as we all know. Fine Gael asked that all rates be frozen, but that has not happened in all areas. We need to examine that issue again. Landlords are being asked to review rents downward to reflect the reality for business, but how many landlords have cut rents? Many tenants have been able to renegotiate. I ask county councils to also reconsider and reset their rates, particularly for businesses which are trying to sustain themselves through these tough times. They might consider a discount of, say, 20% for two years and then review the position again. Half a cake is better than none. If the 80 jobs mentioned are lost, it will cost the Exchequer €20,000 each in lost revenue, tax payments and welfare payouts. Everybody will lose in that case.

Another issue is that development levies were set when the economy was at an all-time high and property was three or four times the price. The levies have not changed. They must be reviewed downward. If one sets up a factory in the North, the nominal charges for connection to services are of the order of €2,000. In the South they are more than €100,000. That is unrealistic. We must cut our cloth to suit our measure.

Deputy Varadkar mentioned other issues, including the need to reduce the VAT rate downward and a PRSI holiday for those who take on new employees, but I wish to raise an issue I mentioned yesterday. We are trying to create a green economy, yet there is a connection charge to the grid of an outrageous sum such as €1.2 million to €1.7 million. That kills business before it gets off the ground.

I would like to see the Government take on board the recommendations made in Deputy Varadkar's Bill which I commend to the House.

See this speech in context