M J Nolan (Carlow-Kilkenny, Fianna Fail)

I welcome this legislation and commend the Government on agreeing to it. I would hope that it can be fine tuned by the time we get agreement and I commend Deputy Varadkar on bringing it forward.

We all are well aware that in this difficult economic climate all businesses are suffering, and the small indigenous companies in Ireland are suffering more than others. The large foreign direct investment companies which come here have large resources and facilities which smaller Irish companies do not have. In the past year, in particular, Irish companies have been caught by the twin effects of the downturn in business and the compounding shortfall of available credit from the banks.

I am well aware of companies in my constituency which are stretched to the limit to keep going and to keep their workers employed. In that regard, it is good that where the Revenue Commissioners - which I will not state have adopted a less hard line attitude on the collection of revenue - see a genuine effort being made by companies to fulfil their obligations on VAT, PAYE, PRSI, etc., they are making an effort to accommodate such companies in ensuring that their business and employment continues.

Banks and financial institutions are being more careful in assessing companies when they apply for credit and this is creating a knock-on effect where suppliers, in effect, are being used as bankers by some of their customers. Clearly, this cannot continue. Some well established Irish companies which have a track record of successful business and which have been profitable for a number of years have built up reserves. I have been speaking to a number of medium-sized businesses which find they are taking on the role of bankers and have more credit extended than ever before. An extension of the small claims court would be welcome for companies which have a large number of outstanding debts, the pursuit of which in the Circuit Courts would not be worth their while due to the costs involved and the impossibility of securing anything like what is due to them. Such companies would look to what is proposed in this piece of legislation and avail of that. It would ensure that companies about which previous speakers have spoken who strive to get the longest possible credit terms would think twice about going down that particular road and that we would have a stronger, leaner and, I suppose, meaner business sector, particularly in the small and medium enterprise sector.

The problem is not unique to Ireland. The UK and France, in particular, have experienced this problem over the years. By bringing in legislation those countries ensured the protection of their small and medium enterprises.

I wish the Minister of State, Deputy Calleary, and Deputy Varadkar every success in pushing this piece of legislation through. I would not like to see it delayed too long because there are companies which will not survive if this is extended too far into the future.

See this speech in context