Margaret Conlon (Cavan-Monaghan, Fianna Fail)

As this is my first opportunity to speak since the recent by-elections, I join my colleague, Deputy Collins, in welcoming Deputies Maureen O'Sullivan and Lee to the House. I wish them well as they represent and serve their constituents.

I welcome the opportunity to contribute this evening and thank Deputy Varadkar for tabling the Bill. In the past year, the country has witnessed the worst economic recession since 1929 and every business has felt its effects. As this is a difficult time for all businesses, they must be supported. Small and medium-sized businesses are indigenous industries and have been the lifeblood of the economy, providing much needed employment and boosting their local economies. My constituency is renowned for its indigenous industries.

However, such businesses have suffered many difficulties in recent times, including a decrease in sales and reduced incomes. Every day, they struggle to keep employees working. I salute their attempts to keep people in work. Many are still making a contribution to the economy. It is important that we, as a Government, continue to support them as they play their important role and face challenges. It is important that we do everything to ensure that they grow and maintain employment.

The economy will only turn the corner because of growth in the national economy, but it will not happen if we do not support our SMEs. They are facing challenges. As a Border Deputy, I must mention our exporters' cross-Border problem posed by sterling. It is a considerable challenge for our small and medium-sized businesses.

Entrepreneurs face problems receiving payment for goods and services and other problems resulting from lack of credit and the availability of cash flow. Another serious problem is the loss of our competitive edge. During the good times, we became uncompetitive and will only regain international competitiveness through cost reductions. Businesses must be proactive in this regard. They must get more for less. I agree with Deputy Nolan, who stated that businesses need to be leaner, meaner and keener. Some cost reductions are already occurring. I welcome the reduction in energy costs in particular.

The Government is happy to accept the Bill in principle and I would support the proposal of the Minister for Justice, Equality and Law Reform, Deputy Dermot Ahern, that it be deferred for a six-month period so as that it could be reviewed. In my role as a public representative, I have recommended the small claims procedure when constituents have come to my clinics looking for advice on redress. The procedure is consumer friendly and easy to use and consumers are happy to know that they do not need to engage the services of a solicitor. For many, this is a distinct advantage, as they might not otherwise be able to proceed with their claims. The other great advantage is that the claims are resolved in a speedy and efficient manner. It is important that we maintain this element.

I would not like to see a situation whereby businesses would use the procedure to pursue claims against individual consumers. In the current economic climate, I share the view of the Minister that it could make consumers more vulnerable. I would urge caution regarding large businesses creating a situation whereby they could use the procedure to pursue consumers or small businesses for relatively small debts. It is imperative that any widening of the procedure be targeted in an appropriate manner. Many small businesses are limited companies and have limited liabilities. Since they may be required to engage legal representation, the Minister is right to take advice in this regard.

We know that economic recovery will not occur if we do not stabilise and revitalise the banking system. The steps introduced and the actions that we will continue to take are necessary to repair and revitalise our financial system, which will aid economic recovery. Our banks must continue to lend money to assist our SMEs, but they cannot lend if they are not in a position to attract funds and they cannot survive if they do not have access to funds. Our economy is flexible and resilient and is adjusting to the new economic circumstances. We must continue to work hard and redouble our efforts to assist the small and medium-sized businesses so that they continue to play an important role in the future. They need credit to continue trading. The events of recent months have resulted in cash flow problems. Banks must continue to provide credit and I urge businesses that have been afraid to approach them to do so now.

I accept the Bill in principle. The Government is in broad agreement with Deputy Varadkar's proposal and I thank him for tabling it before the House. I ask that he appreciate the Government's genuine concerns when it proposes that the reading be deferred for a six-month period to provide an opportunity to consider the issue in detail. The current system is working well and we need to ensure that we do not put it at risk. I am sure that the Minister will conduct the necessary analysis and review quickly to ensure a Second Reading in six months time.

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