Deirdre Clune (Cork South Central, Fine Gael)

I was glad to hear the Minister of State say he has adopted the spirit of this legislation. It is important that something is done to help small and medium-sized enterprises because they are the backbone of this economy, employing an estimated 800,000 people. Unfortunately, that number is dropping on a daily basis.

All of us are aware of the difficulties small businesses are facing. The Minister of State must have many deputations to his office in that regard. ISME circulated all Members with a survey it did of its members recently. Cork Chamber of Commerce circulated me, and I am sure the Minister, on the difficulties its members are having in surviving in these times but, most importantly, accessing credit from the banks. That credit is not forthcoming and it is resulting in job losses.

I was speaking to somebody yesterday who could not get €10,000 from the bank to facilitate him with a lease payment. This was a profitable retail business in the city centre that has been operating for at least 30 years. The alternative for businesses that cannot get relatively small sums such as that is to let someone go, which adds to the unemployment figures in the area.

Those stories are repeated up and down the country, and I am sure the Minister of State is aware of many of them. We must ensure that credit flows to small businesses. The banks are telling us one thing, the Minister will tell us another here but the reality on the ground is that it is not happening, and small businesses will go to the wall. If that does not happen we will lose the energy and commitment of those risk takers. Many of the owners of those small businesses are risk takers. It is not easy to go into a small town or a city centre and decide to set up a business, pay rent, commit oneself to local authority charges, pay water charges and take on new employees. That is a major risk people take. They want to do it and they will work hard, but they are not being facilitated in this climate. This country has recapitalised the banks. The State has invested a great deal of money with a view to ensuring that credit would flow to small business but it is not happening.

There are many areas where we could help small businesses. The issue of an upward only rent review must be addressed. Legislation must be examined to ensure that is taken out of lease clauses. Rents are falling dramatically, yet many lease takers are tied in to a position where there is only upward rent reviews. When the Minister of State is talking to the Attorney General in the next six months, he might discuss with him the possibility of introducing some form of legislation to ensure that rents can be reviewed downwards and follow the economic trends.

Small businesses must be protected. If we do not protect them now we will not have them when the country comes out of this economic crisis.

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