James Bannon (Longford-Westmeath, Fine Gael)

I thank my colleague, Deputy Hogan, for bringing this important motion before the House to highlight an issue that is destroying our competitiveness and driving the galloping horse of recession, to the detriment of businesses throughout the country, especially small and medium enterprises, SMEs.

Government driven non-pay costs in Ireland compare poorly with other countries. According to an IDA business attitude survey, charges and energy costs are a strong ongoing deterrent to energy intensive companies coming to invest in Ireland. Prices were set extremely high in response to the $148 a barrel peak for oil, but despite the subsequent collapse in the price of oil and gas, in a blatant anti-competitive move, Government price levels have not reflected that. Currently, Ireland has the second most expensive electricity charges in Europe.

The Minister should consider the knock-on effect for our local regions, as high unemployment and closing businesses tear the economic viability from rural and urban communities. With a terrible sense of history repeating itself, the slowing of the live register can be attributed to one fact only - emigration. That is a word that dominated the post-war years up to the 1980s and impacted on generations. It is now to be the legacy of the Fianna Fáil and Green Party Government.

It is interesting to see the complete lack of impact the current Minister for Enterprise, Trade and Employment is having on the red tape that immobilises businesses. That was also a feature of the Minister's previous portfolio, with which she failed to get to grips, something to which our farmers will attest to their cost. Her reply to a parliamentary question on the issue, which stated that her Department is charged with leading the cross-Government drive to reduce red tape, is not guaranteed to inspire confidence.

My own area of Longford-Westmeath is at the heart of the country but it is certainly not at the heart of Government provision or assistance. Across the board from health to education to infrastructure, the midlands has been consistently ignored by this Government. Despite the economic development of Longford-Westmeath which was, until the Government pulled the plug, progressing at a steady pace, driven by local input and hard work, the Minister has now removed our competitiveness. We are facing one closure after another, as small firms are driven out of business and large foreign investors shun high charges to go elsewhere. Increasing costs have made it impossible to survive in a competitive global market. Car dealerships are particularly hard hit but the Government has failed to provide incentives to rectify the fall out.

Every town in the midlands is feeling the pressure. There is a strong feeling that businesses cannot be expected to pay the same rates as when times were good. It is imperative that rates are frozen to take account of the current economic climate. One hotel manager in the midlands said recently that businesses are being fleeced, between refuse collection charges, water rates and high energy charges.

We can forget about tourism. Hotels in the midlands are shelling out tens of thousands of euro every week on general running costs, in an industry that is currently low on occupancy and equally low on a future. Occupancy in some hotels has fallen by 70% in 12 months. Lack of trade due to drink driving restrictions is forcing hotels and bars to open late and close early. Unless the hotel industry is supported by the Government it is set to suffer the same fate as the construction industry. The Minister should step up to the plate and provide answers and incentives. That is what people need.

The gap between price and value is as much to blame for economic stagnation as the recession and that is where the Government is to blame. Logic would dictate that ever-increasing charges are not the way to promote recovery. Instead, incentives, especially for small and medium firms must take the place of increased taxation. Fine Gael will support small businesses through our SME rescue package, which will reduce local authority rates and freeze Government charges, reduce energy costs, abolish the €10 travel tax that is destroying tourism and make it easier for SMEs to win public tenders.

Small native businesses are the key to recovery due to their close relationship with consumers. Properly supported, with low cost of entry, these companies could provide a more affordable product that would fill a gap between the standardised global product and the requirements of the home market. It is a pity I do not have more time as I have much more to say on the subject.

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