Darragh O'Brien (Dublin North, Fianna Fail)

I am pleased to be given the opportunity to speak on the Government amendment to the Private Members' motion tabled by Fine Gael. The Government remains committed to ensuring that Ireland remains open for business to both foreign and domestic companies and enterprises. As a small nation we have been incredibly successful in attracting foreign direct investment against stern competition. Indeed, even in these difficult times we continue to attract such investment, which is vital to creating jobs and maintaining the diversification of our economy. Our continued success in attracting new research and development ventures into Ireland is a real example of how Government policy in areas such as taxation and up-skilling, in real terms, creates new high-end jobs. As the Minister of State mentioned in his speech yesterday, a recent World Bank study rated Ireland 7th out of 180 countries in terms of ease of doing business. It is important for me to put on record my praise for the work done by our State agencies on a daily basis to ensure people set up new business in Ireland. In particular, I commend both Enterprise Ireland and IDA Ireland for the sterling work they do on behalf of this country.

As I have said previously in the House, there is no doubt Ireland will come through this recession more quickly than some commentators and celebrity economists - one of whom is now a Member of this House - would have us believe. To do this, however, we must regain competitiveness, and the signs are that we are going in the right direction. A recent European Central Bank report on the top 15 countries showed that labour costs in those countries have risen by 3% in the past 12 months, while Ireland's have dropped by approximately 4%. This is a sharp and badly needed correction. We are now behind the EU 15 average. Ireland, to ensure future economic prosperity, needs to reduce its labour costs further. I commend the many people who have, in the interests of maintaining jobs and competitiveness, seen the bigger picture and agreed to wage freezes and, in many cases, reductions. I sincerely hope people in other sectors will follow that example.

Many of my colleagues have mentioned the recent salary increases granted to certain employees in AIB. The board's decision to allow a 3% pay increase was nothing short of disgraceful and shows no regard for the taxpayer or the Government which has come to its rescue. In the current climate, for AIB even to contemplate paying increases, which are effectively coming from taxpayers' money, shows how out of step it is with the times. It also shows utter incompetence. Over the next week or so we will have a further opportunity, on Committee Stage of the National Asset Management Agency Bill 2009, to ensure that this bank and others do what they are supposed to do, which is to support viable Irish businesses. AIB, in particular, is not doing this. We as a Government need to take a tough stand with the bank, by way of legislation, to ensure it supports viable Irish businesses and stops putting up barriers to progress and further investment.

I also appeal to the Revenue Commissioners to take a more understanding approach to businesses, particularly in the SME sector. I am extremely concerned about the feedback I am receiving on a daily basis from small businesses about the way they are being dealt with by the Revenue Commissioners in the current climate. The heavy-handed way in which attachment orders are being used needs to be urgently reviewed. I am fearful that because of the approach being taken with this sector in particular, the Revenue Commissioners are putting in peril the very existence of some firms. I am asking it now to take a medium-term view when dealing with firms that have always paid their taxes and are now experiencing difficulties in doing so. I am not asking them to write off any taxes owed but simply to look at the track records of businesses and take a realistic view with regard to the payment of outstanding taxes. Its approach at the moment is counterproductive and is putting businesses at risk. If businesses go to the wall, the Revenue Commissioners will never see the taxes that are due to them. I urge the Minister for Finance and the Minister of State, Deputy Billy Kelleher, to seek assurances from the Revenue Commissioners that it will do business with business.

The Government amendment to the motion shows the Government is taking the necessary steps to support our SME sector and, in particular, our export sector. However, we need to do more. We must ensure this area is prioritised because we will come through the recession with the assistance of Irish firms and businesses.

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