John Perry (Sligo-North Leitrim, Fine Gael)

I congratulate the Ceann Comhairle on his appointment and wish him the best of luck.

The Fine Gael motion calls on the Government to freeze all Government charges on business until 2012. Speaking as a Deputy who understands the needs of business, I know this motion is the most appropriate response to the circumstances facing every small rural business in the country.

Recently, the Government organised a blue skies event at Farmleigh to look into a rosy future when we are next back in the land of plenty. It took the focus off the current crisis facing the country which was probably a welcome relief for some Ministers, even if it only lasted for a day or two. Now, however, we are back to reality with a vengeance. Ministers are going around the country outdoing each other with the talk of cuts in Government expenditure. The question must be asked, however, what about the current businesses struggling to create wealth and to maintain employment. Nobody in the Government is sitting down with real business people working a 40-hour weekend at the coal face to ask them about the difficulties they are experiencing.

We are in the midst of an unemployment crisis. Unemployment is at record levels in the north west. We must do everything we can to maintain existing jobs and to keep people in employment. The Fine Gael motion puts it up to the Government to assist business in a practical manner by reducing the Government-imposed costs of carrying on a business. It demonstrates that Fine Gael's priority is to listen to those already providing employment. The motion is about the specific topic of Government-imposed costs on business. The Government's amendment is about a general commitment to driving down the cost of doing business in Ireland.

In case the Minister is not aware of the situation in the private sector, the Government is driving down the cost of doing business in that sector. This Fianna Fail-led Government has crashed the national economy and the private sector is suffering the brunt of this crash. Existing locally-based business are struggling to stay afloat, with the service sector on the floor at present, including hotels, restaurants and many other areas. All the evidence on the ground is that private sector local businesses and service operators are making significant reductions in their cost base. This is the only option they have to try to keep the business alive and keep people in employment.

We are an open, exporting economy. Some companies are closing down and jobs are moving abroad, in some cases to other EU countries. This clearly shows that our costs are seriously out of line with competitor countries. We must get our costs down in the public sector to match what is happening in the private sector. Whatever about reducing the cost of the provision of public services, it is critical to maintaining employment in the private sector that there be no increase in Government charges on business until at least 2012.

Over the past 12 months, Fine Gael has brought forward a number of specific proposals that focus on the preservation of existing jobs by providing immediate practical measures that will reduce the cost of doing business. Regrettably, the Government has seen fit to block and frustrate every practical measure proposed by Fine Gael. Keeping down and reducing Government-imposed costs is crucial for any business to survive in the current climate. The Government must control and reduce its own direct costs on business as a key contribution to national recovery. However, instead of reducing costs on business, the Government has maintained and in some cases actually hiked up charges and costs to business. Energy costs are too high, VAT and indirect taxation is, unbelievably, the highest in Europe. Every day, companies struggle with tax bills, needless red tape and bureaucratic road blocks.

Many companies and small businesses are facing extinction in the present economic crisis. The situation is even more critical for businesses in the Border counties, which are on the floor. These companies struggle every day with the euro to sterling differential. The Government must take action now to give viable business the best chance to survive the current economic downturn. The motion is a valuable and urgent practical measure. It fits into the bigger picture of improving competitiveness through minimising Government-imposed charges on business. It is about the survival of small companies and small family businesses. It is about trying to support the business people seeking to protect their businesses, including family businesses, and the staff employed in them. These businesses are key to getting our country out of the mess created by the Government. I call on Fianna Fáil Deputies to support the motion.

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