Michael McGrath (Cork South Central, Fianna Fail)

I commend Fine Gael on putting down this motion, which is particularly important. The issue of job retention and job creation must be the national and political priority at this time. When I completed my training as a chartered accountant in Cork, I went to work in a start-up business - it was a new radio station - as its financial controller. Many of the lessons I learned at that time about the practical issues involved in running a small business hold true for the Irish economy today.

Consider the two pillars of activity in the Irish economy. The export sector has performed remarkably well and has proven to be exceptionally resilient in extremely difficult international trading conditions. On the other hand, SMEs are trying to survive at a time of reduced demand for their goods and services. They have had to contend with a major credit crunch and their customers have experienced a serious drop in their disposable income.

There has also been a collapse in consumer confidence. These are the issues faced by businesses. From my perspective, the same key principles apply to export business and SMEs in terms of their interaction with Government and the wider public sector. Those issues are containing one's costs and making oneself as competitive as possible vis-À-vis one's international and domestic competition and minimising compliance and regulatory work, which many business see as a significant burden and, largely, as a waste of time. They want to operate in a low taxation environment for business and want the burdens imposed by the State and the wider public sector on business to be kept to an absolute minimum.

Business success is an enabler for an economy and society. Profitable commercial activity will generate revenue for the Exchequer. Risk takers should be rewarded. Very often they are pilloried in this country. I do not accept the view that one should crucify successful business people in this country with exorbitant rates of tax. They have to pay their fair share, but we must establish a strong commercial incentive for people to take risks in our economy. Every facet of Government policy must be business proofed. Departmental decisions, the impact of the work of State agencies, in terms of compliance and the charges imposed by the commercial semi-State sector, must all be business proofed. That is essential. There should be a national policy regarding local authority rates. There must be an aggressive drive to reduce costs in terms of energy, waste and so forth. The banking system must be addressed through NAMA and recapitalisation to get credit flowing through the banking system again.

The focus of the Government has to be and will be, for the next two years, on jobs, building confidence in the economy and supporting commercial activity in all its forms. Support for the business sector has to transcend all aspects of Government and the public sector generally. When there is a jobs crisis, a public finance crisis and an economic crisis, other issues will have to take secondary priority. I am confident Government decisions and action will lead to a reversal in our economic fortunes.

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