John Perry (Sligo-North Leitrim, Fine Gael)

This Fine Gael motion calls on the Government to put jobs at the centre of its economic strategy. The reason the motion makes this call is that this Fianna Fáil Government has ignored the issue of job protection and new job creation. In the past few years job losses have hit the small business and small manufacturing sectors particularly hard. Local jobs have been lost in every town and village throughout the country. Small business is the lifeblood of local communities and this Government has ignored the plight of small, local, community based business.

Last week's news from Insolvency Ireland made particularly difficult reading. The report states that four Irish companies a day have gone out of business between January and June of this year. The total came to 800 for the period. The rate of failure was27% higher than in 2009. The report also identified that there has been a 174% increase in companies going into receivership. Many of the companies listed in that report are small businesses, typically local community based building, services, hospitality and retail businesses. The report shows that the number of companies unable to honour their debts has increased by 27% between January and June.

Fine Gael strongly supports small business. Small and medium enterprises, SMEs, are the biggest employer in Ireland and are the backbone of local economies. Much more must be done to create a business-friendly environment in terms of less regulation and access to funding. While these businesses are started locally we must examine ways, for example, through the use of information technology, IT, to help SMEs to access new markets. Research and development is also very important. We must support the traditional industries that still employ large numbers of people. The agriculture and agri-food sectors can still offer much in terms of exports, rural development and the development of local economies. The innovation principle should also be applied to these sectors.

All the indicators are that the small business sector is still in decline and the forecasts are that things will get even worse before they get better. This is catastrophic for small community-based companies. The Government has failed. The immediate concern for many companies that are struggling to stay in business until the economy clearly turns the corner is the availability of credit. There is an old saying in business, "cash is king". This is especially true for a small business in the depths of a recession when cash income becomes scarce. At present, there is no confidence and no credit in the economy. One cannot do business when there is no confidence and no credit.

The small business sector can do its part in bringing this country out of the present crisis through the creation of jobs at local level, but it can only do this if it gets the full and enthusiastic support of the Government. The sector has been neglected by the Government for the past ten years. Every household in Ireland depends on the sector in some shape or form, be it for goods, services or a job. The Government can and must do something about this crisis. I call on it to put real pressure on the banks to release credit to the small business sector. The banks are sitting on piles of cash. They are in receipt of millions of euro of taxpayers' money. As Deputy Bruton said, billions have been put into a bankrupt bank, which is unbelievable. The banks also have millions of euro from the lucky people who can save money. All this money is sitting idle in bank accounts, doing nothing for the recovery of the economy and the creation of jobs.

With the economic crash, consumer confidence has crashed as well. Given the insecurity in the economy, those consumers who still have disposable income are now putting it all into savings. However, they must ask themselves if it is wise to do this, where it earns a tiny interest, and if it is the best and most civic minded thing they can do. We need to re-ignite the economy and consumers can play their part in economic recovery. Consumer cash spending is the only significant way to get the cash back into local small businesses. The first and immediate step to restoring the national economy must be to rebuild consumer confidence so domestic demand can lead off the recovery. I am calling on the Government to initiate a simple, direct and immediate action by launching a campaign to encourage people to create jobs locally, to spend locally.

I refer to the role of county enterprise boards and the opportunity for job creation in the retail sector. There is a lack of confidence and cash. People are completely dismayed to see €24 billion being put into a bankrupt bank, a bank which is literally closed for business. I have yet to meet anyone who was given a loan by Anglo Irish Bank. All it is doing is managing its accounts. That bank is literally closed, bar putting a bolt on the door. There is no cash, no job creation, no incentives. Business people are given ten reasons not to create a job. There is no encouragement for the creation of enterprise in the real economy.

Opportunities for small companies are the backbone of this economy. I refer to research and development, the business innovation units in the institutes of technology such as Sligo Institute of Technology and universities. We must give a new sense of direction to entrepreneurs. These are people with ideas. We must encourage recent and young graduates to develop their entrepreneurial ideas. The big companies are very important. I believe that small acorns grow into great oaks. We have to encourage enterprise at the beginning level. It is regrettable that thousands of people are now leaving this country only because they have no job. Parents are dismayed to see their well educated sons and daughters, educated at great expense, having no opportunities.

A lot more should be done with regard to research and development in the innovation units at the institutes, colleges and universities to help business in the real economy. The lack of cash is a serious problem. One hears of 100 loans a day being approved by a bank but there are so many caveats and people are unable to draw down that money. The banks are not doing their business. We were told there would be a wall of cash for investment. There is no wall of cash and no money. The banks are shoring up their balance sheets and they are investing little or nothing in the economy. I can assure the House that if Fine Gael gets the opportunity we will support small enterprise in every village and town because it is the backbone of this economy. This Government has failed miserably in that area.

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