John Perry (Sligo-North Leitrim, Fine Gael)

I am pleased to speak in this very important debate. Arising directly from the incompetence of a succession of Fianna Fáil-led Governments, our country has been hit by a savage economic crash. The consequences of the failure of Fianna Fáil are visible everywhere in the country, including in the record unemployment levels, in the resumption of forced emigration of a new generation of well-educated young people, in the massive drop in the standard of living for ordinary citizens, in the closed down factories, in the empty housing estates and in cutbacks in health and education and services for the disadvantaged in society. No part of the economy and no public service is safe from Fianna Fáil cutbacks and close downs. There is no confidence and credit in the economy.

We had a budget in October 2008 which was presented as a minor adjustment to facilitate a soft landing for the economy. Then in April 2009 we had a supplementary budget. It is now clear that this budget was also based on an evasion of reality. The April 2009 supplementary budget was followed by the NAMA legislation and then by the 2010 budget. For some national and international commentators, the 2010 budget was acknowledged as the first budget to truly face the reality of the economic crisis now engulfing both the national economy and the Government finances. The 2010 budget was followed by the emergence of the true scale of the banking disaster and the cost of bailing out the banks, which is immense at €50 billion. There have also been indirect costs in that it has stifled enterprise and closed the economy. As we await the 2011 budget, we see that everything until now was just the calm before the storm.

This debate is a lead-in to the toughest budget in the nation's history, not only for 2011 but for the next four years. With the emerging picture for the 2011 budget, we all clearly see how far Fianna Fáil has failed. This budget is almost exclusively about starting to fix the Government finances, with little or no reference to protect existing jobs and create new jobs.

In terms of specific policy areas, I would like to see more attention being given to the local small business sector which employ one to 50 people. From the small acorn, the large oak grows but there is no respect in this country for the business person and entrepreneur who is creating a small number of jobs. There is nothing for them.

If the economy is to grow again, we must create jobs in small companies and especially in the six emerging sectors of health care, creative industries, bio-technology, post modern agriculture, green energy and tourism, all of which are full of potential. Small and medium sized local companies are of central importance in economic policy because of their degree of integration into the national economy. Our party leader dwelt very much on the role of small companies in his contribution.

There is an urgent need to review the effectiveness of the policies and incentives used in the development of the small business sector. The Government must bring forward a range of measures to tackle the challenges faced by the small business sector. These policies must unlock their potential for long-term sustainable growth and job creation. We are back to the acorn and the small company.

There must be an environment in which entrepreneurs and family businesses can thrive and be rewarded. We must put the interests of small companies at the top of the political agenda. Over the past number of years, the emphasis has been on Enterprise Ireland and IDA backed companies. We must have a new direction for small enterprises and companies. We must think big in regard to small business. The significance of the sector must be formally recognised and we must examine closely the structure of the support service delivery for the sector.

To make self-employment a potentially attractive career option for young people, we must provide them with the necessary supports and skills to turn their ambitions into successful ventures. Successful transfers of existing businesses preserve more jobs on average than those created by new start-ups. The transfer of businesses and the skills associated with them should be simplified and should, therefore, be given the same support as setting up a new business. We must look again at issues around taxation policy to ensure that it supports the transfer of businesses from father to son or otherwise.

A large number of small companies are going out of business in the current recession. Each of these business owners has a worthwhile re-start potential and that must be recognised. We must give them a second chance. Making a new start, however, is a lengthy and complicated procedure - it is almost impossible. We must urgently reform our bankruptcy laws in order that in the case of non-fraudulent bankruptcy, entrepreneurs quickly get a second chance and are treated on an equal footing with new start-ups.

The biggest complaint from small business is about compliance with administrative regulations. Small companies believe they bear a disproportionate red tape burden in comparison to larger companies. Urgent Government action is required to eliminate the red tape burden on small business. In addition, there are a range of other costs arising from direct and indirect Government imposed charges on the small business sector, such as energy costs, rates, leases, rents and dispute resolution procedures. To date, Government efforts have not delivered lower costs for business. The Government must take action to save small companies time and money, thus freeing resources and time for innovation, business growth and job creation.

Raising the right kind of finance can be a major difficulty for small companies and entrepreneurs. The Private Members' motion last week related to support for small companies but it was voted down by this Government. Risk aversion often makes investors and banks shy away from financing firms in their start-up and early expansion stages. Small companies must be better assisted to fully unlock their potential for long-term sustainable growth. Access to finance for small companies must be facilitated.

In addition, small companies are often undermined by a late payment culture. Much insolvency is directly due to late payment. There is an urgent need for Government action on late payments and a credit guarantee facility. So far, all we have is talk but no action.

Given the expected weak state of domestic demand over the next few years, small manufacturing and service companies will have to look to export markets for growth. The Government must give more support and encouragement through identifying business opportunities, providing advisory and networking services and upgrading of personal skills in the areas of market development and management competence. That is very important. These are some of the policy areas where the Government can bring forward practical proposals for the development of small companies and job creation. There are other opportunities in other areas.

Fine Gael is the only party with a sense of urgency that the country needs bold new approaches to tackle the growing jobs crisis. It is the only party to present concrete, effective measures to protect existing jobs and create new ones as well as bringing down business costs and helping struggling companies to stay afloat. What the country needs most of all right now is an election, not a budget.

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