Tom Barry (Cork East, Fine Gael)

Even though I am tempted to do so, I will not become involved in a slagging match.

The Bill is part of a suite of measures - this also comprises the Protection of Employees (Temporary Agency Work) Bill 2011, which was recently passed by both Houses, the Industrial Relations (Amendment) Bill 2011 and the Competition (Amendment) Bill 2011 - designed to bring about legislative change. The Bill is certainly a step in the right direction for business.

The Government has placed jobs at the centre of what it is attempting to do. The action plan for jobs, which was published a in recent times, refers to the partial credit guarantee provided for in the Bill and states that for every €100 million extra in loans guaranteed under this demand-led scheme, more than 1,200 small businesses will benefit. That is good news for everyone. The action plan also states that access to finance, credit and cash flow remain crucial for small businesses. I am of the view that the action plan for jobs will in time come to be seen as a seminal document. In that context, it is similar to the Food Harvest 2020, which applies in the area of agriculture.

There are three main aspects to the action plan for jobs. The first of these relates to the establishment of a potential exporters division within Enterprise Ireland. The second involves the establishment of a one-stop-shop, a development which is essential for those who are new to business and who require some direction. That the action plan will be measured and monitored by the Department of the Taoiseach is crucial. We should not establish anything that is not going to be policed. Every three months, the Department will evaluate whether the targets relating to the plan have been achieved. If they are achieved, that will be great. If they are not, however, we must ask why that is the case.

I am aware of the work done by the Minister of State, Deputy Perry, in publishing a 70-page report - I hope other Deputies have taken the opportunity to peruse this - entitled "The Voice of Small Business: A Plan for Action". Some key individuals who are involved in the area of business in which I am involved, namely, the SME sector, in which there are over 200,000 firms which employ approximately 655,000 people. Like my business, many of these concerns employ ten people or fewer but they are crucial to the economy. The big ticket items referred to in the Minister of State's report are access to credit, labour market costs and flexibility and local authority structures. The short-term priorities to which the report refers are the cost of doing business, access to public procurement, the hidden economy - which is a problem - and competition. No one is walking away from these difficult issues; they are, in fact, being examined.

I am an employer and I have my own business. In that context, I am aware that one is only as good as one's next year in business. Even though someone may have been in business for the past 20 years, he or she cannot definitely state that he or she will remain in business for the next ten years. There are no longer any guarantees. The introduction of the Credit Guarantee Bill means the Government is formally stating that even if a bank is not fully confident with regard to one's business idea, one will still have access to credit.

The banks will have a guarantee, although I admit the guarantee is limited at 75% of the amount loaned. The Government is not going to give a blanket guarantee and it will be 10% of the aggregate of all the loans handed out up to a total of €150 million. I am sure there will be improvements to this scheme, like in any business process where modifications are made, to ensure we get it right and working for everybody.

AIB's David Duffy and Bank of Ireland's Richie Boucher have explained to Members where the banks are at. They have recognised the mess they created but there is certainly a mood for change with them. I, along with others, have explained to them that small businesses have been starved of cash flow for the past several years which has been crippling. Small businesses do not want to stay in limbo for ever and want to move on. With the engagement of the banks and positive legislative changes such as this Bill, we will see more positive times for business.

I hate to shout it too loudly but in my area the rural economy is starting to pick up and not before time. While there are pressures, it is good to see a move in a positive direction such as this measure. I welcome this legislation but we are mindful there are many other aspects that need to be tackled.

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