John O'Mahony (Mayo, Fine Gael)

I welcome the opportunity to contribute this Bill. It is being introduced by the Government alongside other measures aimed at stimulating enterprise and creating jobs. Nobody is suggesting this Bill will solve our economic problems or do everything for small businesses but it is a building block and it has to be welcomed in that context. The small business sector supports 800,000 jobs and plays an important part in the economy. The announcement by major multinationals over the past six months, such as PayPal, Apple and Allergan in my own constituency, are welcome but we should not forget the impact of the crisis and small and medium enterprises.

This Bill will give a welcome stimulus to growth in small enterprises that provide three or four jobs. These enterprises do not receive the headlines given to multinationals when they open or close their operations here but they operate under the radar to provide jobs and confidence in the economy. The jobs they create foster vibrant communities, whether in towns, villages or rural areas. The president of the chamber of commerce in Claremorris stated recently that 72 businesses have closed in Claremorris and Ballinrobe over the past four or five years. That is an incredible figure for two small towns with populations of 3,000 each. Previous speakers raised issues in regard to rates and parking charges. The life of rural constituencies and small towns is been sucked away and some sort of remission from rates needs to given to small businesses in these areas.

This Bill can be a catalyst for regenerating the economy and providing a financial impetus to entrepreneurs who feel hamstrung by their inability to access credit. These businesses have been forgotten. I have met business owners who have good ideas but have grown frustrated by the lack of finance. One would could compare their plight to the university graduates who cannot find work because they lack experience. Five years ago the banks were throwing money at people and a business which sought a loan of €50,000 would be offered €100,000. Now the same business cannot get anything. Many business owners are leaving the country while others who stay have to be supported by the social welfare system.

Whatever help this Bill offers must be welcomed. If it works it will pay for itself because it will take people off social welfare. Everyone would like the fund to be bigger but no single measure will solve the economy's problems. It is the total package that counts. I am familiar with a number of people who have experienced frustration at the inability to get credit. This Bill will at least give them some hope. I am glad to note that organisations representing small and medium enterprises in Ireland have welcomed the Bill because they understand the difficulties their members are experiencing.

The Bill recognises that businesses cannot engage in profitable opportunities when they are refused finance by the banks. This in turn means that they cannot increase employment and in some cases they must make existing employees redundant. The Bill's potential impact on economic growth is clear. It will also have an impact on social welfare expenditure. We welcome the large multinationals and all that goes with them but it is vital to recognise the role of small businesses, which is what the Bill does. In many rural communities, there is no multinational or large employer but there are pockets of small firms keeping the communities alive and employing local people. There is growing evidence of vibrancy. Everyone is at their wits end but they have ideas. Sometimes people's character is shown when their backs are to the wall. Real leadership comes out, which is happening throughout the country with small business ideas. The farmers' markets or country markets are an example. These stalls are little businesses employing a couple of family members seeking to exploit a niche in the market. The Microenterprise Loan Fund Bill provides people with an opportunity and a leg up to use their resources to provide a few jobs.

Many speakers referred to the plight of self-employed people, who are not entitled to social welfare payments. As representatives, we all have experience of this. People in the Celtic tiger construction boom employed people and paid their taxes and, I would like to add, paid their VAT. Then they fell on bad times and, while their employees were entitled to social welfare, employers were entitled to nothing. I welcome the recent commitment by the Minister for Social Protection, Deputy Burton. We all talk about how social welfare must be reformed. One badly needed reform is to consider the plight and entitlements of self-employed people. I support the Minister in any restructuring that needs to take place in that mission. I welcome the Bill, which provides some hope to those who have not had it up to now. I commend the Bill to the House.

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