Mattie McGrath (Tipperary South, Independent) | Oireachtas source

I am delighted to speak on this motion. I cannot believe the Minister for Social Protection or the Minister of State at the Department of Jobs, Enterprise and Innovation, Deputy Perry, could stand over these policies. As a businessman, the Minister of State, Deputy Perry, should know better. He stated the Government is profoundly aware of the role that small and medium-sized enterprises play in terms of employing more than 650,000 people and contributing €10 billion to the Exchequer annually. These businesses are tired of all this back slapping and the Government's empty promises. Small business people are on their knees. Deputies from rural constituencies see this every day of the week in their clinics. Business people cannot get finance or support from anyone. Local authority rates and the other costs associated with businesses are too high.

The Minister, Deputy Burton, cited international figures but other countries know how to support employers. Businesses have received no support from recent Governments. The Minister admitted privately to me in the restaurant one evening during an event with the Irish contractors association that the real problem is in the public service. We are afraid to tackle the public service, however.

I have been a small employer for more than 30 years. I know my business intimately and I have the best of employees. Most small employers have excellent relationships with their staff. Big companies which are supported by the IDA and Enterprise Ireland can afford sick payment schemes. They are cushioned, but the man in the middle is the backbone of rural Ireland. The Minister did not mention the 20,000 to 30,000 farmers who employ their wives or two or three farm workers.

I beg the Minister to listen before she puts the final nail in the coffin for small businesses. I admire what she is trying to do at Cabinet and I recognise the difficulties she faces in dealing with right-wing Ministers. I respect that she must try to protect her own budget but this is not the way to do it. I recently held a public meeting on this subject in my constituency and I received a very large number of e-mails and messages of support. People have told me that they have faced repeated knocks. Their overdrafts are being removed and they are made to take out term loans if banks are even prepared to give them a penny. Banks are choking small businesses. Tax officials, who I respect in the main, have pursued aggressive policies over the past two years to balance their books. The officials who work in the tax offices, local authority rates departments or health and safety agencies should be put behind the counter of a small business for at least one week every year to learn how difficult it is to earn the money to pay wages, overheads and PRSI. In many cases employers pay the first three days of sick leave because they have an exceptional relationship with their employees. The employee may return from sick leave after one or two days because of this good relationship. That relationship will be destroyed by the Minister's proposals.

I received an e-mail today from a hotelier in my constituency who employed two workers, who were, unfortunately, non-nationals, but that does not matter because it applies across the scheme. Six weeks ago he put them on a three day week but he wanted them to return on a full-time basis this week because he was busy again. They told him they would lose too many benefits if they did so. I have been there myself. Employees have told me they have too many benefits. We have to change that system. It has to be rewarding to go to work. There are certain costs associated with work but we cannot permit such a system to continue. People might have been working with an employer for years, as they were in my case, and it hurts to put them on a three day week, but that may be all the employer can afford. The benefits take over and the employers are doing better with three days of work and two days of social welfare. They do not want to come back. There is evidence that such problems have arisen.

If this new sick pay system is introduced, certain people will take advantage of it. If it is not available, they will not abuse it. The low hanging fruit will be taken. I plead with the Minister and her officials to visit small business people. The troika should be made aware of what is happening to the backbone of our country. They do not get any grants and they set up enterprises with their own savings. They were supported by the banks for a number of years but now they are left high and dry. Make haste slowly. If there is a problem in the public service, it should be addressed. The Minister for Public Expenditure and Reform announced he would save €75 million but all he achieved was €3 million. We have to deal with the elephant in the room. I do not want to criticise ordinary public servants but the problem with sick play does not lie with private employers. Why use a sledgehammer to crack a chestnut? Deal with the problem fairly and honestly and consult widely before acting.

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