John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I am glad to contribute to this debate. I acknowledge Deputy Calleary and Fianna Fáil for raising it.

This was a proposal in advance of last year's budget and here it is again. I welcome the Minister of State, Deputy Perry's important assertion last night that there is ongoing consultation but nothing has been brought to Government. Deputy Dara Murphy mentioned the debate was possibly a pre-emptive strike but let us take this positively as a form of the debate and the consultation.

The Ministers, Deputies Richard Bruton and Joan Burton, and the Minister of State, Deputy Perry, and those directly involved in this acknowledge that the 665,000 referred to who are employed form the engine room of the economy and also acknowledge that there are supports that have been put in place in recent times, such as the credit guarantee scheme, the microfinance scheme, the back-to-work enterprise allowance, revenue job assist, etc. I need not list them all here. I agree, as does everybody here on any side of this debate, that many small businesses are hanging on by their fingernails and if this proposal for sick pay is introduced - in the wrong way or possibly at all - it could be the tipping point for many of them. Everybody acknowledges that savings must be made but the way of doing it is important.

Only last week, I arranged for the Minister of State, Deputy Perry, meet the Chamber of Commerce in Claremorris where he heard at first hand the difficulties of small businesses, such as rates and car parking charges. All of these feed into the difficulties in businesses where there is a drop in footfall and plummeting turnover. There has been over-regulation, not only in this Government but in the previous Government as well, as I am sure Deputy Calleary would acknowledge. There were many agencies telling small businesses and shops that they need to do something one way while in the following week someone else from a different agency would tell them something different. The Government is committed to reducing the amount of red tape and regulation for small businesses and there are reports ongoing, but I acknowledge that we need to fast-track this so that these reliefs, as well as the existing supports, are brought forward quickly. Whatever consultation is taking place, it needs to consider carefully a cost analysis of the consequences of introducing this sick pay scheme. It also needs to consider the situation of small employers with two or three employees which would not have the capacity to pay this.

I was interested in the figures across Europe, where the absentee rate is 3.8% in the private sector. In Ireland, it is 2.5% and in small businesses, it is only 2%. This is not about pitching private sector against public sector, but there are a number of issues to be tackled in the public sector where absences are higher. With the goodwill of everybody on all sides of this House, I hope that this will not affect or cause further unemployment in small businesses.

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