Dáil debates

Wednesday, 24 October 2012

Statutory Sick Pay: Motion (Resumed) [Private Members]

 

7:05 pm

Photo of Dominic HanniganDominic Hannigan (Meath East, Labour) | Oireachtas source

As the Minister, Deputy Joan Burton, and Minister of State, Deputy Perry, noted in their speeches last night, the SME sector is the backbone of the economy in Ireland. We in Government recognise this. Since we came into office, we have been working hard to create the right environment for companies to grow. Within a year of taking office we introduced the Action Plan for Jobs. It contained 270 different action points that each Department would undertake to help businesses set up and grow.

It is a pity the party that led us into the economic mess is too busy focusing on what might happen instead of focusing on the positives happening in the economy. Employment in export-oriented companies has grown by 10,000 over the past year and a half. Exports from Irish companies are up. They reached €15.2 billion in 2011, the highest level they have ever reached. New supports have been set up for the SME sector. For instance, a temporary partial credit guarantee scheme was launched last week. It will benefit companies experiencing difficulties accessing credit from banks. It will see an additional €150 million being made available to SMEs every year which will probably lead to 1,000 new jobs. The microfinance loan fund has been open for applications since the start of the month. Some €40 million will be available over the next five years to micro businesses. This funding will give people a chance to see whether their idea might work and it will give them the time to develop it into a sustainable business. It is hoped that this scheme can create another 7,700 jobs in the next five years. Those are not the only changes that have been made.

The Minister, Deputy Joan Burton, has made it easier for employers to employ someone who is long-term unemployed. She has changed the PRSI rules so that employers can get an exemption from PRSI for this employee for up to 18 months. That is what has happened already and there other measures being looked at.

In the newspapers on Sunday, there were reports of a debt deal for SMEs. This would allow an SME to restructure its debt. It has been called "examinership light". It would allow the SME to become viable again, continue to trade and, in the process, save jobs. It was a commitment of my party in the programme for Government and we are working on making it happen. I have contacted the office of the Minister, Deputy Richard Burton about this and his Department is discussing it with the Company Law Review Group. It is one more example of how the Government commitment to ensuring that the SME sector works.

On a personal level, I am very much aware of the difficulties faced by SMEs.

I set up an SME 17 years ago and I recognise the difficulties that SMEs are faced with in the current economic crisis. I also recognise the talent out there and the fantastic people who are running their own companies and working for small companies. I have no doubt that it is these small businesses that will be at the vanguard of getting us out of the current economic recession.

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