Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

On the issue of small business in general, I am very proud to be part of a Government that is focused on not taxing work. In a very difficult budget last year, to have managed not to increase income tax and tax on workers directly was quite a feat by the Minister for Finance. That is something that must be recognised by everyone.

One of the commitments in the programme for Government, which was also in the Fine Gael election manifesto, is to reduce red-tape and bureaucracy for businesses. In that context, I welcome many of the measures that have been introduced, which are having tangible effects. The amendment refers to the administrative burdens within the responsibility of the Department of Jobs, Enterprise and Innovation being reduced by 24% this year, yielding potential savings of €206 million per annum for businesses. These are real changes that are feeding down. Local authorities have frozen or reduced rates across the country. The Valuation Bill that is currently before the Seanad will also produce changes. These are the types of measures that must be implemented because small and medium sized businesses are the life blood of our economy. The multinationals are brilliant and the jobs they create are vital but in every town and village in this country there are small businesses that employ one to three people, sometimes family-based and they are absolutely crucial to the future of our economy.

The amendment very clearly sets out the supports that are available to businesses already. These include the seed capital scheme, the three year corporate tax exemption for new start-ups, the back to work enterprise allowance scheme for the self-employed, the employment and investment incentives scheme, the research and development tax credit scheme, the accelerated capital allowance scheme, the Revenue job assist scheme and the employer job PRSI incentive scheme. The amendment also refers to the temporary partial loan guarantee scheme and the microfinance scheme. These are all real and tangible supports which small and medium sized businesses can avail of and they show that this Government is pro-business and is determined to support those who are at the coalface of driving our economy.

Within our overall budget we must try to ensure, while making the adjustments to which we are committed, that people have money in their pockets to spend on services and goods, which will help small businesses. At present, that is a very difficult balance to strike. A major challenge for small businesses at present is accessing credit. The fall off in consumer spending and consumer confidence in general are also serious issues. These are challenges that businesses are grappling with at present.

Regarding the overall issue of sick pay, it is important to point out that no final decision has been made on these budgetary matters yet. It is good that we are having the opportunity to discuss it this evening. There is no question, and the Opposition cannot deny, that we have a deficit in the social insurance fund, from which illness benefit is paid. The deficit is increasing all of the time. It must be tackled and this proposed measure is an attempt to do that. However, imposing a statutory sick pay scheme on small and medium sized business will not necessarily address that issue. We need to examine the matter in a very informed way. The key phrase, which the Minister for Health has used in relation to the health sector, is 'fact-based analysis'. Decisions that are made must be based on fact and must be capable of standing up to scrutiny. That is absolutely crucial.

I would have some concerns regarding the introduction of a scheme of statutory sick pay. It might lead to a situation where an employer would be reluctant to employ somebody with a history of bad health. I would be concerned that some people would be at a disadvantage when applying for jobs. We must also look at how we challenge absenteeism, in both the public and private sectors.

I welcome the fact that the amendment points out that the process of consultation and consideration is not yet complete and that no formal proposals have been brought to Government yet. This gives all Members the opportunity to contribute to the debate about the broader issue of the budget and the impact it will have.

See this speech in context