Niall Collins (Limerick, Fianna Fail) | Oireachtas source

I am delighted to take part in this debate on the issues affecting small businesses, which are an important part of our economy and offer great potential for job creation in small communities and large urban centres. What has the Government got against Limerick and the mid-west in terms of job creation? The recent announcements from Kerry Group and Paddy Power were welcome but the new jobs will be concentrated along the east coast. The mid-west and the Limerick region have not benefited from any recent significant jobs announcements since the Labour Party and Fine Gael came into office. PayPal decided to locate in County Louth after considering both that county and the former Dell facility in Raheen. Limerick expects the delivery of a major employer at the earliest opportunity.

I commend Deputy Calleary on tabling this motion because it is very important. I wish to share with the House correspondence I have received on the issues arising from it. Correspondence I received from Shannonview Retail Limited which stated:

As a legitimate business in your constituency I would ask for your support to halt the proposal from Minister Burton to make me responsible for my employees' sick pay. We employ 40 full time / part time staff. Rather than support attendance this is more likely to encourage absence as the employee knows that I will have to pay their wages if they don't attend for work.

Correspondence from Mike Hynan, a coach company in Limerick, referred to the sick pay proposal and:

the impact it will have on small businesses, on employment and job creation.

I established my business eighteen years ago and we are based in Limerick We currently employ fourteen in both a part time and full time capacity.

It has been suggested that the cost of illness benefit to the State could be reduced if some of the cost burden was placed on employers, i.e. for employers to pay disability pay for the first four weeks associated with any period of illness.

I believe that such a policy change will have serious cost implications for my business and it amounts to an additional flat tax on employment.

Correspondence from Shellfish De La Mer Ltd., of Castletownbere in County Cork, stated:

The transfer of social welfare costs onto employers will force many to eliminate or reduce current sick pay benefits where these are being paid, implement further cost-cutting measures or reduce employment. It will put jobs at risk and add further pressure to an already stressed social welfare system. It is the last thing the economy needs at this time.

Correspondence from Limerick Chamber stated:

The restoration of cost competitiveness is central to any economic recovery. If Irish enterprises are to compete successfully for business in international markets, then cost competitiveness is one of the key determinants in achieving success.

It is imperative that the Government does not implement mooted plans of the Department of Social Protection to transfer these costs on to business. In our view the DSP should focus on saving costs elsewhere rather than simply passing additional burdens on to the job creating tax generating section of the economy.

I am sure the Deputies opposite have received similar correspondence.

We also need to address other issues affecting small businesses, including in particular commercial rates. The long promised valuations Bill has been poorly received by the retail and business community.

The Vintners Federation of Ireland was quoted recently as saying it is essentially a new Bill written by the Valuation Office for the Valuation Office and that it addressed none of the legitimate concerns of ratepayers. It does not address the issue of inability to pay or of a change of economic circumstances in the business and does not address the issue of fairness and equity in rates. As the Minister of State is aware, small businesses are key to the economy, to employment and to keeping our communities alive. We must listen to what these people are telling us.

I have not had the opportunity to mention the old thorny issue of upward-only rent reviews. I have in my possession a letter which was circulated around the time of the election in regard to these reviews and I regret that I cannot bring it to the attention of the Dáil tonight. Perhaps I can on some other occasion.

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