Dáil debates

Wednesday, 24 October 2012

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

 

7:55 pm

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on the Government amendment, which is focused on the important measures the Government can take to assist further small and medium size enterprises. Initially, I would like to focus on a key factor with which Fianna Fáil may not be familiar, the importance of political stability on economic confidence and growth. Political stability is a key factor within the Government's control which can assist economic growth and the business sector. Last year was the first year of economic growth after three years of economic contraction. Fine Gael and Labour are united in our core objectives of returning this country to growth and creating jobs for those who have been so badly affected by this economic crisis. Obviously, both parties have our own unique political positions, but we have an agreed programme for Government and we come to a shared Government position on issues in the best interests of the people of Ireland.

Despite the global economic downturn, Irish exports are still performing well. The services sector is leading the way, up 8% year on year in the second quarter. Foreign multinationals and global indigenous firms are continuing to invest and reinvest in Ireland. The recent announcements from the Kerry Group and the Paddy Power Group are a vote of confidence in the economy of the country, and this vote of confidence is by some of our own, which have now become multinational companies and yet choose Ireland to continue as their base. The success of our exports owes much to the significant competitiveness gains which have been achieved in recent years, and these gains are still ongoing. The European Commission is predicting Irish unit labour costs to improve by approximately 22% compared to the euro area over the period 2009 to 2013. The Government's business development agencies are working to assist SMEs that want to move into exporting. The foreign earnings deduction in last year's Finance Bill is a very good example of the assistance we can provide to companies which want to build export markets. The attraction of additional foreign direct investment jobs to Ireland is an essential support for driving the SME sector.

SMEs are the backbone of the domestic economy and the Government is acutely aware of the role the SME sector has to play in driving growth in the domestic economy. The Government is dealing with the employment challenge by delivering significant policy responses to provide a framework for SMEs and other companies across the country. These include the following: Pathways to Work, the Government's labour market activation strategy; the Action Plan for Jobs, which is designed to put in place the framework for job creation in all areas of the economy over the lifetime of this Government; the temporary partial credit guarantee scheme, which aims to provide credit to job-creating SMEs which currently struggle to get finance from the banks; and the SME lending targets of €21 billion over three years.

It is crucial that we continue to take steps to bring our public finances under control. Given the level of Exchequer spending on social welfare income support payments, it is incumbent on the Government and the Minister, Deputy Burton, to assess critically expenditure for her Department and, therefore, the issue of statutory sick pay also arises for consideration in that context. While no formal proposal on the introduction of a statutory sick pay scheme has yet been brought to Government, in any consideration of statutory sick pay there are a number of factors at play, including Exchequer savings, and these need to be balanced against the pressures to remain competitive in this challenging domestic and international marketplace being faced by SMEs. I know the Ministers, Deputies Burton and Bruton, are fully aware of the employers' concerns and the financial impact on employment costs and, by extension, unemployment levels if statutory sick pay were to be introduced, as well as the impact of this cost on SMEs in particular.

In conclusion, I assure the House that all the aspects of the budget will reflect the key role SMEs play in Ireland's economic future. We are actively working on measures for inclusion in the budget that will assist growth in the sector. We are also working to ensure the necessary fiscal adjustment impacts as little as possible on SMEs. We are acutely aware of the essential role SMEs play as drivers of employment creation across the country.

Comments

No comments

Log in or join to post a public comment.