Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

The negative consequences of the recession have hit our city centres and rural towns hardest. Towns play a vital role the social, cultural and economic life of communities throughout Ireland. Many shops and businesses, new enterprises and even some that have been in operation for decades or generations, have been unable to survive the downturn in economic activity, resulting in an increasing number of shop closures and vacant units in our town centres.

The retail sector combined with the wholesale sector play an important part in the domestic economy representing more than 50% of the workforce. In addition to the impact of the recession, upward-only rent, parking charges, commercial rates, rising energy costs and online trading are factors adversely contributing to the feasibility of small and medium-sized businesses in the retail sector. This, in turn, is threatening the fabric of our urban centres.

The Credit Review Office helps SMEs and farm borrowers who have an application for credit declined or reduced and who believe they have a feasible business proposition.

In budget 2014, the threshold has been increased from €500,000 to €3 million for loan appeals to the Credit Review Office from small to medium-sized enterprises, SMEs. This will facilitate requests from a broader range of SMEs, as well as large requests for refinancing.

A full suite of developmental business supports, totalling approximately €2 billion, is available from State bodies and agencies. The Government is developing a comprehensive communications strategy to increase awareness of these supports. This strategy will encompass the revised credit guarantee scheme, with a view to increasing awareness among SMEs. In an effort to improve the framework of credit supports available to SMEs, a new two-day programme with expert mentoring support is being introduced to enhance the financial and business capacity of SMEs. The objective of the initiative is to equip SMEs with the necessary tools to improve their ability to secure financing for their businesses. The programme will be launched on a pilot basis with 1,000 SMEs taking part next year. Work is ongoing with the European Investment Bank, EIB, in developing a tailored and customising trade finance initiative to support the growth of the export sector, to provide much-needed finance to exporters and to restore confidence, support trade and foster growth and employment. Its purpose is to address specific challenges of funding international trade through a broader suite of financial products.

The initial 30% relief available for investment under the employment and investment incentive is being removed from the high-earners restriction for a period of three years. This restriction limits the amount of tax reliefs that can be claimed by high-income individuals. The employment and investment initiative provides that a maximum of €150,000 per annum can be invested by an individual. Therefore, by lifting the restriction on the initial 30% relief, these investors should be encouraged to invest more funds in the employment and investment incentive and to improve the availability of funds to SMEs. The target is to increase investment in Irish SMEs that are focused on job creation and expansion. SMEs are the engine of economic growth, providing more than two thirds of employment in the State and the Government has charged the SMEs State bodies group with the task of implementing initiatives aimed at meeting the needs of Irish business for access to a wide range of bank and non-bank finance, as set out in the Action Plan for Jobs.

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