Séamus Kirk (Louth, Fianna Fail) | Oireachtas source

Fianna Fáil calls for the establishment of a State-sponsored enterprise bank as a means of addressing the permanent funding gap in the banking sector. This was a commitment in the programme for Government but it has not been delivered. Efforts to encourage non-bank funding has been completely inadequate to date. The high profile announcements about seed capital, loan guarantees and micro-finance have not been matched by delivery of funding. The growth in money lending identified by the recent Central Bank report highlights the need for accessible credit for low income families in particular. Small and medium enterprises are the lifeblood of the economy, representing 99.8% of active enterprise, nearly 70% of all employment in the State and 46% of gross value added in the economy.

Employment in SMEs for the total business economy fell from 1,045,000 in 2006 to 839,000 in 2011 or 80.3% of the 2006 levels. The construction sector was most badly affected where SME employment in 2011 was only 38.9% of the 2006 level, with almost 120,000 job losses. The domestic SME sector is diverse in nature and employs workers with a much wider range of skills than the multinational sector. SMEs can range from a small welding business to a local supermarket employing 100 people. The jobs crisis cannot be solved by focusing on foreign direct investment alone. By supporting the SME sector we are ensuring job opportunities for those with traditional skills as well as for people with technical qualifications.

Another recent budget proposal for a statutory sick pay scheme is impacting on small businesses in County Louth. Viable small businesses in the county are already being strangled by a deepening credit crisis in the sector. A statutory sick pay scheme can only lead to higher employment costs for the 200,000 small businesses in this country employing more than 655,000 people. To impose higher costs on SMEs at a time of an escalating credit crisis in the sector can only mean job losses.

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