Frank Feighan (Roscommon-South Leitrim, Fine Gael) | Oireachtas source

I thank the Minister for bringing the Bill before the House. I hope that some of that money has been left for schemes in Athleague and Four Roads but I know the money was very well spent in Bray, and I congratulate all concerned on the work done.

The Bill before the House has already passed all Stages in the Seanad. A few issues arise regarding small businesses, which are central to jobs growth and to the economy. I came from a small business background. There are 200,000 small businesses employing over 650,000 people in towns and cities throughout the country. Many businesses face huge challenges. The retail businesses will find it very difficult to survive because of the new challenges they face. The main street is under threat with the growth in the out of town shopping centres where Tesco, Lidl and Aldi are located. That is a fact of life but many small businesses will have to reinvent themselves, so to speak.

There is a huge legacy debt problem arising from the financial crisis. Businesses are about making money, and they do not survive if they do not make money. If people no longer buy newspapers or buy their lottery tickets online, and one is in competition with the out of town shops, one must diversify. The previous Government told us to invest in bricks and mortar because of tax incentives for homes and businesses but the people worst affected by that are the home owners in negative equity. A sizeable number of small businesses have diversified into investment properties and while the businesses are quite good, they cannot cover that legacy of debt. Something must be done in that regard because these are good businesses. The ones that have survived in the past three or four years, and God knows how they survived, are now lean and trim but they have plenty of muscle because they have survived the toughest economic recession this country has ever experienced.

In the past ten years the previous Government effectively forgot about the agriculture sector and the manufacturing sector. It told everyone that the way forward was through the banking sector, shares or whatever but we found out that was a bubble that should have been investigated by that Government.

It did not bother because there was money coming in from stamp duty and from VAT on building receipts and, effectively, that was keeping the Government going. Many of these small businesses are under extreme pressure and the Government must create a mechanism for them to deal with the legacy problems. It will save vital jobs. Some 500 or 600 jobs no longer come to small towns and villages, although that would be very welcome, but they come in twos, threes and fours. My business employed 30 staff, both part-time and full-time, and if it closed down, 30 people would be looking for a job. Small businesses are under much pressure but this Government is doing everything it can in very difficult times to address that.

The measures to support small businesses, including the Government's Action Plan for Jobs, must reduce the cost of an application for examinership and increase the number of small private companies which apply for examinership as a route out of difficulties. Businesses with a large potential for job creation are being held back by this legacy debt problem. I do not know how most of these businesses have survived.

The examinership for small private companies arises from a recommendation from the Company Law Review Group that the Companies Acts be amended to allow small private companies, meeting the criteria which define a "small company" in company law, the option to apply directly to the Circuit Court for examinership, which is very welcome. The Companies (Amendment) Act 1990 allows the remission of an examinership from the High Court to the Circuit Court subject to certain criteria. That is welcome because companies based outside Dublin will be able to apply for examinership in their local Circuit Court, reducing costs and travel time. Over the years, we had this love affair with going to the city but in doing so one must stay overnight in Dublin and the cost of getting a solicitor and barrister from Dublin is enormous. It will now be possible to deal with a local issue in a local area, which is very welcome.

The Bill provides for the electronic filing of accounts with the Companies Registration Office. I registered my properties with Revenue yesterday. I was putting it off until the last moment but I found it very efficient and informative. I know there were difficulties but I found it very easy. It was reassuring to know there was a helpline, which I would have used it if I had found the process difficult.

I refer to the levy on statutory auditors or audit firms. We must look at the costs for businesses, including the cost of rates. I lease a business and I am delighted to have somebody in the newsagent shop but the rates on the business amount to six months rent. That is unsustainable and something must be done about rates for small businesses because it is strangling them. Everywhere one goes one hears people say it is not their problem or that they are looking at them, although I believe this Government is looking at them. However, it is a ham-fisted way to deal with things. In 1999, I was probably one of the few business people on the local authority and I told people then it was unsustainable. Every time money has to be put into water services or whatever, the local authority decides to put another few cent on rates. It is unsustainable.

If one walks down streets in Bray, Boyle, Sligo or Dublin, there are fewer shops paying rates because shops have gone out of existence. It is worrying that there is a proliferation of charity shops on main streets, which are very nice to go into, but I am not sure they pay rates. Many bookies are under pressure because many people are gambling online or on their mobile telephones. There has been a move to the black economy in that hairdressers go to one's house or invite people to their homes and I am not sure if money is getting to the Exchequer. Something needs to be done for small businesses in terms of rates and in this Bill to get them back working. I thank the Minister and his Department, which has been very efficient. This is another step to get people back to work.

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