James Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on the Bill, which we all hope will have positive implications for the establishment of small businesses throughout the country. The Bill is part of a series of measures to boost small and micro-businesses. It aims to create a centre of excellence within Enterprise Ireland and develop new thinking and best practice with regard to delivering supports for small and micro-businesses. It will establish local enterprise offices, LEOs, and create a first-stop shop in local authorities to support small and micro-business at local level within the framework of an integrated national network.

The Bill will combine enterprise support for business at local level with the business support service and expertise of local authorities to create the best possible local environment for small businesses. A strong network in support of entrepreneurship will be developed through working with local businesses and the wider community. All of these measures are designed to increase the record of job creation and innovation in the sector, which in turn will increase exports from micro- and small businesses. The intention of the Government is to create a national connected approach with streamlined delivery. This should ensure more efficient use of resources, create a clearer picture of the support available and provide local firms with a more developed support system, including support at national level.

The Bill was outlined in the 2011 programme for Government, which stated that we would merge local enterprise and job support functions of local, regional and national agencies into a single business and enterprise unit in local authorities to allow streamlining of local job creation and support functions and increase shared knowledge, capability and resources while saving on administration costs. This is the intention of the approach the Government is taking.

The decision to dissolve the county enterprise boards and transfer their assets, liabilities and functions to Enterprise Ireland will ensure all small and micro-enterprises will be able to access the support they need to establish and expand their operations in the quickest and most effective way possible. This reform of our business support infrastructure is the first radical overhaul of how we deliver for our entrepreneurs since the county enterprise boards were established 20 years ago. The new model will see local authorities providing services on behalf of Enterprise Ireland through the LEOs, which will act as one-stop shops providing support and business development services to the highest possible standards tailored to our business leaders of the future. By making advice and guidance easily available we can help our entrepreneurs to chart the best way forward for real success down the line. The changes being made now will see local authorities, Enterprise Ireland and the LEOs all working together to provide a service which is second to none, has smaller businesses at the heart of everything it does and harnesses the know-how of all of the arms of the State business support infrastructure to maximum effect.

Small and micro-businesses are the key to local and community economic development and if properly supported will lead to increased commercial success in the midlands. More than 86,000 small businesses throughout the country provide employment for more than 700,000 workers and generate €90 billion in turnover annually. The owners of these businesses have demonstrated their willingness to invest in their communities, provide vital employment and generate enterprise. Government policy must reflect the success of such ventures by being supportive of new business ideas and ensuring the vital flow of lending is in place.

This brings me to an important issue which is dear to my heart. It is important that we get the banks lending again, as credit is the lifeblood of the market economy. In recent years businesses have been starved of credit facilities and many good businesses are still going to the wall as a result. Since taking over the wrecked affairs of the State in 2011 the Government has been doing its best to restore the flow of credit to the business sector through financial supports for businesses and the Action Plan for Jobs. We have continuously pointed the way forward by placing job protection and creation at the heart of our recovery plans. The financial supports for starting one's own business, growing businesses and accessing credit are the main ingredients of our stimulus package to rebuild the economy.

If we are serious about supporting and developing small business enterprises we must examine over-regulation, red tape and the form-filling required for various Government bodies. This is expensive time-wasting and stifles small businesses. I plead with the Minister of State, Deputy Perry, to step up to the mark, which I have no doubt he will, demand a reduction in the administrative burden of regulation on small businesses, and let it be known that the new LEOs will have to deal with less bureaucracy and red tape from various Government agencies and that they will be allowed greater flexibility in awarding grants and determining their limits. I am disappointed with IDA Ireland because, based on responses to recent parliamentary questions, it does not visit every county or promote each county equally. I would like to see the Minister of State taking on this matter. I would not like to see the new LEOs being restricted in the type of business they can support.

When discussing small and medium enterprises, the agrifood and creative sectors are often overlooked. Local farmers, food processing industries and auxiliary services provide local jobs and play an important role in many rural communities throughout the country. Almost 200,000 people depend on this industry for employment. These are very important businesses and they struggle with the same obstacles as businesses in other sectors, such as high energy costs, high rates and excessive bureaucracy and red tape.

We need to move faster to overhaul the myriad of agencies involved in food safety inspection and regulation with a view to establishing a single food monitoring body. This would not only reduce red tape for small businesses but would also ensure efficiency and consistency in monitoring procedures. Such a single food monitoring body could also be responsible for the long-overdue food labelling legislation to support producers and processors who adhere to strict quality and safety regulations but struggle to compete with imports of questionable quality.

The Crafts Council of Ireland and Craft Northern Ireland designated 2011 as a year of craft. This gave us a great insight into the richness and vitality of the craft industry throughout the island of Ireland. Refined over centuries, the craft and creative industries sector is of immense importance to our economic activity as well as our culture. A significant number of new jobs could be created in this sector if proper initiatives and incentive schemes were put in place by the new LEOs.

What impact will the new LEOs have on community-owned enterprise centres and their contribution in promoting enterprise and jobs?

Many people in every county have innovative ideas that could be developed into craft enterprises. As a country, we have a distinctive and renowned heritage in craftsmanship, and Irish craft is precious and unique. As I have said many times previously, if investment was accelerated in this area, further development would directly contribute millions of euro to our export and domestic markets.

It is only by encouraging entrepreneurs to follow through on new business ideas and to take the necessary risks involved in setting up small or micro-businesses that the essential regeneration of our local economies will take place. While rationalisation of State agencies may be challenging, it is to be welcomed.

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