Finian McGrath (Dublin North Central, Independent) | Oireachtas source

I thank the Ceann Comhairle for the opportunity to speak on the County Enterprise Boards (Dissolution) Bill. I welcome the debate and the chance to focus on jobs and an efficient use of our resources that can create more jobs in this country. Let there be no mistake: everyone's focus in the House has got to be on creating employment in order to improve the economy. We need to get people into work and back to work and into the tax net to ensure we can have health and educational services for our people, which they deserve as a right. That is what the Bill should be about and, hopefully, it will be about that. That is the bottom line. Otherwise we come in here and are just talking hot air. We need reform, change and efficiency, but above all we need radical new ideas in regard to the creation of employment. The debate should also be about our 28% youth unemployment and the emerging gap between rich and poor in this country. It should also be about our young emigrants who are forced to travel abroad for work. We need to focus on this area and develop and assist our young people, many of whom are very talented. We need to stop putting barriers in the way of job creation, such as high rents, crazy commercial charges, and the rejection last night of the Companies (Amendment) Bill 2014 proposed by my colleague, Deputy Stephen S. Donnelly. These were ideas put forward to try to assist in the area of enterprise and job creation.

I mentioned earlier that youth unemployment was at 28% in this country. That is a figure we do not hear enough of when the unemployment figures are given. That means that 60,000 young people in Ireland are out of work and have no jobs. Across the European Union the number is 5.6 million. Many of these unemployed young people are very creative, many are highly educated and many are not, which is another issue on which we have to focus. In terms of education, we need to put the focus on assisting young people in staying in the system as long as possible to ensure they do not become long-term unemployed and end up on social welfare. This is an issue on which the Government must focus.

There are some good things happening in society. I welcome the fact that more than 90% of our enterprise base is made up of small and medium-sized companies which, between them, employ in the region of 622,000 people and contribute €10 billion to the Exchequer. Those are other figures we do not hear about. I pay tribute to those 622,000 people and their contribution to the Exchequer of €10 billion out of a turnover of €91 billion. We need to nurture and develop this sector. There should be none of the arrogance we see at times with the big boys coming in and creating 100, 200 or 300 jobs, when small companies, factories, businesses, restaurants or pubs are employing ten, 15 or 20 people. We should not look down our nose at those people because they contribute €10 billion to the Exchequer.

As my colleagues have done, I wish to focus on the need for investment, particularly on the north side of Dublin. There are many areas north of Dublin City that are black spots for unemployment. We need to focus resources on those areas. I have been a voluntary board member and director of the Northside Centre for the Unemployed in Coolock for the past 20 years. A good deal of our focus is on helping young unemployed and other unemployed people to get into the jobs market and assisting them in receiving education and developing their skills. This is something very positive. However, we need support for that work and we need to do it in a professional manner. I urge the Minister to keep a close eye on the need for developing small businesses on the north side of Dublin.

It is clear that the Bill will get rid of the county enterprise boards, which includes the city enterprise boards. These will be replaced by Enterprise Ireland, which has a good record. Local enterprise offices will be run by local authorities. I commend the staff at Enterprise Ireland for their magnificent work in developing new ideas and job creation. Enterprise Ireland already exists under the Industrial Development (Enterprise Ireland) Act 1998. The intent of the legislation is to create a first-stop shop for entrepreneurs at local level while providing a nationwide integrated system. Many people who have ideas need to be able to speak to somebody in the local area who will point them in the right direction. There is a need also for the broader picture, a national integrated system.

The Bill is an attempt to reform and bring together the micro-enterprise and small business supports provided by county enterprise boards, Enterprise Ireland and local authorities. It also removes anomalies in the system and will ensure all micro- and small businesses can access support.

It is important to establish a centre of excellence in Enterprise Ireland with responsibility for setting policy and monitoring and ensuring delivery of world-class support for micro- and small businesses in a consistent manner nationwide. The centre of excellence is a positive idea. If people bring forward positive proposals that have anything to do with job creation, I will support them, regardless of party politics. As elements beyond the dissolution of county enterprise boards such as the centre of excellence and specific targets such as increasing the number of start-ups, the five-year survival rate among start-ups, the number of start-ups created by women, exports from micro- and small business and job creation are not specifically mentioned, we need to focus on them. The focus must be on the creation of jobs and enterprise.

The proposal for change came from the McCarthy report, commonly known as an bord snip nua, in 2009. It recommended that the functions of enterprise boards be transferred completely to Enterprise Ireland. The local government efficiency review group's report published in 2010 recommended that enterprise boards be merged with local authorities. I did not necessarily agree with everything proposed by Dr. Colm McCarthy and an bord snip nua, but in this case, I like the idea of transferring it completely to Enterprise Ireland because of its past record. It is important to develop ideas in an organisation such as Enterprise Ireland which is responsible for the development and growth of Irish enterprises in world markets through putting the focus on the promotion of business exports. Enterprise Ireland primarily deals with larger businesses than those dealt with by the county enterprise boards in that it provides funding and support for businesses with more than ten staff members.

Last week a young woman came into my clinic in Donnycarney. There are two people involved in a small business, with commercial rates last year of approximately €2,000. They have increased to €4,000 this year. What is going on in Dublin City Council? This is a woman who is providing a service and trying to ensure she stays within system by paying VAT, PAYE and all other taxes. Within a couple of hundred metres, people are undercutting her prices by 30% or 40%. The business only has two people, but it could increase to five if she was given a chance. We should not always think big; we should also think small. There are 622,000 people employed in small businesses, which number could be developed further. We should not put barriers in front of small business; we should give them a break.

One of the concerns about the legislation is that the dissolution of the county enterprise boards will reduce the important connections in the local business community that were fostered by the independent nature of county enterprise boards and their membership. We must examine this issue carefully. It is important, when introducing reform and changes, that we do not lose contact with the local base. I encourage the Minister of State to be on his guard and vigilant about this. We do not want to create a gap between the person on the ground and Enterprise Ireland; we do not want to lose touch.

Section 6 provides for the transfer of the existing functions of county enterprise boards to Enterprise Ireland, which I support. Section 8 provides for the transfer of rights and liabilities of a county enterprise board to Enterprise Ireland. It also provides that, in the event of an action to sue, recover or enforce, Enterprise Ireland may do so in its own name without the need to give notice of the transfer to the person whose right or liability is transferred. This is a sensible section.

Section 9 will allow any claim for loss or injury alleged to have been suffered during the performance of county enterprise board functions to now lie against Enterprise Ireland. Section 10 will ensure anything commenced by a county enterprise board such as loan agreements, grants and equity investments will not fall on the transfer to Enterprise Ireland of the functions, assets and liabilities of county enterprise boards.

Section 11 empowers the Minister to designate staff of a county enterprise board to Forfás, Enterprise Ireland or a local authority. This is important because we need to ensure we have quality personnel dealing with these issues on the front line to assist local enterprises.

As well as passing this important legislation, it is also important that when we examine the ethos, we focus on the priority of creating sustainable jobs in local communities. We must not forget the SME sector. In the coming weeks I would like the Government to have a vision of creating jobs. It must focus on a clear objective, from which we should not shy away. Notwithstanding the economic crisis and what is happening with the banks, we should try to return to full employment. I do not think the Government understands we must do something about the debt crisis which is choking society and the economy. I have major worries about it and urge the Minister for Finance to go back to the European Union and demand some sort of a deal, as otherwise we will not be able to move on. We must also tackle the problem of excessive household debt and mortgage arrears which is not be sustainable.

I referred to the education system and early school leavers. We must give opportunities to children to live and work at home and include those who must emigrate.

At all times, we must have well managed public finances. We must learn the lessons of the past because without the public finances being under effective control and a stable and effective banking system we will not be able to develop the economy.

We should never fail to use the resources we develop, through the people paying taxes, to protect the vulnerable in society. We cannot take our eye off the ball in tackling poverty and developing public services for citizens who deserve public services. That issue is linked with the Bill. The figure of €10 billion created by small businesses for the Exchequer could have a major impact.

We must be careful, in supporting the legislation, not to become dependent on foreign direct investment. The world is now a small place and a company which may have 300 workers in Cork, Galway or Dublin may relocate in the morning to India or another country where costs are low. The SME sector must be the engine room. In this regard, the Minister of State must not take his eye off the ball and be carried away with big photo calls and announcements of 300 new jobs in Cork. In two years time the company concerned may relocate to another part of the world.

There must be effective management of the public finances. I accept that process has started, but we must be sure that what happened in the past will not happen again.

We should go back to the notion of public service. There is nothing wrong with that.

The staff working in Enterprise Ireland, doing a great job in formulating ideas and assisting businesses, are indicative of good public service. There are many good public servants out there who do a fantastic job that should be recognised. That is true in the health and educational sectors, but with this legislation it relates to enterprise boards and similar places. They have people who are working hard to regenerate the economy and get people back to work.

I welcome this debate, which is very important. As well as talking about this legislation, we must be constantly formulating new ideas and examining the barriers for people on the ground who are trying to create an extra two or three jobs in a sector. I make no apologies for asking people to buy or shop local and do their best to get products in the local community. Give everybody a break. An extra €10 or €20 spent by everybody in a local shop, supermarket or business can create 10,000 jobs. That is a conservative figure but it could be achieved if everybody spent an extra €10 or €20 per week in local shops. The people with a few bob - those who are reasonably well off in society - should not be afraid to spend an extra few bob, as that will create an impact in the local economy. When that happens it helps businesses create an extra job or two, and it would be fantastic for enterprise and job creation if we could create a ripple effect from this around the country.

I encourage people to formulate new ideas and I urge the Government to listen to any ideas rather than blowing them out of the water. If somebody brings something sensible to the table the Government should consider it. It is important to say that.

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