Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I think everybody knows that the SME sector was under pressure as a result of the disastrous policies pursued by the Fianna Fáil and Green Party Government where the economy crashed. If GDP goes down by 20%, is it any surprise that the number of SMEs in the economy will go down as well and that there are closures? Some of the CSO figures to which the Deputy referred are historic and the SME sector is building up again.

I have given a lot of encouragement, through the tax system, to the SME sector. It does not involve just construction, but the tourism industry, farming, retail and smaller service industries such as software industries, IT companies and financial services. We have concentrated efforts right across the sectors. The difference between the growing economy now and the economy we had during the Celtic tiger is that the Celtic tiger economy was dependent on one sector, which involved building, development and speculation on building, and the taxes it generated. The latest set of statistics show that all sectors are now growing and contributing to the 5% growth in GDP in 2014. We will continue that policy.

I agree with the Deputy on one area, which is something we inherited. The introduction of the PAYE allowance in 1980, while well-justified through the 1980s, created a differential between those paying PAYE and the self-employed, and that differential needs to be examined when resources come to hand. I agree with the Deputy's analysis in that space. It is not something that was created by this Government or magnified by it, but it is something of which it is aware. I will take her views into account when we are preparing the next budget.

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