Charlie McConalogue (Donegal North East, Fianna Fail) | Oireachtas source

I join my colleagues in supporting the motion put forward by Deputy Dara Calleary. The Government should welcome it because I have no doubt that, having assessed it, the Minister of State, Deputy English, will see that it is constructive and that it puts forward many real solutions to the problems experienced by self-employed people working throughout this country and by small and medium enterprises.

It has been mentioned by previous speakers that we have done very well in terms of the international and IDA-led investment into Ireland over the decades. That is something which many countries would seek to emulate and copy from us. However, there is not the same thirst internationally to copy the model we have in regard to how we treat the self-employed and small and medium enterprises. That is because, unfortunately, too many burdens have been put by the Government on those who are self-employed and those running small and medium enterprises, and that burden has continued to increase year on year over recent times.

Alongside that, as the recession developed and put many self-employed people and small businesses out of business, those people also came to realise there was no support in place for them. Many of these people had provided PAYE employment in the past. When they laid people off, they provided redundancy payments in many cases to people who were subsequently able to avail of the safety net of social welfare payments. However, those who were running these businesses and those who were self-employed found that they themselves were not able to avail of the safety net they expected to have from the State.

There has been a culture shock where, as those who were unemployed assess their experience at the hands of the State, in many cases they are thinking twice about whether they should actually look to set up businesses again or go back into self-employment.

That is a barrier to ensuring that the potential of many people is reached.

Deputy Calleary has put forward a number of real and valid suggestions which the Minister of State should take into account. They include increasing PRSI benefits for the self-employed, improved access to credit for the SME sector, ending the disparity in the tax treatment between the self-employed and PAYE workers, an extension to the credit guarantee scheme and a capital gains tax environment that encourages start-ups. Each of these proposals is well thought out and will make a real difference if embraced by the Government.

Much has been made of the proposals put forward and implemented in regard to the reform of county enterprise boards in their re-establishment as LEOs. Unfortunately, in too many cases, the reality has been that it has simply been a rebranding. Many businesses that need real support are not able to avail of it to the extent they require because the LEOs need to be better supported in terms of the resources they have to be able to engage with local businesses. Many people need ongoing mentoring.

In many cases with proper investment and an increase in the grants available LEOs could make a real difference in terms of getting new businesses and enterprises off the ground. Another key factor, which was mentioned by Deputy McGuinness, is the level of regulation on small businesses, such as those involved in retail. The increased red tape and paperwork they have to deal with on an ongoing basis is excruciating.

We all get regular feedback from those starting one, two or three people enterprises that they are trying to stay as small as possible rather than grow because of the difficulties and complications increased employment can create for a small enterprise. It is something that should not be the case and needs to be addressed urgently to ensure the potential of the economy is realised. Areas outside of cities will depend on those who are self-employed in small and medium enterprises to grow. It is to be hoped an economic recovery will take root, something which has not yet happened largely because the supports that small and medium enterprises and the self-employed sector need are not in place.

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