Michael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

In the north west of Ireland, owners and employees of small and medium-sized businesses smile ruefully when they hear the oft-expressed opinion of Government spokespersons that the economy is growing and employment is being created. They look around at closing shops, pubs, cafes and commercial businesses, or see businesses barely surviving on hope of improvement, and they wonder when their economy, the real economy, will begin to improve. They see previously self-employed people who paid tax and social welfare in respect of their employees now virtually destitute with the closure of their businesses. They clearly see a picture that is at odds with the picture being painted by Government in the run-up to an election.

As I have only seven minutes to speak on this, I will confine my remarks to the need to radically reform the business rating system and utility costs for business. The system for calculating business rates is causing untold damage to small businesses throughout the land. The system is regressive, it is not linked in any way to profit or income, it is a notional figure that bears no relationship to reality and it is strangling small businesses. I know several small businesses in Sligo, Leitrim, Cavan and Donegal that are simply unable to continue because the rates burden added to the already heavy water and waste collection charges cannot be met from the reduced customer footfall to their businesses. What is the sense of developing new incentives when the current illogical Government finance extraction schemes are sucking the life blood from these enterprises?

Utility costs are a major impediment to the development and growth of SMEs in Ireland. The Forfás Cost of Doing Business in Ireland report, released in 2013, highlighted the significant costs facing SMEs and affecting their competitiveness and that of the State. It found that Ireland is the fourth most expensive country in the euro area for diesel. Electricity costs for SMEs are the fourth highest among the 15 countries in the euro area. Waste costs remain high, particularly landfill fees. While the cost of a bundle of telephone calls is relatively competitive, Ireland is expensive in terms of broadband costs, particularly when broadband quality is considered. International research shows that the Internet contributes up to 6% of GDP in advanced economies and most of the economic value created occurs outside the information technology sector, with 75% of the benefits captured by companies in more traditional industries. The research also found that the Internet created 2.6 jobs for every one lost due to technology-related efficiencies. Broadband is considered an essential infrastructure priority for enterprise growth.

Fairness dictates that businesses need to be better supported and penalised less in all regions. To do this, all regions need to have a strong infrastructure base enabling them to compete, as well as to attract and retain investment and jobs. Since the liberalisation of the telecommunications market, private investment has been driving the roll-out of broadband infrastructure and services nationally, and internationally. Just as with other types of infrastructure provision, population density is a determinant of the cost of delivery and potential returns.

Does the Acting Chair want me to finish off with one minute to go?

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