Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

Last night, the Minister of State, Deputy English, said that Irish businesses need to start to survive and scale up. The principal complaint I receive from self-employed traders and small business owners relates to access to credit. How can they start, never mind survive and scale up, without the finance to do so? Over 90% of small businesses are dependent on traditional methods of loans and finance. Only this month I called on the Minister for Finance to meet the banks and urge them to pass on the lower interest rates they are receiving from the European Central Bank to mortgage holders. Again tonight I call on the Minister of State to urge the banks to provide real credit opportunities to small and medium-sized enterprises.

This Government has done a good deal and will continue to do much. I know that Microfinance Ireland, the online vouchers and local enterprise offices are aiding small and medium-sized enterprises but I am aware of an early stage start-up that has received a large grant or investment from Enterprise Ireland. The start-up employs six people and, with the right supports, it will continue to grow and employ more. The owner applied for a small business loan but was rejected by the banks because the business was pre-revenue. How can it become revenue-generating without the finance and supports to allow it to grow and prosper? It is unacceptable for the banks to play hardball when two thirds of all new Irish jobs come from start-ups and the tax that the self-employed pay is going towards the bank bailout.

The second biggest complaint I receive in this area relates to the lack of financial support for small business owners if they go out of business, despite the fact that they pay PRSI. The self-employed generate employment locally, pay PRSI and the universal social charge. If a business does not succeed the employees receive unemployment assistance but the self-employed do not. I am keen to see this addressed in the next budget. Our economy is moving in the right direction but we need to do more.

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