Dáil debates

Wednesday, 22 April 2015

Self-Employed and the SME Sector: Motion (Resumed) [Private Members]

 

4:25 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak and compliment Deputy Calleary on tabling this timely motion. I want to deal with a number of issues. I refer to the self-employed and the difficulties they experience if they run into trouble and have to look for social welfare. An innovative idea was introduced in 1988 by the then Fianna Fáil Government, that is, PRSI for the self-employed. At that time, the idea was vilified by many people, including some of the parties opposite and some of the representatives groups of industry, but it has stood the test of time and was a major achievement.

In the United Kingdom, a decision was made by the courts on PRSI for the self-employed. I understand the Attorney General and the Department of Social Protection examined a report that was written some two and a half years ago. I spoke about it during a debate on the budget in December 2012. At the time the Minister's office said it would come back to me as to what decision was made. I can say that no decision has been made. I ask the Minister of State to try to find out from his Government colleagues the status of the report and what they intend to do about the self-employed.

We need to address a significant issue, namely, the ability of people to access social welfare when they run into difficulties. If we are serious about it, we have to consider small and medium industries all over the country. I have a number of issues in my constituency. The decision to cut Leader funding was disastrous. The Leader companies in my area and throughout the country have played a major part in helping people to start businesses. They have provided them with resources, facilities and encouragement to get into business. The enterprise fund that was established through that has played a significant part in getting people into industry.

At this stage the Government must re-examine this issue. It has done a great disservice to rural areas.

Let us consider the broadband issue, about which my colleague Deputy Kelleher spoke. It is one of the greatest jokes of all time. In the 1950s, when we had not two pennies to rub together, we were able to bring electricity to every community in the country. In the 1970s and early 1980s, the then Minister, Mr. Albert Reynolds, did a significant job to ensure telecommunications services were provided and telephones were installed. We must take broadband as seriously. The only solution is a fibre cable, and it must be brought to every single community in the country. It is no longer acceptable to have broadband in the provincial town or market town when there is not even mobile telephone coverage or broadband in the village nearby. Farmers, agricultural contractors, building contractors and others who have businesses in the areas affected must have broadband of good quality. It is to our detriment and shame that we do not have a proper broadband service in their communities.

I have examined all the possibilities for broadband. Technology has moved on apace. Over recent years, everybody has been saying there is wireless capability, 3G and 4G, but the reality is that the State must bring a fibre cable to each and every community. I welcome the joint initiative between Vodafone and the ESB, but they will only come to some of the 50 towns that already have very decent broadband. What is occurring is appalling.

A number of other issues arise. Many people talk about credit for SMEs. I am aghast that the Members opposite say we have some cheek to bring this issue before the House because the problem is affecting constituents throughout the country, be it in Dublin, Cork, the most rural areas or the most urban areas.

There are a number of areas that we must examine. I have had much correspondence on this. In some villages in my area, including Churchtown in north Cork, Boherbue, Newmarket and Macroom, nursing homes have been set up. Such homes, which have been built around the country, are providing very valuable employment in their communities and a service to the State by providing excellent care to the elderly. Many of the operators have spoken to me about the cost of compliance and the costs associated with trying to keep the businesses going.

Community crèches were built in the good times. I was involved with many of the projects around the country and am delighted to have played my part in ensuring the availability of funding but I realise a major issue arises regarding rates and their application. We discussed a Bill recently on rates. Deputy Fleming tried very hard to abolish rates for community crèches because they are providing care for young people. This must be considered. The crèches are run on a shoestring, as I know from having met many of the managers and operators, but they are run as businesses. These businesses are providing part-time and full-time employment, as are the nursing homes and other organisations. They must all be examined in terms of what they are contributing to society.

The first line we hear from some of the successful food businesses is that it is as if we bring in regulation from Europe and gold-plate it in the Department before applying it in the communities and to individuals. An issue arises in regard to the overzealous way in which some officials in the HSE seek compliance with the regulations. I refer to health and safety regulations, in the first instance, but also to food regulations. Anybody preparing and selling food in the food industry understands the necessity of having proper hygiene records and so forth. They would not be in business unless they had an absolute understanding of this but the overzealous regulation incurs a cost. Some small businesses talk about spending thousands of euro to comply with regulations.

A farm is a small to medium-sized industry. Farms are employing people, directly and indirectly, and employees include agricultural contractors. Farmers' outlay on machinery and so forth and the headaches they must endure trying to keep their businesses going must be acknowledged. Farms must be acknowledged as businesses.

At a public meeting in Wexford last week, people were talking about the need for a one-stop shop. A plethora of agencies exists for setting up and mentoring businesses and for organising. There should be a one-stop shop or single State apparatus to offer advice to businesses on what to do and what not to do. The cost of credit and unavailability of credit for SMEs comprise an issue. The SMEs are crying out for credit.

Where is the report on the self-employed that was on the Minister's desk some two and a half years ago? It was produced following on from what happened in the United Kingdom. Has anything been done about the report or has it been kicked to touch? The broadband issue is as serious within miles of the city as it is within hundreds of miles of the city. It is not acceptable. A fibre-optic cable must be brought to each and every community. The Government has dismantled the Leader funding, which was playing a massive part in rural areas. When I chaired a regulatory committee, we examined the effect of a reduction in regulations for SMEs and we saw what other countries were doing to reduce the red tape and bureaucracy. The red tape and bureaucracy are completely insane. Every single reform that occurs implies more bureaucracy, red tape, oversight and pen pushing.

We must address the issues of the self-employed, broadband, Leader funding and red tape. I could go on for hours.

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