Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank Deputy Keating. This evening, we note the loss of Mr. Hugh Cooney, the former chairman of Enterprise Ireland, who did massive work for this country in that role and, more particularly in the past number of weeks, as an advocate of better health care particularly for men. I pay tribute to him and mark his passing. We had the Enterprise Ireland management team with us today at the enterprise committee and they reflected on a very successful 2014. Many of the initiatives that drove that success were ideas or visions that Mr. Cooney, as chairman, put in place. It is a very sad night and we wish his family, friends and colleagues every good wish at this incredibly difficult time.

The coverage of last week's budget focused on some welcome initiatives for the self-employed, namely, the tax-free allowance and some other issues, but it gave the impression that it was a bumper budget, particularly for the self-employed, when the reality is very different. A comparison of the likely outturn of the Department of Jobs, Enterprise and Innovation's budget this year versus what is promised next year shows a €44 million cut. There is no increase in the budget for the new local enterprise offices, even though they have all hit the ground running in their localities and are generating more activity. That was some of the feedback from our meeting today.

There has also been a cut in capital funding for Údarás na Gaeltachta and there is significant confusion and frustration in Gaeltacht communities regarding the role of Údarás, its interaction with other agencies and the lack of support available to Gaeltacht areas from other enterprise agencies.

The capital gains reduction for entrepreneurs is welcome, but it is still far off the mark compared with what is happening in Northern Ireland and in England. We are increasingly in competition with the Six Counties and with England, Scotland and Wales for people to establish businesses. The tax arrangements in those other jurisdictions are far stronger and more encouraging than those here.

The employment investment incentive scheme continues to be a drag and continues not to work. We are continuing to tinker with it, but it is still not taking hold. The Minister of State knows that too.

There is the whole issue around the credit guarantee scheme amendment Bill. The credit guarantee scheme was first independently identified as having issues in October 2012, even though we had been pointing out those issues for some time. We are three years in now. I know the delay is not in the Department, but, apparently, in the drafting office in the Attorney General's office. However, it is not good enough, because there are specific provisions within the credit guarantee scheme amendment Bill to allow businesses that are restructuring their finance because the banks are exiting the market to access the guarantee fund. They cannot do that until this legislation is passed. Many businesses - the Minister of State and the Chairman do not need to be told this - are being forced into a position of refinancing their packages because their banks are exiting. There are so many issues.

The changes to employer PRSI go nowhere towards covering the increase in the minimum wage and many employers are going to be out of pocket. We welcome the increase, but the manner in which the changes to PRSI are being made will leave many employers out of pocket. I encourage the Minister of State to look at that in the context of the Social Welfare Bill. Finally, when we look at the range submitted by the Department and the Minister of State as part of the ministerial team to the Department of Finance, we have to ask about the influence of the Department of Jobs, Enterprise and Innovation at the Department of Finance. Given that many of the proposals the Department of Jobs, Enterprise and Innovation submitted came from our committee or from its engagement with businesses all over the country, an engagement that has not been had in the Department of Finance, there is a great deal of frustration at issues like finance and supports within the business community at the moment. There is a need for a signal that those frustrations will be taken seriously.

See this speech in context