Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Gabhaim mile buíochas leis an Cheann Comhairle.

Small businesses are under significant pressure. Foreign direct investment is seen as the glamorous part of the Government's enterprise policy. Micro businesses and small enterprises are seen as worthy elements of that policy, but they are the poor relations when it comes to effort and investment. Many small businesses are in serious danger. This week and in the next two weeks a number of profitable businesses in the children's soft toy play sector are due to close. These businesses are being killed by insurance industry dysfunction. They are profitable in every way and provide a great service, but they are being stuffed owing to the dysfunction in the insurance industry. The Government has been defeated by the vested interests in the sector, but these are good businesses that give people a livelihood. People have invested in them, but the businesses will disappear silently this week, next week and the week after and little is being done about it. Would it be possible for the Minister to come up with an emergency package to help these small businesses to get over the hump owing to the lack of an insurance function in order that when the sunny day arrives when the Government gets things together, they will be able to get insurance cover for their businesses?

Things are not looking well for small and medium-sized enterprises. In the last quarter of 2018 nine of the 12 confidence indicators showed a decline from the previous year. Labour costs are increasing owing to the dysfunction in the housing market, as workers are being forced to pay higher rents. There is the same problem of rent inflation in the commercial property sector. Congestion is nearly at crisis proportions throughout the country. Legal costs here are significantly higher than European comparators.

The appreciation of the euro-sterling exchange rate is hitting hard on small businesses throughout the country. As the Government has created a banking duopoly here, two banks have 85% of the market and they determine the price and availability of credit to small businesses. This morning, it was reported that there has been a significant reduction in credit to small businesses since 2016. Business rates are still ignoring whether a business is profitable. Businesses are really stuffed with regard to the infrastructure around the country. The infrastructure is missing in areas where small to medium-sized enterprises are more important to the economy: for example, the midlands, the Border region and the western part of the country. Retailers are migrating online at a fierce rate. The Irish are the biggest online shoppers, with Irish consumers having spent over €6.5 billion online in 2017 and online spending set to rise to €10 billion in 2020. Most of this money is leaving the country. Not only is it leaving the high street, it is also leaving the country and shops are being closed as a result.

We heard this week from the ESRI that the domestic economy is likely to lose approximately €100 billion of turnover and 80,000 jobs over the next ten years. We know that SMEs are by far more exposed with regard to Brexit than the foreign direct investment, FDI, sector. We know that SMEs in the regional parts of the country are far more exposed. The Government has been involved in the development of some level of mitigation with regard to this area but I would contend, as I believe would most people in small to medium-sized enterprises, that it is nowhere near enough to deal with the challenges they are facing.

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