Michael Lowry (Tipperary, Independent) | Oireachtas source

This House's main priority is saving lives and jobs. We have heard details of a number of schemes to ease the path to business recovery. Most businesses can avail of a range of schemes. Although these schemes are, as of yet, untested, they have been put in place in a timely manner under the guidance of the Minister and will lessen the burden for many businesses.

There is, however, one sector which seems to have fallen through the cracks. For whatever reason, the self-employed, micro-companies, small businesses and social enterprises do not appear to be adequately catered for. They seem to have been left on the fringes to sink or swim. The self-employed represent 15% of the workforce in Ireland, a significant figure. These are people who have chosen to work and to provide for themselves. They work alone or may employ one, two or three people. Perhaps they train a young apprentice.

They own and run their own businesses and are responsible for every aspect of it.

These sole traders and microbusinesses are located in every city, town and village across Tipperary and the country. They do not have the means to advertise, so they depend on word-of-mouth referrals, on being convenient to consumers and on providing a local service. Every week is a gamble. Every opportunity is grasped with both hands.

They are a vital cog in the economic wheel. They drive the local economies. They help ensure that the local wheels keep turning. They purchase their supplies locally. They assist larger business by providing trade-specific services on demand. They live and raise their families in the places they work so they support other local enterprises. They may be microbusinesses, but they pack a macro punch in the local economy.

Sole traders and microbusiness owners are true entrepreneurs of our country. They stepped outside the box. They chose to become self-sufficient through their own hard work. They decided to take a risk - a risk they carry every day. These hard-working men and women work all the hours they can to sustain their business. They struggle to keep their books balanced and they toil to keep their debts paid. Profits, if any, are ploughed back into the business.

Every week they work endless hours to make their risk pay off, hoping and praying that nothing happens to unravel their efforts. Then along comes the pandemic and, in the blink of an eye, everything comes crashing down. This was not a risk anyone could have planned for, least of all the self-employed.

We all know people who have taken the gamble of becoming self-employed. They have ploughed everything they have into their venture. They have borrowed the minimum amount to set themselves up, keep themselves afloat and stay within their means. If things go wrong, they remain liable for these loans. The term "financial wriggle room" does not apply to them, unless it refers to an overdraft arrangement. Despite being the most vulnerable business sector, this cohort have been largely forgotten and ignored by comparison with the bigger businesses.

Microenterprise loans of up to €50,000 are available from Microfinance Ireland. However, to avail of these loans business owners must have received a refusal for finance from commercial providers. They must be able to prove that their business is viable. They will also be required to produce a tax clearance cert. Of course, they must know that they have the capacity to meet the challenge of repaying the loan.

Surely the Government can do more for these people who drive our local economies. While the weekly Covid payment is keeping food on their tables, adding a loan repayment to their financial struggles is not a feasible option in their current fragile state. Businesses will require grant aid and investment to remain viable. Without cash flow these small businesses will crumble adding to the social welfare queues rather than returning to self-sufficiency.

These people have taken personal risks to enhance our economy. They contribute in a small but very consistent way to our country’s progression. They are key people who symbolise enterprise in Ireland today. They are our stepping stones to recovery. They need a once-off payment to address cash flow, start-up costs and restocking. Owners know their business. They operate a simple model. A relatively small investment by the State will pay a rich dividend in terms of renewing small business, protecting jobs and enhancing community service.

I also ask the Minister to ensure that social enterprise is included in any new stimulus programme. These projects must be deemed eligible for new start-up grants. We have several of these social and community enterprises in Tipperary, for example The Cottage in Loughmore, and The Parish Shop &Tea Rooms in Annacarty. These projects are a regenerator of communities, a creator of jobs, a developer of people and social cohesion, and provide other social and economic benefits.

I also raise a separate matter. The Minister will be aware the pharmaceutical industry is the one sector that has increased manufacturing output during this pandemic. Ireland is the largest net exporter of pharmaceuticals in the EU and the third largest globally. The sector directly and indirectly employs 60,000 people. It accounts for €50 billion in exports, of which €21 billion is exported to the United States. All of the world’s top ten drug companies have operations in Ireland.

They are massive employers which support thousands of Irish jobs. We are fortunate to have Abbott Ireland, Boston Scientific and Merck Sharp and Dohme happily settled and manufacturing in Tipperary. President Trump recently stated his intention to bring these manufacturing bases back to America. This threat cannot be dismissed or taken lightly. The repatriation of even one company would cause economic devastation to our regions. Are the Department, IDA Ireland and Enterprise Ireland satisfied that we have the ability and the appropriate terms and conditions in place to counteract any such potential move? Does the Minister accept there is a need for vigilance and constant liaison with the management of these American-owned drug companies which are so crucial to our national economy?

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