Richard O'Donoghue (Limerick County, Independent) | Oireachtas source

I am not sure whether the Tánaiste is aware of the crisis facing SMEs. Employers in small businesses are bombarded regarding the way they can reward employees. I am talking about hair salons, barbers, boutiques, pubs, chains of supermarkets, coffee shops and restaurants around the country. I am delighted to see conditions are improving for employees. Unfortunately, this may not be affordable. While it may be affordable for larger companies, it is a two-tier system when it comes to SMEs. Where are the supports for SMEs to ensure the employment benefits are given to people in SMEs? There has been legislation on things like sick pay and the increase in the minimum wage, which I welcome. Getting staff back to work is increasingly difficult.

Fuel costs are having a major impact on SMEs. The Minister for Finance said yesterday that as the price of fuel goes up, VAT goes up. When the citizens referred to are not in a position to spend money in the shops or local economy, we collect less VAT. These are the SMEs I am talking about. The Minister for Finance said yesterday that we collect more tax on fuel because we are not collecting the VAT in the shops and in the local economy.

This tells us that SMEs are in huge trouble. These are the rural employers. They are the small shops, such as the local butchers and hair salons. I am talking about these people and not about multinationals. I am talking about the local shops in our area.

If the Tánaiste were to go around my county of Limerick, he would find no local shops in Crecora, Fedamore or Ardagh. I refer to the number of SME businesses that have closed in Limerick in the past week alone because they have not got the support to reward their employees, which they want to do. Overhead costs are killing these businesses. I repeat these are not multinational corporations. These are the bread-and-butter people providing employment in the local communities I represent. I am asking the Government, therefore, to intervene. I ask it to consider a two-tier system so we will be able to help the SMEs, these small employers who help small and local communities to survive. The post offices have a big impact in this regard as well and an attempt is being made to close these around the country as well. I ask the Tánaiste to intervene.

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