Cathal Berry (Kildare South, Independent) | Oireachtas source

I am delighted to be in the Chamber to speak on this very important topic. It is a topic that rarely gets a mention inside the Dáil Chamber, actually, so it is good to be speaking on it this morning. In general terms, we are supportive of the State's industrial policy. As Deputy Tóibín said, FDI and multinationals are very important and we should roll out the red carpet for them. They provide jobs, corporation tax and a million and one spin-offs downstream. However, we should also extend that red carpet to our own industries and SME sector. They are not looking for preferential treatment; they are just looking for equality of treatment. As Deputy Tóibín said, corporation tax is fluctuant, unreliable and very mobile. However, any corporation tax from our sector stays in Ireland. Not only are these companies invested in Ireland but they are also embedded here.

When a corporation or multinational company has a problem, it has good access to the Government. It gets a sympathetic ear and, as a general rule, if it is a solvable problem, the problems are addressed. We would like the same access to be given to SMEs but we do not feel it is being given. They have a number of problems that are not being addressed. The number one problem is cost base. We notice general cost increases in respect of energy, insurance and the cost of credit. Government-specific cost increases that have come in over the last few weeks are causing major problems. They are progressive and very laudable. It is good to improve the minimum wage, introduce automatic pension enrolment and create an extra bank holiday. The extra bits and pieces for employees are really important and we welcome them. However, given that they are Government initiatives, the lion's share of the burden of implementation should fall on the Government rather than the SMEs. The latter are happy to play their part but they are playing more than their part at this stage.

If these changes came individually in isolation, it would be fine, but they have arrived in combination and the cumulative effect is creating a big problem, particularly in the hospitality sector, as my colleagues said. These are important businesses like cafés, family-run restaurants and gastropubs. The issue is not just the financial impact; it is the social impact as well. A lot of employees in our villages get their first job working in cafés and restaurants as waitresses and waiters. Their first pay cheque, with all the autonomy and dignity that comes from that, comes from these companies. From a social point of view, in many villages around the country there is only one café. It is a case of no café, no community. The café is the centre of gravity of an entire village and it is very important that we keep these doors open.

As a solution-focused group, the Regional Group has a number of solutions and recommendations. I will pick three in the time available. The first one is the VAT rate. It is vital that VAT is reduced from 13.5% to 9%. That should be the permanent rate. It is the appropriate rate for food services in the hospitality industry, for sure. It would also help to drive down inflation and keep the doors open, which is very important. With the hospitality season kicking off for the summer, it is very important we get tourists in. If Ireland gets a bad reputation for being a high-cost economy, it will be very hard to change that narrative. We want Irish tourists staying in Ireland for their holidays rather than going to Spain and Portugal.

The second recommendation is about eliminating the welfare traps, as we mentioned. Someone on the working family payment or carer's allowance can only work 18 or 19 hours a week. I was at a company in Clane on Friday that is offering contracts from 18 to 19 hours up to 26 hours a week. There are employees who want to take these contracts but cannot do so because they will lose their welfare benefits, which is appalling.

The last point is probably the most important one for me. Launched by the Taoiseach about three years ago, "Look for Local" was a great campaign that encouraged Irish people to shop local because of the benefits of doing so. The State and the Government should practise what they preach. We have a very centralised procurement process. Administrative convenience should not be the number one priority when it comes to procurement. We should be pushing authority and autonomy down to the local level.

I welcome last week's decision by the Minister for Finance, Deputy Michael McGrath, to reduce to 0% the interest rate on warehoused debt. It was very important. The big lesson for me is it did not require a budget to do that. We should not wait for the budget in October to bring in these changes. It can be done. If these solutions are implemented, the Minister will have the support of the House. Not only will he achieve consensus but I believe he will secure unanimity.

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