Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

I thank the Regional Group for highlighting the crisis that is facing so many micro, small and medium-sized businesses, which everyone says are the backbone of this country. The crisis is one that threatens their very ability to remain viable or, in simple terms, to just keep their doors open.

As in life, I accept that there is no certainty in business. None. However, businesses have to be able to plan and find a way to make a modest profit. Otherwise, they have to close their doors. Some of the Government's policies are good and we agree with them, which I will come to in a moment, but when Government policy intervenes to the extent that it puts such extra costs on businesses, then it has a responsibility to look at the viability of those businesses and assist them. As I said, the Government has increased the minimum wage and introduced new sick pay legislation and auto-enrolment for pensions. Everybody agrees that these are positive steps and need to be done, but it cannot ignore the impact those extra costs have on small businesses.

The reason I and, I presume, the Regional Group are emphasising small businesses is that they rely on their core business and transactions, whether it is selling a cup of tea or a sandwich, a litre of milk or a kilogram of mincemeat, to make their profit, whereas many of the larger companies have property and forestry investments. In my constituency, they certainly have. That keeps those larger businesses afloat. They can hold on and survive when smaller businesses that rely, as I said, on their core business close their doors. Those businesses will close their doors while larger businesses, those which have interests elsewhere, can survive and hoover up the businesses that were there. The Minister of State and I know that has a greater impact in small towns and villages in rural Ireland and the regions.

I will not name businesses, but in the hospitality sector alone there have been six closures in my constituency since the VAT rate was increased from 9% back to 13.5%. There was another announcement today of a significant closure. The VAT rate for hospitality businesses must be reduced to 9%.

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