Finian McGrath (Dublin North Central, Independent)
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Question 4: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason only 38% of small businesses believe social partnership benefits them while 24% believe it is not beneficial and 38% have no opinion; and if she will make a statement on the widespread dissatisfaction with the process. [13964/04]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The fact that 24% of small and medium sized enterprises believe that social partnership is not beneficial, whereas 38% believe that it benefits them, does not suggest "widespread dissatisfaction with the process".

Social partnership has made a significant contribution to the economy in the past 17 years. The social partnership agreements since 1987 have facilitated and encouraged Ireland's economic development and brought benefits to employers, employees and the country. Unemployment now stands at 4.4%, compared to 17% in 1987 when social partnership began. The debt-GDP ratio has fallen from 125% in 1987 to 32.8% at the end of 2003. The rate of inflation was an average of 12% in the ten years to 1987, but it was measured by the CPI in March of this year at 1.3%. The real earnings of workers increased by 40.3% during the period of social partnership. Some 700,000 additional people are working in Ireland today, compared to 1987.

I believe in social partnership, which grew from a consensus among the key economic and social actors in the economy that a single group could not satisfactorily address the challenges facing Ireland in the mid-1980s. Social partnership has a track record in delivering social and economic benefits for all. It has served the country well.

Finian McGrath (Dublin North Central, Independent)
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I thank the Tánaiste for her response. Does she accept that we have a duty to listen to those involved in small businesses? I refer in particular to the 24% of people involved in such businesses who feel left out. Will the Tánaiste acknowledge the major contribution made by such people to society and the economic development of the State? Such people often feel that the employment contributions of their businesses are forgotten by those who are more interested in huge companies and large international corporations.

As legislators, we have a duty to ensure that small businesses get the maximum possible support. It is likely that major problems will emerge as large corporations move to low-cost countries where labour costs are half ours. Does the Tánaiste agree that small businesses, particularly indigenous industries which have more loyalty to the State and are more anchored to Irish society, can play a major part in the strategic and economic development of the country?

Is the Tánaiste aware that some small businesses contribute some of their profits to voluntary and community organisations, as well as paying their regular taxes? Such companies' progressive acts of generosity are often not recognised. We have a duty to listen to the dissatisfaction of such companies with the process. We should face the reality that just 38% of those involved in small businesses are happy with social partnership.

The Tánaiste mentioned that unemployment has dropped to 4.4% nationally. Unemployment is running at 14% in some communities, however, such as parts of the north side of Dublin. If we are serious about investment in this area, we have to face up to the reality that some communities are being left behind despite the country's economic wealth. Other groups who feel left out of the partnership process include groups working to combat unemployment, poverty and the problems of persons with disabilities. Such groups have major concerns. They feel that although 70% of the people seem to be moving on, a constant 30% of the people are not sharing the wealth as much as they deserve. I would like the Tánaiste to address my questions.

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Deputy may be surprised to learn that I agree with most of what he said. When I initially read Question No. 4, I had to recheck the name of the Deputy who submitted it as I was surprised that it had been tabled by Deputy Finian McGrath.

Arthur Morgan (Louth, Sinn Fein)
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Deputy McGrath should join the Progressive Democrats.

Mary Harney (Dublin Mid West, Progressive Democrats)
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I am sure Deputy McGrath is aware that the main reason ISME was dissatisfied with social partnership was that it was opposed to benchmarking. Small business is the backbone of the economy. Most businesses are small and most people who work in the private sector are employed by small businesses. Equally, businesses established by foreign direct investment are extraordinarily important because they account for 70% of our exports and an even higher percentage of our corporate taxes. It is not a question of "one or the other". Many large businesses have helped to generate smaller supply businesses.

Social partnership includes representatives of the tourism and construction industries. The Small Firms Association has 8,000 members and the chambers of commerce have 11,000 members. I do not agree with the claim that the voice of small business is not represented. I would welcome the participation of ISME in the social partnership process. We came close to achieving its inclusion some years ago, but it did not transpire because ISME was not prepared to participate if it could not be involved in pay negotiations. I look forward to the day when it can participate.

Everything we have done — reducing the burden of tax, minimising the amount of regulation, developing our infrastructure, decentralisation and making things happen in the regions — has been done with a view to helping small businesses.

Brendan Howlin (Wexford, Labour)
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They will all happen one day.

Mary Harney (Dublin Mid West, Progressive Democrats)
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Yes. If Deputy Howlin and I meet for a drink 20 years from now — I doubt if any of us will want to be here then because we will have passed our sell-by dates — we will reflect on all the wonderful things that happened in Ireland in recent years. We will say what great things happened and point at what has taken place in Wexford, Clare, Louth and everywhere else. Deputy McGrath might complain if some of his constituents leave Clontarf, but generally it will be good for the country.

The Deputy can be assured that small business is close to my heart. As someone who started a small political business I know what it is like to compete with the multinationals.

Brendan Howlin (Wexford, Labour)
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The Deputy was in a niche market.