Mattie McGrath (Tipperary South, Independent)
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Question 5: To ask the Minister for Jobs; Enterprise and Innovation the measures he is taking to support indigenous small and medium sized businesses that are struggling as a result of the increases in costs such as fuel costs and new taxes and charges; and if he will make a statement on the matter. [27651/12]

John Perry (Sligo-North Leitrim, Fine Gael)
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I acknowledge that many small and medium-sized enterprises, SMEs, are functioning in a very difficult operating environment at present. Some costs, such as fuel and energy prices, are primarily driven by external factors such as global fossil fuel prices. The Government has not introduced any tax increases.

Mattie McGrath (Tipperary South, Independent)
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What about the increase in VAT?

John Perry (Sligo-North Leitrim, Fine Gael)
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There has been no tax increase for business since we took office.

The Government's approach has been to identify those areas of policy it can influence to bring about cost reductions or provide supports to SMEs.

The action plan for jobs includes several measures to improve supports for SMEs. For example, a small business division in Enterprise Ireland is being established for the first time. The county and city enterprise boards are being restructured to create an enhanced national enterprise support model for small businesses at local level. The aim of the new model is to ensure a seamless system of support for indigenous enterprise and entrepreneurs. Access to credit is being addressed through the introduction of the micro-finance loan fund and the temporary partial guarantee scheme, which will make it easier for viable small and medium businesses to access finance. Improved tax incentives have been introduced for small business such as the employer's PRSI incentive scheme and Revenue's job assist which provide for significant cost savings for employers which take on extra staff and an improvement in the seed capital scheme for new start-ups.

We are actively working to facilitate more SMEs to compete for public procurement opportunities. There is an increased emphasis on mentoring of SMEs in the action plan and funding has been provided to support a new management development networks programme. Other supports which help companies to reduce their costs through greater energy efficiency are available from Electric Ireland, Enterprise Ireland, the Environmental Protection Agency and the Sustainable Energy Authority of Ireland. Enterprise Ireland has established a new potential exporters division to deliver a wide range of initiatives focused on helping companies to export to international markets. The Finance Act extended corporation tax exemption for start-up companies until the end of 2014 and provided for improvements in the research and development tax credit.

The Government will report on the delivery of these measures in its quarterly progress reports on the action plan for jobs.

Mattie McGrath (Tipperary South, Independent)
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The Minister of State is a small businessman as I am myself. There is no point in codding ourselves reading out those figures and so-called facts. There have been tax increases. VAT went up which was a disastrous move.

John Perry (Sligo-North Leitrim, Fine Gael)
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VAT has come down.

Mattie McGrath (Tipperary South, Independent)
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The former Minister for Finance, God rest him, put it up by 0.5% but it was an utter failure and he had to reduce it after six months. Putting it up by 2% was a disaster. Tax credits and allowances were also reduced.

The Central Statistics Office, CSO, figures today confirm what everyone knows – businesses are closing down due to many factors such as lack of credit, high rates and so forth. Nothing is being done for small businesses. The Minister earlier referred to the ESB helping competitiveness. The energy regulator has given price increase after increase to the ESB and Bord Gáis. The Government should insist there are no more increases in energy costs and drive them downwards instead. I have been in business 30 years and know of many similar businesses, some even in business for 50 years, that are going to the wall.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy should put his question.

Mattie McGrath (Tipperary South, Independent)
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I met the off-licence representatives today, many of whom are being forced out of business because of the actions of the large supermarkets. There are too many policies and not enough that are pro-small business. We need to encourage existing small businesses to take on extra workers which could ultimately take 300,000 or 400,000 off the live register.

John Perry (Sligo-North Leitrim, Fine Gael)
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Access to credit is an important factor for this sector. The temporary partial loan guarantee should assist this. It was based on the report by John Trethowan's Credit Review Office. However, it is not just about giving money to businesses. Many of them that were viable-----

Mattie McGrath (Tipperary South, Independent)
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They are not able to get credit.

John Perry (Sligo-North Leitrim, Fine Gael)
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The point is that savings of up to €1 billion a month are made in the domestic economy and we must encourage people to buy Irish goods.

The Deputy referred to the retail sector. I see many manufacturing and high-tech companies in my job which are doing very well. There are already 1.8 million working in this economy. The Government's objective is to make it one of the best economies in which to establish, grow and develop a business. Even in good times there was pressure on small companies.

There are rights and responsibilities when it comes to loan applications. There is a simplification process for going through the procedure. Equally, it is not just about getting credit facilities. Likewise, it is important to get a bank that is fit for purpose. The Government has recapitalised the banks. The Taoiseach and the Minister, Deputy Bruton, are meeting with AIB and Bank of Ireland to deal with the €3.5 billion ring-fenced by them both to assist growth in the indigenous industry and enterprise sector.

Despite what the Deputy says, up to €15 billion worth of goods will be exported by indigenous companies this year. There are challenges and no one is denying that fact. Business, however, is never simple. The motto in business is "No problem, no business" which the Deputy should know himself. There will always be problems in business from an efficiency and management point of view. It is not just a case of a quick-fix solution of the banks throwing money at businesses to make them viable. We have become far more cost competitive and everyone is getting more value for money in every sense.

The market is improving and I have seen signs of it in the job I do daily.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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We are moving to ordinary questions. For the information of Members, six minutes are allocated for each of these, with two minutes for the Minister's initial reply and four minutes allocated for supplementary questioning, with a maximum of one minute allocated for asking each question.