Seanad debates

Wednesday, 12 December 2007

Small and Medium Enterprises: Statements

 

4:00 pm

Photo of Pearse DohertyPearse Doherty (Sinn Fein)

There is no denying that the State has made remarkable economic progress during the past 15 years and the small and medium enterprises have benefited somewhat. There are a number of areas where we can help SMEs to develop. There is an acknowledgement that SMEs are the best way to produce new jobs and certainly the best way forward for the regions. I stand here as one who is an employer but not in enterprise. I come from an area that has been hammered by job losses, many of which have been foreign direct investments, where family members and friends have been left unemployed as a result.

There is no doubt the Government has committed endless studies, plans, documents and explanations on the way forward. It appears there is always a one size fits all approach, what works in Dublin is supposed to work in the regions but it is not like that. Speaking to SMEs there is a consensus about what needs to be done. There is a need for a marketing service to help them market their products, for administrative supports to reduce the paperwork burden, for technical supports for software communication, Internet business, opportunity and customer management systems, and a business school expertise in managing growth and cash flow problems. While there are many other issues I do not have the time to dwell on them.

In regard to the national training fund, to which businesses contribute, there is an appreciation that the upskilling of employees does not meet the needs of the industries that require it. There are also other issues in terms of the all-Ireland development and the difficulties SMEs experience with legislation, particularly in the Border counties which is day-to-day problem. There is also the issue of the demand for an increase in the minimum wage. While we appreciate that the rise in costs, particularly wages, has a large impact on SMEs they must accept that the cost of living in the State requires a certain wage to be paid to people to survive. What is pushing up those wages can be tackled and it can help relieve the burden on SMEs. Housing, healthcare and child care are just three areas where costs have risen beyond all reasonable expectations. To meet these costs people need a fair wage. If the Government progressively intervened in these areas some of the pressures would be taken off the public and the business world.

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