Seanad debates
Wednesday, 12 December 2007
Small and Medium Enterprises: Statements
5:00 pm
John McGuinness (Carlow-Kilkenny, Fianna Fail)
I respect the work done by the county enterprise boards. I want to see them coming forward with initiatives on marketing their own areas. Within the work they do is the answer to some of the queries that have been put to me in this debate, including Tech-Check in terms of technology and the support from the mentoring system, which is available for every company. I was a member of the county enterprise board for many years and know that any professional intervention required by a company will be supported by these boards. The questions I have been asked have already been answered by the investment made in them.
With regard to upskilling, there is regular investment year on year, now more than ever. Skillnets is a very successful programme delivering upskilling to every business one can imagine which wants to become engaged in the programme. We must, however, build on this progress. Such programmes are not a permanent answer but are simply what will serve our economy for the present. I called earlier for us to be flexible in our approach to this issue.
I do not agree with my constituency colleague, Senator John Paul Phelan, that this is about the blame game. It is about every Member of the Dáil and Seanad recognising the changes that must be made in the interests of the economy. With regard to Enterprise Ireland, people must always benchmark themselves against somebody else to see whether they can make a difference in terms of what they do, and thereby achieve value for money for the investment being made. The same can be said of the IDA.
Profit is the measure of performance in the private sector. Profit in the public sector is public satisfaction — it is about having people receive proper service from the public service and therefore not turn up to their public representative's clinic at weekends. This is how it should be measured.
Reference was made to broadband, which is fundamental to most businesses. Everyone needs it and demands it. It is up to companies like Eircom to unbundle the local loops, get involved in business and work with the Government to capitalise on the investment that has already been made in local area networks and municipal area networks. The ESB has rolled out technology and fibre-optic cable across the country but others are afraid to take this, the "last mile" — the Americans are probably correct when they refer to bringing it the "first mile".
There is also a need for people, not just businesspeople, to demand a service. We need to encourage by proper marketing the uptake of this service right to the individual's door. We need to encourage Eircom in this regard. I hoped when Babcock & Brown acquired a major stake in Eircom that we would see a huge concentration on that market but it has not happened. Public engagement on this issue is required. The investment already made by the Government needs to be protected in terms of rolling out broadband at the required level.
I have a firm belief with regard to local government charges and rates and I agree with Senator Paddy Burke that there is a need for focus in this area. These charges affect the growth of business because people are afraid to move forward due to the hefty charges for planning fees and other contributions. There is a knock-on effect given that, for example, a premises would be re-rated if the owner took the initiative to expand a business, which acts as a disincentive.
I am not afraid to make this point. It may not be the proper to do so in terms of Government but we need to acknowledge the problems that exist if we are to correct them. To achieve this, we should work through the Departments of the Environment, Heritage and Local Government, Enterprise, Trade and Employment and Finance to find some equitable way of funding local government.
My father was in local government from 1950 and I spent 25 years in local government. During all of that time and since, there has been ongoing debate about the funding of local government. There is a need to examine what is happening with regard to such charges. The appropriate recommendations for change should be brought forward, if necessary, and I believe they are necessary. It is only by having this open and frank discussion in the Oireachtas, however, that we can look these problems in the eye and act on behalf of Ireland plc. If we do not do so, we are the ones who will suffer at the end of the day.
Education was mentioned a number of times in this debate. I firmly believe in the role of the educational process in fostering budding entrepreneurs and, to this end, the engagement of county enterprise boards at secondary level is essential. It must be explained to those who are interested in entrepreneurship and have the ability to achieve it, that business is not just for somebody else, it is for everybody. It is up to high achievers with a passion for business to become involved and do it their way. Irish people have that understanding of business, which I have seen in play on various trade missions. I am impressed by what such business people can do. The Government and its agencies need to keep up with the pace of such developments, as well as understanding their demands and working with them. Entrepreneurs should work with colleges and county enterprise boards in order to show how it can be done. Such interaction must take place.
We sometimes refer to job losses, particularly those linked to foreign direct investment. However, when people are employed by a dynamic, foreign company they learn a lot and upskill. A method should be found to acknowledge the credits one can build up as a result. Inevitably, when someone leaves a dynamic and constructive company — and they are all dynamic in how they deal with staff and approach markets — such experience can place a person at the cutting edge of the development of indigenous business. One leaves with a different culture and mind-set, so we should acknowledge by certification the process of upskilling that takes place within such companies. In that way, workers can bring into the work place, and within their own families, the culture of "can-do", along with methods of achievement which can be put into practice in one's own community. That is what it is all about. We should examine ongoing matters in a different way. Business has to do it and so should we.
I am passionate about the role I play within the Department of Enterprise, Trade and Employment. In addition, I am hopeful for continued cross-political interaction on the issues of the day. I hope that in some way, through that interaction, we will be able to bring about some form of constructive change for the SME sector and others that make up our economy. I thank Senators for the opportunity to address the House.
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