Labhrás Ó Murchú (Fianna Fail)

The House has had a number of debates on how best to sustain and create employment. Over the years, the decision of major industries to close or relocate has had a devastating impact on the affected areas, frequently leaving hundreds of workers unemployed. In times of recession small industries often have the best chance of surviving because they have a loyalty base in the local community and tend to keep overheads low. As Senators are aware, these types of businesses are under serious threat. While the issue of cashflow from banks will have to be attended to, we must lay down a marker that not every company or group which applies for a loan should be accommodated because the issue of viability also arises.

Another area we must address relates to the Revenue Commissioners. It would be helpful if an assessment were carried out of the taxes small businesses must pay on demand. Payment of tax is often the deciding factor in whether a company continues or closes down. If a company closes, the Exchequer will not receive any revenue from PAYE payments and so forth. If the assessment I propose is done, we should seriously consider introducing a moratorium of perhaps two years to give companies an opportunity to achieve stability in parallel with the stabilisation of the economy. Such a measure would keep employees in small businesses in a job and enable the Exchequer to continue to benefit from the revenue provided by these companies. To turn a blind eye to the problem and allow companies to close on the basis that they must pay their tax would lead us into a cul-de-sac. While I do not propose the introduction of a tax amnesty, I urge the Leader to discuss with the appropriate Minister the possibility of a introducing a moratorium to apply in the circumstances I have described.