John Carty (Fianna Fail)

I move amendment No. 1:

To delete all words after "Seanad Éireann" and substitute the following:

"welcomes, in particular, the Government's five year integrated trade, tourism and investment plan, Trading and Investing in a Smart Economy, designed to help all Irish businesses compete on global markets and create 300,000 jobs across the Irish economy in both exporting and locally trading firms;

notes the intensive work under way within the Government in relation to further SME credit initiatives while at the same time ensuring that banks fulfil their commitments given to Government to lend to this sector.

Recognising the important contribution which small and medium enterprises make to economic growth and employment creation, commends the Government for the priority it has given to introducing new and specific initiatives aimed at improving the business environment and supporting directly the further development of the SME sector, in particular;

the measures taken to ensure the continued operation of a sustainable banking sector as a provider of credit to viable enterprises in the State, including

— the introduction in 2009 by the Financial Regulator of a statutory code of conduct for business lending to SMEs,

— securing a commitment by both AIB and Bank of Ireland to make available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011, including funds for working capital,

— the establishment of the Credit Review Office to measure compliance with the banks' lending commitments, to examine the lending practices of the recapitalised banks and to review refusals of bank credit,

providing continued capital funding of €15 million in 2010 to the county and city enterprise boards to assist micro enterprises and promote entrepreneurship and recently providing an additional capital funding of €3.3 million to the CEBs, creating more than 450 jobs;

providing financial support to almost 2,000 companies through the employment subsidy scheme and the enterprise stabilisation fund;

improving the cash flow of SMEs by requiring Departments to pay their business suppliers within 15 days of receipt of a valid invoice;

the provision of €278 million to Enterprise Ireland in 2010, representing a 26% increase on the outturn for 2009, to stimulate the development of new businesses and facilitate the expansion of existing companies through a broad range of initiatives including direct financial and non-financial supports;

the commitment through Enterprise Ireland to invest €175 million through the Seed and Venture Capital Programme 2007-12 for companies at the early and growth stages of development;

establishing the €500 million Innovation Fund Ireland to support entrepreneurs so that they can create jobs;

establishing the employer job (PRSI) incentive scheme to reduce business costs associated with hiring new employees;

the provision of €425 million for the implementation of the LEADER Rural Development Programme 2007-2013 to promote sustainable employment creation in the rural economy; and

preserving a low tax regime for business.".

I welcome the Minister of State, Deputy Kelleher. He has come before the House on a number of occasions and I am sure he does not want to become too used to sitting in the seat he now occupies. The Minister of State always makes a measured contribution when he appears in this Chamber.

It is a matter of regret that a number of small businesses have closed in recent years. It must be placed on record that there are a number of reasons for this, particularly in the retail sector. With multinationals establishing operations in towns and in view of the fact that consumers are careful with regard to what they spend, major pressure has been exerted on retail businesses. Some such businesses have been owned by the same families for two or three generations. It is unfair to state that the Government has not done anything to assist businesses. A number of businesses in my area that are involved in manufacturing are doing quite well. Only those businesses which were involved with the construction sector - where there has been a decrease in activity - are experiencing difficulties. The latter are, thankfully, the only business concerns that have been affected, certainly in the part of the county in which I live.

Access to credit is vital for viable businesses, particularly small and medium-sized enterprises, to ensure we emerge from the current recession. During the past 20 months the Government has created a fit banking system and has taken action to sustain the banks and ensure the flow of money to the economy. The banks must be sound to ensure the financial needs of businesses and householders can be met. The Government has put in place the bank guarantee and recapitalisation schemes, it has nationalised Anglo Irish Bank and passed the National Asset Management Agency Act. This was done to ensure we have a sound banking system.

A code of practice on lending to SMEs was put in place as part of the recapitalisation scheme. Explicit provisions, the purpose of which is to provide support for SMEs, were introduced last March. AIB and Bank of Ireland have each been ordered to make not less than €3 billion available for new or increased credit facilities to SMEs in 2010 and 2011. This must include funds set aside for working capital for businesses and should foster growth. The Government has promised to keep the position under review, particularly as needs change.

Since he became Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe has informed the banks what he and the Government expect in return for their being kept afloat with taxpayers' money. He has left them in no doubt with regard to what they are required to do in current circumstances and also in the future. Even though some in the banks do not recognise it and have still not come to terms with the grief they have caused to people involved in business, it must be recognised that the good old days are over.

The county enterprise boards will be given €3.3 million in funding before the end of the year in order that they might assist in creating 450 jobs in small firms. This money is additional to the €15 million already provided this year. County enterprise boards adopt a hands-on approach and their members are aware of what is happening in their areas. It is interesting that in a recent edition of "Prime Time", to which the Minister of State made an admirable contribution, the majority of the entrepreneurs interviewed praised the enterprise boards and IDA Ireland for their guidance and assistance. There was a certain amount of criticism but most of this was aimed at the level of bureaucracy attaching to the various schemes. Let us be honest - where public money is involved, there must be corresponding regulation. However, common sense should also play a part. Bureaucracy must not be allowed to lead to the suppression of schemes.

High-quality, sustainable jobs are being secured by attracting foreign investment and supporting Irish companies. In the first six months of the year, IDA Ireland and Enterprise Ireland made over 50 announcements in respect of over 4,000 jobs to be created throughout the country. I compliment the Government, the Minister for Enterprise, Trade and Innovation, IDA Ireland and all other agencies on ensuring that Hollister could expand its operations in Ballina, County Mayo. There was stiff competition for the work involved from other countries across Europe and in Asia. It is only right that the management at Hollister should be complimented for developing their operations in Ballina during the past 35 years. The company has a proven record and its staff are excellent at what they do. The creation of 250 new jobs at the Hollister plant in Ballina underlines what I have said. The advent of this number of jobs in Ballina is similar to the creation of 2,000 new jobs in Dublin.

What happened in recent days was good news for Ballina, for Mayo in general and also for Ireland because it proves that we are as good as the best. It is great that this company decided not to move its operations elsewhere. The CEO of Hollister stated that the 12.5% rate of corporation tax was an extremely helpful consideration. What he said underlines the fact that we cannot allow anyone - suggestions have been made in this regard by some in Europe - to tamper with our corporation tax rate. The Minister, Deputy Batt O'Keeffe, when speaking at the function to announce the 250 new jobs at Hollister, provided an assurance that the Government is not for turning in respect of our 12.5% rate in this regard.

The Government has provided a strong commitment to attracting jobs, to assisting entrepreneurs in creating employment and to providing various companies that are already based here with leadership and financial support. It must continue with its work in this regard to ensure small companies continue to survive and provide employment. By doing this, it will ensure that Ireland remains at the forefront in the coming years.