Imelda Henry (Fine Gael)

I welcome my constituency colleague, the Minister of State, Deputy Perry, to the Seanad.

We all agree that job creation is essential for our economic recovery and we are very fortunate that the Taoiseach, Deputy Enda Kenny, has appointed a Minister of State with specific responsibility for small businesses. This shows the Government is aware of just how important small businesses are to our economic recovery.

The objectives of the jobs initiative are to get people back to work, kick start economic activity and provide opportunities for those who have lost their jobs to reskill and rebuild confidence, which will encourage consumers to start to spend again. I welcome these measures, as a person with a business background who has run a small business and because time and time again I hear stories from people trying to keep their heads above water in these very difficult and economically challenging times.

I welcome the fact that the Government is tackling the issue of access to credit. The lack of credit and the attitude of the banks are causing serious problems for small businesses and have forced many businesses to close. I am pleased the Department is working closely with the Department of Finance to flesh out the lending targets of the two pillar banks. I sincerely hope this will address failures in the provision of credit for viable businesses.

The Government has shown it is committed to keeping low the costs which impact on businesses, and while I accept this will take a joined-up effort across all Departments I am confident the Minister of State, Deputy Perry, will work with his ministerial colleagues to explore options to reduce costs and, above all, reduce red tape for businesses.

I welcome the fact that from 1 July the Government will require the HSE, local authorities and all other public sector bodies, excluding commercial semi-State bodies, to pay suppliers within 15 days of receipt of invoice. This will greatly assist businesses which are finding it so difficult to get paid and should improve their cash flow. We have limited resources and we must focus them on the measures that offer the greatest potential for expansion and employment creation in our domestic economy. The jobs initiative does so. It focuses on labour intensive areas which will generate jobs quickly.

The jobs initiative will help to support renewed economic growth. It will do so by boosting morale and helping to inject confidence back into the economy by encouraging people, particularly those with savings, to start spending again. I am confident that all the measures in this package , particularly the reduction of PRSI and of VAT on services, will, when taken together, play their part in addressing the problems facing our economy.

As a publican, I was honoured to get the VFI nomination for the Seanad and I am aware of the many difficulties and potential in our trade. I support the proposals of the Minister, Deputy Bruton to deal with JLCs. Several thousand jobs were lost in 2010 in the pub sector alone and many of the remaining 50,000 jobs in our sector are under threat. There will be no reduction in pay, unless by agreement, for those currently employed as they already have contracts of employment. Any changes made now would affect people entering the sector rather that those already in it. A sizeable number of pubs and restaurants have stopped serving food on Sundays, which means there are fewer options for consumers and tourists. Part-time work, particularly for students and those whom it suits to work on Sunday, has disappeared. As somebody living in a Border county, I know that hospitality trade staff are paid a higher rate of between 25% and 50%. It is easier to preserve jobs than create them so we need help to preserve jobs in the pub, catering and hospitality sectors.