Paschal Mooney (Fianna Fail)

I welcome the Minister of State as a friend and constituency colleague from Sligo-North Leitrim and congratulate him on his appointment. Senator Conway is absolutely correct. Despite the perception that we are a regulation free and liberal economy which is conducive to starting businesses, the evidence is mounting to indicate that the opposite is the case. Anybody who listened to yesterday's "Liveline" would have learned about a gentleman in Dublin who has been thwarted by regulation. I was astonished to learn that Dublin City Council, which sees itself as a development agency, is so hidebound that a gentleman who turned a business that had previously failed into a café near Liffey Street could not put out the al fresco chairs and tables that are commonplace across Europe because of regulations. He also made a point which will resonate with those of us who have experience of local government and officials, although it should not be construed as blanket criticism. When he tried to contact the relevant official in Dublin City Council he found the individual was on sick leave. The gentleman - I presume it was a gentleman - was perfectly entitled to sick leave and I hope he has fully recovered but the problem is that there was no plan B and nobody else in the section was able to deal with this simple issue. I presume that one of the Minister of State's priorities will be to investigate the red tape that surrounds business in this country. Like empire building, any bureaucracy which is allowed to continue unregulated and unwatched builds itself to the point where everybody justifies his or her position but nobody takes a decision.

As chairman of the Ireland-Taiwan Parliamentary Friendship Society, the Minister of State highlighted the importance of the Asian market and used the Taiwanese context to bring on board suggestions that were of benefit to this country. I look forward to the establishment of an industry in his home town which will be sourced from Taiwan as a direct result of the wonderful efforts he made as chairman of the society. He also discussed the establishment of a bank which would be similar to an institution that operates in Taiwan. It would not necessarily be a lender of last resort but would guarantee loans to businesses. Members on all sides of the House have noted that the problem businesses face in Ireland is the near impossibility of getting credit. Banks are now scared to issue loans unless the risks are minimal. The need exists for some sort of financial institution that will act as a venture capital bank. Perhaps the Minister of State will elaborate on that issue in his conclusion.

I share the views expressed by Senator Conway and others in regard to a rates burden which is becoming increasingly difficult to sustain. I understand a re-evaluation of the rates base commenced several years ago in a number of counties. However, the process still has a long way to go before it is complete. It appears the rates applied in Dublin are more relevant to the valuations that have been reassessed than is the case for local authorities elsewhere in the country. Senator Harte will probably attest to the fact that Donegal's hotels and well developed tourism sector are being crippled by high rates which are not in keeping with the current level of rateable valuations. I understand the re-evaluation process is not yet complete but I suggest the rates burden will be reduced as a result of it. Coming from a business background, the Minister of State will be aware of this issue.

To end on a positive note, the decision by the Government to reduce VAT to 9% across certain services related to the tourism industry is going to yield good results. During our debate on tourism, I spoke about a small local business in Carrick-on-Shannon in County Leitrim which was started by a group of young guys who I do not want to embarrass by identifying directly. This business employs five or six people and it expects that the VAT reduction, combined with the initiative on PRSI reduction, will allow it to save €60,000 per year. That is the beginning of a direct intervention in the market which will bring significant benefits in terms of maintaining and increasing jobs.

I wish the Minister of State well. He is the right person in the right place and he has the full support of all sides of this House.