Deirdre Clune (Fine Gael)

I welcome the Minister of State and the theme of her contribution is very important and provides an opportunity for us to explore jobs, enterprise and innovation across the EU and how it affects us. Recently we saw figures for exports and these are ensuring the recovery of economy. Exports are the strength of our economy and we have a large market of 500 million people in Europe. That was the theme of the debate on the Lisbon treaty. It concerned jobs created in serving that market. The exports of those employed in the industry have increased, although not as much as we would like, but the European market is important to us. Recent figures from the CSO show that exports in April increased by 6% on the equivalent period last year. That gives us confidence but we must focus on the area. We cannot be complacent.

We must focus on competitiveness and ensure that those exporting to Europe and internationally are allowed to compete with other products. They must not bring excess baggage from doing business in this country. The climate in this country must allow them to reduce their costs. The cost of labour has decreased but we must improve the cost of doing public business, which is a major cost for those operating in this country. This includes the public services offered to businesses. Opening up the sheltered parts of the economy must be addressed.

JLCs and EROs were mentioned. We must introduce efficiencies in rates and costs. This includes the cost of water and waste. These need to be made more efficient. The cost of oil is outside our control but many costs are within our control. If we focus on exports to European and international markets, we must focus on cost.

A previous speaker referred to expenditure on research and development. We have a target of spending 3% of GDP on research and development by 2020. The figures for private business expenditure on research and development are increasing. Small businesses, with fewer than 50 employees, have not increased spending on research and development. They need to be facilitated in that.

I understand the Minister for Enterprise, Jobs and Innovation, Deputy Bruton, intends to bring proposals on this matter in December's budget, although it was hoped to include it in the jobs initiative. Small companies will be facilitated through tax incentives to increase expenditure on research and development. Innovation involves not only science and technology but also focusing on processes, services and efficiencies. That was the theme of the Minister of State's speech and across Europe there is a focus on helping entrepreneurs and small businesses to innovate and avail of services in the area of research and development.

Barriers to innovation include intellectual property and patent law, an area which is more expensive and cumbersome in the EU than in the United States or Japan. Venture capitalists need to be engaged to support businesses, particularly firms operating in the high technology sector. It has been noted on numerous occasions that our bankruptcy laws are archaic and not fit for purpose compared to the UK and other European countries. We will not be able to encourage entrepreneurs and business start-ups while our bankruptcy laws are so outdated. As I am conscious of the time, I will now conclude.