Maurice Cummins (Fine Gael)

I thank the Minister of State, Deputy John Perry, for agreeing to return to the House to resume the debate on this very important report to which many Senators contributed last week. A number of other speakers wish to contribute. Overall, the report provides a very good and detailed analysis of the climate for small businesses and there is more of a focus on domestic companies than those involved in the exports sector.

I wish to focus on finance, the county enterprise boards and Government procurement procedures. There should be clear identification of the financial requirements of a small firm. Many face cash-flow problems which are short term and should be dealt with separately from requests for finance required to ensure growth and expansion. Banks are already training staff to understand the provision of finance based on performance rather than on the asset base which was the norm previously. The recommendations on managing cash flow should be initiated immediately as training and the prompt payment rule could easily be provided for.

On investment finance requirements, there should be a mechanism whereby other sources of finance could easily be identified by small firms. The emergence of angel syndicates throughout the country shows the potential to tap into private finance sources. Matching this with Government and bank funds would be an innovative way to bring private investors into small business markets.

Clarification is required on the position of county and city enterprise boards which play a critical role in new start-ups and are the only source of support for non-exports based enterprises which should also be supported. There is great merit in getting companies to participate in courses on how to start one's own business, but such courses should be audited, with agreed delivery standards throughout the country. In addition, the experience of successful businesses should be drawn upon locally to ensure the start your own business courses are practical, relevant and tailored to the specific industry or sector.

There is also an opportunity within the framework of enterprise boards to incentivise business owners to consider their options for expansion. A proposal under consideration in Waterford is to invite business owners with a proven track record but limited export or growth focus to examine their businesses with a view to development opportunities. Those interested would have mentoring and support to develop their growth opportunities and if only a small percentage are encouraged to take the chance to develop their sales that would still be an increase in jobs and investment locally. Those with potential could then proceed to more advanced management development and training.

Regarding clarity for enterprise boards, the Government needs to decide whether that will be under the local government umbrella or Enterprise Ireland. We need clarity soon in that regard.

With regard to Government procurement, there is a very good initiative to get smaller companies to co-operate in tendering for Government or large procurement bodies. However, it should be developed further to create a structure which could be expanded to facilitate small businesses co-operate in tendering for private sector business and into other jurisdictions, overcoming the economies of scale achieved by larger companies.

An initiative in the south east, through the FUSE initiative, has seen the appointment, with the help of Enterprise Ireland, of an experienced procurement manager who is developing a process through which local companies can tender for business to the multinationals in the region. Already there is co-operation with multinationals and the system, when complete, will facilitate joint tenderers through a secure and confidential portal. That could be then expanded on a national basis.

All the points in the report are necessary and should be carried out promptly. It is essential that whoever is charged with monitoring and delivery should report to the Minister and to the House on a regular basis.

We will have a debate on ideas for job creation today and it is our intention to send the ideas we come up with to the Minister and the Minister for Jobs, Enterprise and Innovation, Deputy Bruton. The Minister might put those ideas to his Cabinet colleagues and the advisory group on job creation and come back to us on them at a later stage. It would be beneficial for the House to see that something is happening as a result of our ideas.