Jimmy Harte (Labour)

I again welcome the Minister of State, Deputy John Perry, whose business background means he is well placed to understand the needs and difficulties of small business at this time. The problems in large and small towns reflect what is happening worldwide. However, the statistics show that exports are booming. If one confined one's analysis to exports, one would think Ireland was doing very well. However, I know from my experience that the problem is that the domestic economy is flat. We have to get it going and cash moving.

I have been in business for over 25 years. The difficulty when things get tighter is that cash stops flowing. It is like oil in an engine and it is happening everywhere. At Christmas time the strength of sterling gave a small boost to businesses in the Border area. Although it was welcome, it also gave a false sense of optimism. If sterling had been weak, many more retailers in Border areas would have gone under. There is a fear that any currency fluctuations next year will have a detrimental effect on the establishment of businesses.

I agree with Senator Darragh O'Brien in what he said about credit. If a person from a Border area goes to a bank to look for money for his or her business - he or she might have a good idea and some finance in place - the first question the bank will ask is how he or she will cope if the value of sterling increases or decreases. That might be the difference in the business surviving, but that is a bigger issue for the longer term.

One section of the report relates to the management of the crisis. I do not think a single business in the domestic economy can state its future is secure. It is important to bear in mind that every business established in the last 15 years has seen the good times, but not many of them allowed for the difficulties being experienced. They thought the Celtic tiger would continue. In addition to helping people to set up businesses, we need to help them to manage their businesses in order that they will survive the difficulties they are experiencing. The stark reality that businesses are suffering was set out during yesterday morning's briefing by the CSO when it was made clear that if cash and credit did not start to flow, more companies would fail and more people would emigrate.

The lack of confidence in the domestic economy is stark. I encourage the Minister of State to develop facilities that will help people to manage their way through the crisis. Many of the small business people to whom I speak say they do not know where to turn. They are sometimes in denial until things reach the stage where it is too late to do anything. They should know that help is available.

There is no lack of help for companies when they are being set up. If one contacts the relevant agencies, one will receive very good help and support. However, if one has a viable company which is struggling, one might not be able to receive the extra help one needs to get through the difficult times. Senator Darragh O'Brien spoke about a company in his local area which had waited until the last minute, when the bank called in its overdraft. It would be useful if a mentoring service or advice was provided for such companies at an earlier stage.

When I set up my own business, I did not have much experience. I had to manage each month until I reached a position of viability. I suggest help should be provided in the middle and at the end, rather than just at the start. Therefore, I welcome the establishment of an advisory group comprising people with experience in small business. I hope the group will examine these matters more closely. The availability of mentoring services needs to be advertised. Accountants often fail to see beyond the bottom line and are happy to sign off by saying things need to change. However, the company in question might not know where to go. I ask the Minister of State to ensure greater emphasis is placed on this service.