Paschal Mooney (Fianna Fail)

There seems to be some confusion. There is evidence being cited that small firms are not getting credit and, on the other hand, there is what is being said by everybody else, including the Small Firms Association, whose bona fides I will not question but which sits on a Government-sponsored task force and which maybe has gone a bit native in terms of parroting the Government line. I do not doubt for one minute that the figures being supplied by the banks to the Government are in any way to be impugned. It is the manner in which these figures are collated.

It was pointed out that it was probably more cost-effective for a small firm to go onto a term loan than to continue with an overdraft, but surely the Minister of State, Deputy Perry, who himself comes from a small business background, would appreciate that all businesses need some form of cashflow to survive, particularly as the seasonal nature of a number of firms requires that they need it at certain times of the year, and that seems to have been closed off to them.

The motion refers to "opening up the rules on tender and procurement again to enable a wider range of firms and businesses to seek public contracts", and we would all agree with that. There was a reaction when the Minister of State, Deputy Brian Hayes, first referred to the possibility of centralising public procurement contracts. Referring, for example, to stationery and other basic elements of small and medium-sized business, but as it applied to local authorities, he said it might be more cost-effective to have a more centralised form of procurement. The point was made at the time that if the Government were to go down that road, laudable and all as it may seem in theory, the reality is that small local businesses would not benefit. For example, where a local authority gives preferment to small local businesses for a wide variety of services it provides, there would be a danger if it were to be centralised to the point referred to by the Minister of State, Deputy Brian Hayes, that local businesses would suffer and jobs would be lost. The Minister of State, Deputy Perry, might address that question of procurement. What is the sentiment in Government in this regard? Is some form of central procurement being proceeded with, notwithstanding that we all agree it should be widened to include as many firms as possible?

It goes without saying that we would all support the view that those who are self-employed should be given some form of social protection. While I accept political charges across the floor as being part and parcel of life in this House, the question relating to the protection of the self-employed did not arise during the Celtic tiger years as we were building an entrepreneurial class in this country because people were doing well. It is quite obvious, however, that within the 450,000 unemployed are those who built up businesses in good time which have gone to the wall through no fault of their own because of the economic downturn. By the way, the downturn does not apply only to this country, which we need to keep repeating. It is a European and worldwide problem following the bank crisis of 2008, which was year zero in terms of the economic downturn. If that had not happened, the history of the past four years might be a different narrative. Having said that, given that it is germane and pertinent, there should be some acknowledgement of the financial distress in which the self-employed find themselves when their businesses have gone to the wall. It is an issue now where it was not an issue previously. Even in these straitened times, I would hope there would be some way the Government might look at this area in order that it would be able to provide some sort of financial comfort for the formerly self-employed and their families.

On the question of local authority rates, the Minister of State, Deputy Perry, and I discussed in recent years the possibility of setting up a bank similar to the Industrial Credit Corporation, ICC, which primarily existed to help small businesses. There were ideas circulating in the Department and from the Minister of State with regard to creating a risk capital financial institution or other financial outlet to underwrite venture capitalists with sound business ideas. This idea would have been borrowed from a number of countries, not least Taiwan, in which the Minister of State did excellent work as chairman of the Ireland-Taiwan Parliamentary Friendship Society during his tenure. He might have views on whether that idea is being progressed or whether there are others to provide some protection through a venture capital financial institution to underwrite those with good ideas. I am not talking about difficult projects in this context.

There is a further issue which I raised with the previous Government, although I accept it is probably a non-runner in these straitened times. There are a number of family-owned hotels, particularly in the west, that are in need of some refurbishment. Despite the excellent initiatives taken by the Government to try to improve tourist numbers, the west is suffering, as the Minister of State is aware. While tourist numbers are rising, the increase is mainly in Dublin and the west is not gaining to the extent it should, despite its excellent infrastructure. Is it possible to consider the introduction grant aid for the refurbishment of family-owned hotels to make them more competitive?