Marc MacSharry (Fianna Fail)

I welcome the opportunity to make a few points on small business. I also welcome my constituency colleague, the Minister of State, Deputy John Perry. We are very proud in the north west to have a local representative as the Minister of State with responsibility for small business who, as Senator Paschal Mooney said, is doing the best job he can in difficult circumstances.

I have read the motion and the amendment. It is welcome that Labour Party Senators are bringing forward a number of issues that require attention and there is little with which one can disagree in what has been said so far. I wish to raise a number of issues. As one who is involved in small business and as a representative of small business for many years in the chambers of commerce movement, I welcome the Chambers Ireland and the Confederation of Irish Industry who are here to listen to the debate. As often happens it is a shame that the important points made here will not be covered by the media as its gallery is empty while the Visitors' Gallery is full. We are used to that in the House. The organisations behind us could do worse than highlight the fact that these important issues are being ignored by what is a selective media.

On the issue of commercial rates, the method of local government funding by consecutive Governments is consistently flawed. The template was simply to wait and see what comes from the local government fund, take it away from what is needed for the year, and divide it out across the business community. That was fundamentally wrong and affects the livelihoods of many, particularly in the more difficult economic times. There is a need for an ability to pay clause, where people can take a holiday from the payment of rates based on economic concerns for a period, to return in future, albeit those figures may add up. In certain circumstances down the line we could look at rates forgiveness. That is necessary given that doors are closing as a direct result of not being able to pay the rates bills which would have arrived in many counties during the past week.

There is no incentive to go into business, engage one's mind or have the entrepreneurial spirit and take that risk as we have seen throughout the economic downturn. People have mentioned the lack of social supports for those who have taken the risk, irrespective of how many they may have employed or the contribution they may have made. That is wrong and the Government must take action in that regard.

On the matter of rates and the Border counties, Senator Jimmy Harte would have mentioned a number of issues in that regard. It is not a level playing field for the Border counties. We have a different set of rules in Sligo, 35 miles away, a different minimum wage, a different VAT rate and a whole series of different regulatory parameters which is wrong. As many of our agencies insist on being the best possible Europeans they tender across the Border which is frustrating for operators on this side of the Border. There is a case to be made in this respect. I wrote a report some years ago and circulated it to councillors in the Border counties calling for a 25% or 30% rebate on commercial rates for people retailing in those areas. Obviously the sterling exchange rate was at a particular level that perhaps made the position worse than now. We have had the VAT increases. Other Senators mentioned that Chambers Ireland had pointed out that was a particular concern with the continuing softening of the retail area.

The issue of upward-only rent reviews is one of particular concern. There was much commentary on the matter by the Government parties in advance of the election but that appears to have gone off the radar given that the Attorney General is examining the issue or that it cannot be done. Today in the other House, Deputy Dara Calleary tabled the Landlord and Tenant (Business Leases Review) Bill 2012 which has been submitted for selection to the Ceann Comhairle. The Bill proposes to deal with this specific issue. As the Minister for Finance, Deputy Michael Noonan, accepted the Central Bank and Financial Services Authority of Ireland (Amendment) Bill 2011 yesterday which provides for publishing the names of financial institutions who treat customers poorly, I hope the Government will embrace the Bill with both arms and make it its own. If the Attorney General has any particular issue with it, amendments can be made on Committee Stage.

In certain parts of the country State authorities and agencies have properties leased to businesses at higher levels. In areas such as Killybegs businesses are renting from port authorities. The Minister could do worse than instruct the agencies to examine the market and albeit that a legal lease is in place at a higher rent, to voluntarily enter into a reduced rate in that regard.

The issue of procurement is a major bone of contention. I do not like us having to be the poster boys of Europe when it comes to procurement. I often use the example of the ushers who serve the Houses of the Oireachtas so well. For many years the ushers' uniforms were manufactured in Sligo by a particular master tailor who was asked if he would continue the work at the same price for a couple of years until a tender process could be arranged, and he lost the tender. So be it, the tender was based purely on price. It is ironic that the uniforms are now manufactured in Belgium and supplied by an Irish agent.

In the German Parliament one will not find a civil servant driving a vehicle other than a Volkswagon, Mercedes or a BMW. I do not think that is in their employment contract or that there are not individuals who have preferences for other models, it is not the done thing. I would like tenders broken down and a specific focus put on how we can ensure, while being good Europeans, we facilitate a process legally that supports industry in Ireland in the first instance. I do not think that deducts from our pro-European stance. We must be more clever in how we do that. In Ireland, the capital city being the key administrative centre where much of the business is done, State agencies can also focus a little more on the support of small businesses. I have said previously that I doubt if any of the legal advice supplied to any Government, State agency or local authority is from a company that is not located between the Royal and Grand canals.

I am aware of an aspect of IBRC which in wishing to procure auctioneering services - I declare an interest as I am an auctioneer - issued a tender process where only those with national distribution could apply. If one was to examine the tender and somebody in the industry was to advise on it, that tender was written for one successful applicant. We need to be much more inclusive and prepare tender documentation and a procurement process that makes it possible for an auctioneer, solicitor or accountant in Buncrana to have equal opportunity for success as KPMG, Grant Thornton Ireland or whoever in Dublin. That has not been done adequately by countless Governments or by this Government. As the Minister of State's heart is in the right place I trust he will take some of the issues on board.