Tom Shehan (Fine Gael)

Small business costs have rocketed in the past year. After having raised the issue of banks lending to small businesses yesterday, I was inundated with calls from small business interests who are all saying the same thing, namely, that the cost of business for the small and medium-sized enterprise has gone through the roof. It is no surprise that a survey by ISME states turnover was down for 52% of small businesses in 2010 and 2011. While turnover is falling, business costs are rising. For example, the cost of fuel has gone through the roof. There has been a 25% increase in the cost of gas and an 11.2% increase in the cost of electricity in the past year alone. The cost of insurance has risen, an issue raised with me by many people. It seems incredible that insurance costs of buildings are rising when property prices have fallen by up to 50% in some areas. This is having a considerable effect on the cost of doing business. Keeping a delivery van on the road has become almost non-viable considering the increased cost of fuel and van insurance.

We must revisit the issue of upward-only rent reviews and arrive at a solution. As I stated yesterday, we ignore the small business sector at our peril. It comprises the backbone of the Irish economy. So much emphasis is placed on multinationals, which provide approximately 100,000 Irish jobs. While we acknowledge their importance, we must not allow our focus to shift away from the sustaining role the small and medium-sized enterprise sector can play. I ask the Leader to include in the debate on banking and the advancement of credit to small businesses the question of the cost of doing business.