Tom Shehan (Fine Gael) | Oireachtas source

I will also confine my contribution to the disorder of the banking sector. I recently wrote to the CEO of Permanent TSB following representations to me by constituents who have banked with TSB all their lives and wished to branch into business. The people concerned were informed two days after visiting the bank to open a business account that they could not do so and were encouraged to take their business to the two pillar banks, AIB and Bank of Ireland.

The following is the reply I received from the CEO, Mr. Jeremy Masding:

While we continue to serve existing business customers I can confirm that since May of this year Permanent TSB no longer offers the service of opening new business accounts. A decision was made by the executive board that personal financial services would be the clear focus of the bank.

This bank, which was bailed out by the taxpayer to the tune of ¤4 billion, is not working for the people, which is very upsetting. The question that needs to be asked is whether this is a wind down of Permanent TSB. One of the constituents told me he initially sought an overdraft facility to open his business and was told very quickly he would not get it. When he tried to open a separate account, this was not possible.

What surprised me most about the response was that a CEO had told the truth, because when one listens to others from the Irish Banking Federation one assumes they mean exactly the opposite to what they say.

If the proposals on the cost of sick leave to the employer were to be introduced in the budget it would have detrimental effects. Page 4 of the Irish Examineryesterday contained a story about an employer who had received a sick note from an employee to cover a nine-day period, but when the employer was at the airport on the eighth day covered by the sick note he met the employee returning from eastern Europe where she had been on holiday to attend a wedding. The practice of giving such sick notes must be investigated the Medical Council or GPs in general. Such availability of sick notes is a big question.

A very important debate on rateable valuations will be held in the House on Thursday and I hope as many Members as possible will contribute. Rateable valuations are based on the square footage of a premises and the best achievable rent. People have an idea that if one has a massive building one will pay massive rates, but the best achievable rent on the property is also taken into account. I know of a man who recently started a business who is paying less than half of the rent paid on the same premises four years ago. However, the rates have remained the same. A supermarket could be 3,500 sq. ft. or 4,500 sq. ft. but any professional such as a solicitor, accountant, dentist or undertaker could have a much higher turnover. If an undertaker has three burials a week this would mean 150 in the year and we know how much a funeral costs. However, the rates on the undertaker's property will be lower than that on the supermarket which employs 20 or 25 people. There is a mismatch and the entire issue should be thrown on the table and a more efficient, accessible and user-friendly approach should be found.

We must get a grip on this as it is blocking many people. Many people have told me they have a great idea for a business and would love to start but will not even contemplate it because of the red tape and the costs involved. These are the people we must try to harness and get involved in business and give them a leg up. I believe that in Northern Ireland a rates rebate is available for the first 12 months for start-up businesses. Let us use a small amount of imagination. Perhaps such a measure would push the boat out, but I suggest providing it to a new business which would not affect another similar business in the community because such people must be enticed.