Terry Brennan (Fine Gael) | Oireachtas source

Ar dtús, ba mhaith liom fáilte a chur roimh an Aire Stáit ar ais go dtí an Seanad. As the Minister of State stated, small businesses are a central part of our economy and play a vital role in society and our local communities. The Government is clear that it is critical to put SMEs at the centre of our thinking in driving the economic recovery. They have played and will play a significant part in this economic recovery. The ability of SMEs to succeed and grow underpins our future potential for jobs, growth and prosperity.

The Government is focused on ensuring that Irish companies are supported in every way to develop their business, increase exports, create jobs and rebuild the economy. SMEs do not get the recognition they deserve. There are approximately 200,000 SMEs throughout the country. These are local people by and large, working and sustaining their own communities. The Action Plan for Jobs 2012 published earlier this year clearly shows the Government's commitment in this area. Many of the actions which the Government is pursuing through the action plan are aimed at improving Ireland's overall competitiveness by reducing costs and ensuring the enterprise environment is supportive of those companies which can sustain and create jobs. The action plan shows the Government's commitment to implement change and reform in a step-by-step approach to re-energise the economy and meet the challenges of recovery. The plan can and must succeed.

In addition to work under the Action Plan for Jobs 2012, the Government is also delivering on the findings of the advisory group on small business. The advisory group, which is chaired by the Minister of State, published a report entitled The Voice of Small Business in November 2011. We are committed to redoubling our efforts in the coming year and in the Action Plan for Jobs 2013 to ensure that we deliver all possible support to businesses and relieve as much pressure as possible from businesses at this difficult time.

I am also encouraged by a number of recent significant job announcements which show an increased level of confidence from investors in the economy and Government policies. Many Senators today have welcomed the announcement by the Kerry Group, which must be welcomed by us all.

By far the most talked about problem facing SMEs recently is the unavailability of adequate credit facilities. Many Senators have mentioned this. We all know access to finance is a key issue for small businesses and that it is critical to their long-term economic success. There are still problems receiving finance, as stated by many Senators. The action plan for jobs identifies the temporary partial loan guarantee scheme and the microfinance fund as two further actions to address the issue. Both of these schemes are designed to assist companies that have been refused credit by the banks because they are deemed to be a high risk. Perhaps the Minister of State will comment on how successful these schemes have been to date.

Microfinance Ireland was launched to assist SMEs and ensure supports are in place to encourage people to start out on their own and shape their own futures. The microfinance loan fund is designed to stimulate lending to sustainable micro-enterprises and it is targeted at start-ups, newly established companies or growing micro-enterprises employing not more than ten people and it applies across all industrial sectors. It will provide loans of up to ¤25,000 for commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks. Perhaps the Minister of State will comment on how successful the microfinance scheme has been.

Many small businesses, having played an important role, have gone to the wall, unfortunately through no fault of their own. The owners, as with the employees, have fallen on hard times. They have made an impassioned plea to many of us in this House and the Lower House for welfare supports equal to those received by PAYE employees. They have families and mortgages and children going to school and college. Theirs is a valid argument. Why should the self-employed who fall on hard times not be entitled to the same supports as others? That they are not makes no sense to me. Why should one lose out simply because one was self-employed?

Many business owners will argue they are the backbone of the economy, and that a successful recovery goes hand in hand with a buoyant SME sector. I agree totally with them. The low rate of absenteeism in the SME sector in Ireland has been commended across the Continent. At approximately five days per worker per annum, it is close to the very best performance in Europe. The sector must be commended on this.

A significant issue for start-up businesses is their having to pay outstanding rates left unpaid by the previous occupier of their premises. As Senator Sheahan said, there should be a rates remission for the first year and the outstanding rates should be parked. The rates should be paid on a deferred-payment basis, or otherwise, and everything ought to be done to encourage the start-up company. In the past ten days, two major concerns have been drawn to my attention. These are bank lending and outstanding rates in premises. Something must be done in this regard, through the county managers, for example.