Aideen Hayden (Labour) | Oireachtas source

I very much welcome the debate this afternoon on SME week. I noted with concern that the latest SME business trends survey indicated SMEs are expected to reduce their number of staff by 25%. In the same report, an ISME spokesperson calls on the Government to reduce social welfare rates on the basis that it would make it more profitable to work in this country. Let me be honest. I cannot understand how A is equal to B while B is not equal to C. Either we are cutting jobs or jobs are available. I want to bring to the attention of the House recent research that showed social welfare rates in Ireland are not overly generous. This is contrary to the views of ISME and other groups in the sector.

A number of issues relating to SMEs are critical to the future of Ireland. One in particular, which relates to the insolvency legislation, is not often raised. I ask the Leader to raise this with the Minister for Justice and Equality. The legislation is such that SMEs ? the smaller the SME, the worse the circumstances ? are last in the pecking order in cases of insolvency. We have inherited a 19th century-type legal code in that the last people who can afford to be out of pocket are the smaller employers. We need to examine the legislation in other jurisdictions where there is a percentage cut across the board, irrespective of the categories of secured and unsecured creditors. We must look into our hearts, bearing in mind that the Revenue Commissioners are always the first to be paid. If we are serious about improving the position of SMEs, we really must consider our insolvency legislation. I ask the Leader to raise this with the Minister for Justice and Equality.