Pat Breen (Clare, Fine Gael) | Oireachtas source

It was a pleasure for me to attend this evening to hear the statements on micro and small and medium enterprises. I thank all of the Senators for their contributions. Some Senators made positive contributions while others expressed genuine concerns about SMEs. Without doubt, SMEs are very important to every public representative whether one lives in an urban or rural constituency. In fact, in many rural areas SMEs are the only form of employment. That is why it is extremely important for us, as a Government, to ensure that we protect small and medium enterprises.

Insurance issues and rates have dominated this discussion. Senators have expressed their genuine concerns here and these issues are a concern for the Government. The cost of doing business for any small business is extremely important if it wishes to remain viable. In the first instance, rates are an issue for local government. On another day we could have a wider discussion on how local government is funded.

I have taken on board the issues raised about the cost of insurance. Of course, we must tackle the issue. The Minister of State at the Department of Finance, Deputy D'Arcy, is tackling it at the moment. The Senators' contributions dealt primarily with the cost of motor insurance. Senator McDowell raised the issue of the cost of motor insurance. That is a huge issue even for a small business that has a company car. We must seriously examine the compensation culture that exists in this country. We must also ensure that we have a good database on claims. Last year, the cost of insurance report was published and the group concerned has done a lot about this matter. Moreover, although some may not agree with me, the cost of insurance has decreased in certain cases and in many instances. However, insurance costs remain very high and pose a problem for many companies. We know that insurance companies would rather pay out than go to court due to the claims that have been made in the past. It is extremely important that we tackle fraud. I assure Senators that all of these issues form part of the process in which we are engaging at the moment. To be frank, there is no easy solution and the cost of insurance is an issue in every country.

Senator Mulherin raised issues related to small rural villages and towns, with which we are all familiar. We all want broadband, including those in the retail sector. If every rural community has broadband then there will be greater access to the Internet. Young people nowadays tend to do a lot of their business online. Without doubt, the problem with broadband affects the retail sector. People shop differently now and use the Internet. An Post and some of the package delivery companies can point clearly to the amount of business being done online through Amazon and many other online stores. In fact, some people say that more parcels than cards are delivered by post at Christmas time. Broadband is an issue and brings its own negativity. At the same time, particularly for retail and downtown stores, people are considering different approaches. The Government could put all of the incentives it likes in place but in the end it is up to consumers to decide which way they want to shop. If they choose to shop with their feet, that is fine but many of them shop with their fingers.

I feel privileged to be here with the Senators this evening. I want to restate the importance of the strategies. The Government will work hard to ensure that strategies, policies and programmes are put in place to meet the demand for SMEs and entrepreneurships.

The Department of Business, Enterprise and Innovation is engaged with the OECD on a review for a roadmap for SMEs in the future to be published in 2019.

I want to talk about the assistance that we give agencies. It is important that we resource Enterprise Ireland, the local enterprise offices and IDA Ireland. In 2016, when I became a Minister of State, the local enterprise offices had a budget of €18 million. Last year, I increased the budget by €4 million, which meant there was a total budget of €22 million for SMEs. At the moment, my Department and I are preparing for budget 2019. I was delighted to hear Senator Ned O'Sullivan talk about budget 2019. It is reassuring to know that we are sticking to our target, particularly on the rainy day fund. The Minister has released the summer economic statement this evening.

The world is rapidly changing and we must adapt. Our small businesses are a good news story. Our unemployment rate, which is 5.8% and falling, speaks for itself. Most experts believe that we will have an unemployment rate of 5% before the end of the year, which brings its own challenge in terms of critical infrastructure. Last week, I visited Prague and the unemployment rate in that country is 2.6%.

Many Senators have spoken about the shortage of skills. I refer in particular to the shortage of labour skills in the agricultural sectors. We are making changes, particularly in terms of work permits. We hope to also increase the number of visas.

I could continue talking for another ten or 15 minutes. However, I shall conclude by thanking all of the Senators for their contributions. Let us hope that we can have this debate again in the future. I urge Senators to think positively and not to think negatively all of the time because there are good things happening for small businesses. There are better things to come from my Department as well.