Micheál Carrigy (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Troy, to the House. I also welcome the Bill, which represents a lifeline for small and medium-sized businesses and gives them the opportunity to restructure their debts and allow them to continue trading.

Throughout Covid, the Government has introduced numerous schemes to mitigate the impact of the pandemic, which have been very successful, but a lot of business owners were under severe pressure with regard to the liquidity and sustainability of their business. This was particularly felt among the small and micro companies who employ more than 750,000 people in sectors such as retail, service and the hospitality industry, industries which have been severely affected by Covid-19 over the past 15 months.

It is hoped to reduce the cost of the rescue process to between €20,000 and €50,000. However, this can still be prohibitive to some small companies. I hope that some mechanism can be put in place to deal with this issue.

A number of factors continue to cause concern for small business. One of those is public liability, where a high percentage of businesses still have high premiums despite being closed, and a large number are now receiving significant premium increases despite a reduction in claims. I welcome the work done by the Government in recent times, but the fact is we have an insufficient number of underwriters in this country for public liability insurance. We must ensure the viability of small and micro businesses post-Government supports, so it is necessary that we tackle this issue immediately.

The second factor is high rents. The Small Firms Association has pointed out that the greatest risk of insolvency comes from overseas contracts, in particular leases with rents exceeding current market rents. Post-Covid, some categories of rent may fall, as less fortunate businesses close, which would mean new entrants would have a distinct advantage, as well as large companies that can avail of examinership. Most, but not all, landlords will reduce rent to market levels. We need a mechanism to allow businesses to exit unaffordable rent that may be above market levels.

I also want to mention the numerous schemes that have been expanded in recent years, which I welcome, from paternity leave to sick leave, the increase in the minimum wage and increased regulations. Business owners would love to implement all these schemes, but for a significant number it may make their business non-viable. We must discuss these extra costs and also what is being proposed in terms of future taxes on employers.

It is also important that we protect the small and micro firms who may be creditors of a business that enters this process. It is key that the rescue plan satisfies the test on ensuring the best interests of the creditor, which must provide the creditor with a better financial outcome than if the company in question were liquidated while also ensuring its viability into the future.

Ultimately, this legislation is about saving companies and saving jobs while also looking after workers' rights. It has never been more important for local people to support local industries and the local hospitality sector. I am working on a project with Longford Chamber of Commerce and Industry, traders' groups around the county and the county tourism committee to develop a Longford voucher card. We are trying to get all businesses in Longford involved in it. We hope that all companies will purchase gift cards and that when they are purchasing gifts for Christmas, they will purchase a Longford card that must be spent in Longford. That will keep the money within the county.

I welcome the announcement by the Minister of State, Deputy Troy, this morning on the 60 jobs to be provided by the Ardonagh Group in Mullingar. I look forward to more such announcements in future over his term in the Department. I hope a few jobs will come across the county boundary into my county of Longford, where he has done a lot of work since he was elected to the Dáil in 2011.

I extend my best wishes to the Minister of State and to Aideen. I was unaware that his wedding was coming up this week until it was mentioned. I wish him well and good health to both of them in the future.