Robbie Gallagher (Fianna Fail) | Oireachtas source

I call for a debate on the future of small businesses in this country, particularly at a time when, unfortunately, we are beginning to see shops and small bars and restaurants closing their doors, which is a very sad sight to see, not just for the town or village where that business is located but, indeed, for the entire community and local economy.

Many people told me that part of the problem was when the VAT rate increased or reverted back to 13.5%. That has had an adverse effect on many small businesses and small public houses throughout the length and breadth of the country. Some of them told me that 35% of a small pub's turnover could be from food and, in some cases, it could even be up to 50% of turnover.

It is time we had a debate on small businesses and the cost of doing business in Ireland, particularly at a time when we have seen the extension of sick leave recently, the increase in the minimum wage which, again, is welcome, and the auto-enrolment scheme for employees. All these are welcome developments but, unfortunately, they come at a cost. A big business that is employing many people can absorb that cost, but if it is a small business with one, two, three, four or five employees then that additional cost, which some people would perhaps classify as small, can be the difference between surviving and not surviving. It is now time, before we leave it too late, to have a debate on the cost of business and perhaps ask the Government to take a second look at reverting back to a VAT rate of 9%. The Government will tell us that the last time it did that, it cost the Exchequer €1.2 billion. However, I would argue on the flip side that if we lose businesses because of it then we are going to be in a situation whereby we are losing revenue, and that €1.2 billion will be lost in a different way. Therefore, it is not just about the business or about turnover or profit; it is about a community. It is about securing a future for our small pubs and restaurants. It is time we had that debate. I request that the Leader organise that as soon as possible.