Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 35: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken to alleviate some of the red tape and form filling related to the small business sector; her views on whether without this sector the employment situation would be worse; and if she will make a statement on the matter. [41729/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Small Business Forum Report, published in May 2006, outlined the contribution of the small business sector and made a range of recommendations for its support. Government has progressively implemented these recommendations to the benefit of small businesses.

The Small Business Forum Report and more recently in the EU Commission's Communication on a Small Business Act identified the need to provide a more consistent and clear regulatory environment on the basis of better regulation principles continuing to cut red tape and by better adapting administrative rules to the needs of small business.

The Government's commitment is to reduce the administrative burden on Irish business by 25% by 2012 and this demanding target is a key priority.

The High Level Group on Business Regulation is tasked with identifying where legislation has imposed an administrative burden, or "red tape", on business and with recommending ways to reduce that burden, without undermining the policy objectives behind the regulation. The work of the Group is focused on concrete measures in specific policy areas, including taxation, statistics, environment, health and safety, employment and company law. The first report of the Group sets out a number of instances where procedures have been simplified, making it easier for business to deal with Government, for example:

e-filing of annual returns to the Companies Registration Office;

on-line access to tax clearance certificates for Government contracts;

increased exemption thresholds for VAT registration; and

higher thresholds, exempting small businesses from having to conduct a statutory audit.

In its 2008 Report the Group identified over €20m in cost savings to business as a result of simplified administrative procedures such as cutting out paperwork, revising the rules for small businesses and making much better use of on-line services.

In addition, further changes to reduce the burden on business are expected in the procedures surrounding waste collection permits, road haulage permits and employment permits.

In addition to the work of the High Level Group, my Department has put in place a process across all Departments that will measure the administrative cost of red tape on business arising from domestic legislation.

As in all the other countries that have done this, it will take about a year and a half to complete the measurement process. In line with the recommendation of the Business Regulation Forum we are adopting a prioritised approach. Initially, all Government Departments are required to list the Information Obligations that their regulations impose on business. From that listing, Departments will assess, in consultation with business, which requirements are the most burdensome. They will then measure the actual cost to business of the most burdensome requirements. At that point the most appropriate approach to achieving the Government target to reduce the administrative burden of domestic regulation on business by 25% by 2012 will be determined.

With regard to future regulations, the Government has agreed that all Departments should measure the administrative cost on business and specifically examine the impact on small business.

Small businesses make a major contribution to jobs and wealth creation throughout all economies. In Ireland, 97% of all businesses are small (up to 50 employees) and employ some 800,000 people across 250,000 enterprises. At EU level, there are some 23 million Small and Medium Enterprises. These figures confirm how crucial small industry is to our employment and economic development. The Government is committed to supporting indigenous companies through maintaining a positive business environment and through particular interventions from the State development agencies such as Enterprise Ireland, FÁS and the County and City Enterprise Boards. The allocations in my Department's Estimates for 2009 will ensure that we continue to build on these supports for the future.