Lucinda Creighton (Dublin South East, Fine Gael)
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Question 58: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the progress that has been made at EU Council level towards fast-tracking the approval of the European Small Business Act (details supplied); the preparation that has been made here for the implementation of the Act; the type of benefits foreseen for small and medium enterprises; and if she will make a statement on the matter. [33990/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The European Commission's proposal for "A Small Business Act (SBA) for Europe" was published on 25 June 2008. Although styled an "Act", the SBA is in fact a Communication from the Commission — COM (2008) 394 final — of 25 June 2008. The SBA consists of three elements: a set of 10 principles which should guide the conception and implementation of policies both at Community and Member States level, a set of policy measures which implement each of the ten principles setting out 42 actions to be undertaken by the Commission and 51 actions which Member States are "invited" to undertake, a set of legislative proposals which are guided by the "Think Small First" principle as follows: a general Block Exemption Regulation on State Aids (adopted on 7 July 2008); a proposal for a Statute for a European Private Company (adopted on 25 June 2008); a proposal for a Directive on reduced VAT rates for locally supplied services (adopted on 7 July 2008); a proposal on VAT invoicing to simplify invoicing rules (foreseen for adoption in November 2008) and an amendment to Directive 2000/35/EC on late payments (foreseen for adoption in February/March 2009).

The French Presidency has made the SBA one of its key priorities for its term as Presidency. The Competitiveness Council of 25/26 September discussed the SBA in the context of the current economic situation. There was a strong consensus among the Ministers on three priority areas within the SBA: improving SME Access to Finance, a Regulatory Environment Supportive of SME's Needs, and enhancing SMEs Access to the Single Market

The French Presidency is currently finalising the preparation of Council Conclusions, together with an Appendix in the form of an "Action Plan" on the SBA, to be adopted in the Competitiveness Council on 1-2 December. These Conclusions and Appendix will then feed into the European Council Conclusions and will have a major role in committing Member States to implementing the SBA. The European Parliament is also preparing an Opinion on the SBA which is expected to be adopted in the plenary session in March 2009.

In terms of implementation, the SBA will be fully embedded in the Lisbon Agenda Growth and Jobs Strategy 2008-2010 to ensure its efficient implementation and to allow for a regular update on its deliverables. The European Commission will insert a first assessment on the implementation of the SBA in its December 2008 Lisbon Report. Member States are expected to report on their implementation measures in their Annual National Reform Programmes starting in 2009. Ireland is supportive of the SBA and welcomes the increased focus on the importance of SMEs and the general « Think Small First » principle. The SBA reflects many of the issues already identified and addressed by the Small Business Forum Report which are already being implemented as part of our policies in assisting SMEs.

Such measures include, for example, in the area of access to finance; the extension of the Business Expansion Scheme and Seed Capital Schemes to 2013, R&D Credits and the seeding of the Venture Capital industry in Ireland; and in the area of Better Regulation, the ongoing work of the Better Regulation Group which published its first report on 6 August 2008.

Ireland is satisfied with the structure of the proposal and with the fact that subsidiarity and proportionality principles are fully reflected in the SBA. Ireland will play an active role in progressing discussions in the relevant Council Working Groups in relation to the five legislative proposals outlined above.

I welcome efforts to identify obstacles to SME development, and policies for their resolution. I believe that a well-constituted and effective Small Business Act can play a positive role in the development of SMEs at both European and Member States levels.