Written answers

Wednesday, 13 October 2010

Department of Enterprise, Trade and Innovation

Economic Competitiveness

9:00 pm

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
Link to this: Individually | In context

Question 78: To ask the Minister for Enterprise, Trade and Innovation the efforts he is making to reduce State charges for small businesses; and if he will make a statement on the matter. [36517/10]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
Link to this: Individually | In context

Along with my Government colleagues, I will continue to drive the competitiveness agenda across the economy to promote an environment that is conducive to creating jobs and enables all businesses to flourish. The Forfás Annual Competitiveness Report 2010 states that Ireland's regulatory environment is one of the least restrictive in the OECD in relation to product market regulation. The time taken to comply with tax payments is one of the lowest in the OECD across all categories, and Ireland's employment framework is less rigid than the OECD average. However, we are not complacent and my Department is leading the work to reduce red tape.

The High Level Group on Business Regulation works to fast-track simplifications to specific red tape issues identified by business. The High Level Group has processed thirty specific red tape issues brought to its attention by business and continues to drive progress on a further thirty-eight items. To date, the Group has measured over €20m of annual business savings and continues to work with business interests. The Inter-Departmental Group on Regulation coordinates the measurement and reduction of administrative burdens in a systematic manner, based on the internationally recognized Standard Cost Model. It is this second, systematic process that will result in the large-scale reductions in red-tape.

In relation to the fees charged to business by my own Department these have either not increased in the last few years or have been reduced. 33 Local Authorities have either frozen their commercial rates at 2009 prices or reduced them for 2010. I met with the Local Authority Managers in July to discuss what initiatives they can and should take to support business and facilitate training, to foster the business environment in their areas and to ensure that their procurement strategies promote innovation and provide greater SME access to public contracts. I also reinforced the message that competitiveness at local level is as important as it is at national level. Decisions made at local level have a huge role to play in determining the success of enterprise.

More generally, we are seeing lower costs for business, particularly in areas such as energy and rental of prime industrial space and office space. Electricity and gas prices fell for all types of energy consumers in the second half of 2009, and have moved closer to the EU average for most business users. Electricity prices have fallen by 24% in some cases. I will continue to work with my Ministerial colleagues to ensure that State charges for the provision of services to business take account of the impact which such charges can have on the competitiveness of companies and their potential to create jobs in the economy.

Comments

No comments

Log in or join to post a public comment.