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Supporting jobs in Irish companies - Martin
Last updated on 14 Feb, 2011
Summary:
This election is not about politics as usual. What this election is about is about offering the people a choice as to who can deliver the growth and jobs essential to getting our economy back on track.
All parties in this election are talking about job creation but only Fianna Fáil is offering concrete plans on a sector by sector basis which tangibly demonstrate exactly how employment can and will be created.
The importance of small and medium sized enterprises to job creation and Ireland’s economy cannot be over-estimated. Small businesses directly support 700,000 Irish jobs. In planning for recovery, Fianna Fáil is placing a special emphasis on the importance of this sector.
Our small and medium enterprises are bulwarks of the local economy in every town and city in the country. They create employment locally, they foster enterprise and they generate economic activity. Our policy is to help in every way possible people in small and medium businesses across the countries who want a pro-enterprise culture to create and maintain jobs.
We see the right tax environment as crucial and that is why we announced the extension of the corporation tax exemption for new small firms and tax changes to improve contractors’ cash flow in the last budget.
Fianna Fáíl has also provided for investments in small firms in their earliest stages of development via an innovative €175 million seed and venture capital programme and through our well-received €500m Innovation Fund. The funding for this is secured in our National Recovery Plan.
On this campaign, I have met owners of companies that have availed of the extension of the PRSI exemption Scheme to employ more people. And this is the type of policy success we need to see more of if we are to fast-track recovery.
Enterprise Ireland and the IDA are crucial to this objective. That is why despite the very difficult fiscal climate we are in, we protected the budgets for both of these agencies for 2011. These agencies already support 82% of all exports, some 500,000 direct and indirect jobs - around 30% of today’s entire workforce. They also have the potential and the know-how to build on these very solid foundations and bring even more jobs in their train.
Under our Plan, in 2011 both Enterprise Ireland and IDA will create 30,000 new jobs. And I believe Ireland’s growth and confidence will return as exports continue to increase. Ireland has a great track record, talent, technology and tax regime. These are inherent strengths that we can build upon with the right policies.
Of course, access to credit is crucial for firms and this has been a huge challenge that many, many viable but vulnerable businesses have had to contend with since the downturn commenced. I want to be clear about this – it is an absolute priority of Fianna Fáil to ensure that the flow of credit is restored for small businesses. Fianna Fáil’s position is simple - if the banks are not working for small business, then it is the responsibility and obligation of the political system to make sure that they do so.
The banks need to be under no illusion that given the support they have received from the taxpayers of this country, that they have a duty to stand with the community, to show good faith and give credit to businesses that are the lifeblood of job creation in our nation.
Last year, we set up the Credit Review Office to ensure that banks would lend money to firms, sole traders and farm enterprises. And there is some sign of an improvement in lending to small firms, according to the recently published third quarterly report from the Credit Review Office.
But this can give no cause for complacency. We are determined that our target of €12 billion for new or increased credit facilities to SMEs is reached and reached conclusively. We will continue to push the banks through the Credit Review Office to free up credit and to help businesses to gain access to funding.
Red tape is a constant challenge and cost for business and we believe that there remains a significant amount which can be achieved in reducing its impact. The introduction of revenue and the companies’ registration office requirements on line is important.
A major issue which I have seen throughout the country is the impact of local authority rates on small businesses, particularly high street shops. The increases being implemented by councils are directly undermining the ability of these businesses to survive and protect employment. I firmly believe that these rates should be reduced to protect employment. The rate reductions will be financed by efficiency savings to be made in local authorities. We are proposing that these savings go to reducing commercial rates for companies which employ fewer than 20 people in particular.
Finally, I would like to say again that the small business plays a vital role in our country and it is central to ensuring that we restore our economy in the years ahead. What I want is for government – both national and local – to provide a supportive environment within which they can do what they do best – innovate and meet public needs. Their skills, their resilience and their hard work will always be the factor that makes the difference, but we can and must do more to reduce unnecessary burdens and provide appropriate supports.