1. Autumn 2010 Edition
n
F i n e G a e l’s N ew s le t te r fo r t h e B u s i n e ss C o m m u n i t y i n I re l a n d
Working
with
3 years on and only 4%
of promised red tape
reduction delivered
Three years ago, the Government promised to reduce the
unnecessary cost of business compliance by €500 million. In
today’s fiercely competitive business environment that is €500
million that business can’t afford to part with. To date, past the
halfway stage, only €20 million in savings have been achieved.
Cutting out unnecessary red tape must be a key part of a new
Government’s agenda to make the Irish business environment
competitive again.
Why does the Government make such an important promise and
only deliver on 4% of it? They cannot blame the recession for this
failure. It is part of what was recently branded “a Chronic Implementation
Deficit Disorder,” from which the Government suffers.
Only 6% of
jobs delivered
The Credit under John
Review Government O’Mahony TD
Office – PRSI rebate
What it scheme
can do Last December the Government
for you announced a refund of
employer’s PRSI to companies
that hired people who had been
6 months on the dole. The target
If you’re a small business, sole trader or farm owner who was 10,000 new jobs. Only 629
has had difficulty getting credit or loan facilities of up jobs have so far been supported
to €250,000 or you have had an unfavourable change to under the scheme.
your existing credit terms, get in touch with the Credit
Review Office for an independent review. Fine Gael believes that all
businesses need a PRSI relief
Only 20 businesses have taken up this option in the first and not just those expanding.
six months! The banks are required to comply with the Our plan proposed to cut all
D’Alton Street,
recommendation or to give their reasons for not doing wage bills by on average 3%. Claremorris, Co Mayo.
so to the Credit Review Office. The Office has overturned This plan would have helped
the Banks’ decision in four cases.
Tel: 094 93 73560
make 1.7 million jobs more
secure and make it cheaper to
Fax: 094 93 737339
Call them on 1850 211 789 or visit online at www. Dáil: 01 618 3706
creditreview.ie where you will find good advice on how hire new employees.
to approach your bank. Text: 086 326 8041
Email: john.omahony@oireachtas.ie
web: www.johnomahony.ie
Business Newslet J O'Mahony.indd 1 01/11/2010 16:19:24

2. Fine Gael will
rationalise
State business
inspections
As part of its upcoming policy on
overhauling the public sector, Fine
Gael will propose a One Stop Shop for
business inspections by State bodies.
Irish businesses face inspections from
a growing range of Government bodies,
such as the National Employment
Rights Authority, the Health and Safety
Authority, the Food Safety Authority, the
Environmental Protection Agency, and
County Enterprise Board funding still the local authorities. These inspections
down 10% from last year are often uncoordinated and repetitious.
Huge efficiency gains for the State, and
A Fine Gael survey of all the County Enterprise Boards conducted at the end of far lower compliance costs for business
the summer revealed that 37% had no funding or severely limited support for can be secured if they are consolidated
new starts ups. Under pressure the Government has now committed an extra under one roof.
€3.3 million. However, this is still down 10% on the total funding allocated last
year. The number of applications to start a new business is up 20%, but the
Government has cut funds by 10%. The future of the economy depends on people
having the ingenuity and the courage to set up a new business. The banks won’t
touch them and now we see the Government abandoning them too. This makes
a nonsense of the Government’s claim that enterprise and jobs are at the heart
of their strategy. It now seems that the County Enterprise Boards are set to be
integrated into Enterprise Ireland.
SME loan
guarantee:
Banks must be
made compete
for it
The Government still hasn’t woken
up to the realisation that NAMA
Government is not providing a “wall of cash”
responsible for most in credit for small business. It did
not take up the Fine Gael plan for
of competitiveness a National Recovery Bank, and
now it is set to reject Fine Gael
loss proposals on a loan guarantee
It is simply inexplicable why the Government for viable small businesses.
hasn’t produced a Competitiveness Action Plan International experience has
to tackle the competitiveness agenda. The shown that a properly designed
loan guarantee scheme can
2010 Report on Irish competitiveness shows
confine default to 1.5%. The
a further decline in Ireland’s position. Of the
36 indicators of competitiveness which are
target group would be viable
businesses who can’t put up
The new Fine Gael
in the red zone, government is responsible
for 20 of them! Yet there is no attempt to
the collateral or the guarantees
sought. The banks would retain
Business Team
go to work on these problems with a sense of a significant share of the risk
purpose. The Irish Government is a persistent Richard Bruton - Enterprise, Jobs &
(at least 25%). Banks would be Economic Planning
offender on costs for energy, waste, water and required to bid every quarter
communication. It has refused to implement for a slice of the cover, and be Deirdre Clune - Innovation and Research
an effective competition policy. Less than half rewarded with bigger slices John Perry - Small Business
of the recommendations of the Competition where they can show a record of
Authority on the legal profession, the health success. This will not be another Kieran O’Donnell - Deputy Enterprise
sector, and transport, have been implemented. way for the banks to unload bad Spokesperson
0612
High rent, too should be challenged. loans onto the taxpayer.
Business Newslet J O'Mahony.indd 2 01/11/2010 16:19:31