Written Answers. - Company Liquidations.
Máirín Quill
Question:
45
Miss Quill
asked the
Minister for Enterprise and Employment
his views on a recent survey, carried out by the Irish Small and Medium Enterprises Association, that showed that one in every two company liquidations occurred in the services sector; and the plans, if any, he has to assist companies in this sector in developing their business potential.
[13660/96]
I understand the analysis to which the Deputy is referring was based on statistics published by Dun and Bradstreet Limited in respect of liquidations in 1995. In publishing the statistics, Dun and Bradstreet Limited indicated that the number of business failures in 1995, at 571, was down by 10 per cent on the previous year. The press release went on to say that the decline in the number of business failures reflected the strong performance of the economy.
It is worth remembering that since the services sector represents the largest sector of employment in the economy, 61 per cent in 1995, according to the labour force survey, it is reasonable to assume that the highest number of liquidations would be reflected in this sector. Nonetheless, one of my principal concerns is to ensure that help is available to business to enable them to survive and develop to their full potential. A range of measures are already in place for this purpose and further measures are in the process of being implemented to improve the overall operating environment for small business and services.
In regard to the service sector, I am currently working on a services policy statement. This document will review the impact and growth of the services sector on the structure of production and employment in the economy and examine the factors which affect the growth and development of services. It will also review the balance and types of State supports to ascertain whether these are appropriate and adequate. The policy statement will be aimed at redressing an imbalance in policy which has existed against services for some time, with the objective of creating substantial additional employment.
An area to which I attach special importance is the financial environment for small business. The £208 million access to finance scheme is providing fixed interest rate loans for the creation of jobs and to increase the commercial viability of small business, many of which are services. I extended this scheme to include the services sector for the first time. This scheme, which carries a 6.5 per cent subsidised interest rate, was created to provide long-term, low rate finance to small business and service firms.
This Government has an ongoing commitment to help small business and services in the creation of enterprise and employment. This commitment is reflected in many aspects of Government policy. For example, the 1996 budget reduced the rate of corporation tax, which was of particular benefit to the services sector.
The agencies which come within the responsibility of my Department, including FÁS, Forbairt and Shannon Development, provide a range of support measures to assist enterprises and help them to survive and develop. These measures include training, management development, advisory services and mentoring programmes. The nation-wide system of 35 county and city enterprise boards is designed to assist small and micro enterprises at start-up level through the provision of direct financial assistance, e.g. grants, or indirect financial assistance, including business advice, information, mentoring and management development assistance.
