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Dáil Éireann díospóireacht -
Wednesday, 13 Mar 1996

Vol. 463 No. 1

Written Answers. - Task Force on Small Business.

Mary O'Rourke

Ceist:

104 Mrs. O'Rourke asked the Minister for Enterprise and Employment the recommendations, if any, of the Task Force on Small Business which have been implemented; the schedule for the implementation of the remaining recommendations; and if he will make a statement on the matter. [5840/96]

The Small Business Task Force made 121 recommendations in its report which was published in March 1994. The following schedule gives details of the recommendations which have been implemented to date. This does not include the substantial progress that has been made in the partial implementation of a number of the recommendations.

The systematic examination and implementation of the remaining recommendations is being pursued by the small business and services division of my Department which has assessed all of the recommendations and is actively pursuing their implementation. While it is not possible to give a precise schedule for the implementation of the remaining recommendations, I should mention that in 1996 my Department will be developing a programme on administrative simplification which will be of particular relevance to a large number of recommendations. My Department will also be giving special attention to proposals for legislation to resolve the problem of late payment of business debts, which is an area highlighted by the Task Force as being of particular importance.
An area to which I attach special importance is the financial environment for small business and I believe the recently announced seed venture capital measure of the Operation Programme for Industry will be particularly important for the sector.
It is clear from the Government's programme,A Government of Renewal, that this Government is committed to the development of small business. In general terms, I am pleased with the progress that has been made towards creating a better business environment in Ireland for small business to grow and flourish. Much more needs to be done and I will be pressing ahead with a view to substantial further progress in 1996. In this regard, policy statements which will have significant implications for this area in relation to both enterprise strategy and service are nearing completion in my Department.
SCHEDULE.
Recommendations of the Task Force Report on Small Business which have been implemented.
Establish a Small Business Division within the Department of Enterprise and Employment.
— Established in June 1994.
Single tax clearance certificate for all public bodies renewable annually.
— Announced by Minister for Finance in August 1994.
Agreement with Telecom Éireann and ESB on the abolition of deposits and guarantees for start-up businesses.
— Agreement between the Task Force on Small Business and Telecom Éireann in December 1993.
Ombundsman for Credit Institutions should be extended to cover incorporated business with a turnover of £100,000 or less.
— Announced in October 1994.
A start-up business with fewer than 20 employees to be required to complete a simple safety statement for the first two years of operation.
— Model Safety Statement issued by Health and Safety Authority in July 1994.
Duty to take reasonable care should be re-enforced on employess. Responsibility should not rest with employers alone.
— Duty to take reasonable care is enforced on employees through the Health, Safety and Welfare at Work Act, 1989 (Section 9). There is provision in the Act which makes it an offence, punishable by a fine, for a person to fail to discharge his duties under Section 9.
Ensure maximum possible amount is secured from the new EIB scheme for SMEs.
— Discussions held to maximise loans under this scheme which is now up and running. The scheme is administered by ICC and AIB.
Extend the Mentor Programmes especially in the context of the County Enterprise Boards.
— This is being implemented under the auspices of the Local Development Operational Programme and the Industrial Development Operational Programme.
Allocate a Mentor to all businesses receiving funding from the County Enterprise Boards.
— This is being implemented under the auspices of the Local Development Operational Programme and the Industrial Development Operational Programme.
Extend the scope of Rollover Relief.
— Under Section 66 of the Finance Act, 1994 all businesses except financial intermediaries are covered by rollover relief. Further changes were made under the 1995 Finance Act to relax some of the conditions which apply to rollover relief on equity investment by entrepreneurs.
Government should encourage banks to lower interest rates schemes and if banks respond positively should consider providing a more favourable tax treatment for loans of this kind.
— Lower interest rate schemes were introduced by most banks during 1994. The abolition of the Bank Levy was announced in 1995.
Establish a Joint Oireachtas Committee on Small Business.
— A Joint Oireachtas Committee on Small Business and Services was established in March 1995.
Introduce single registration form for all tax purposes.
— The Revenue Commissioners have introduced two types of single registration forms, one for companies and the other for sole traders/partnerships.
Reduce the cost of ISO 9000 Quality Standard for small business.
— Fees for small business (up to 25 employees) reduced substantially in 1994.
Practical reform of Monthly VAT Control Statement should be pursued with the Revenue Commissioners with a view to reducing the administrative burden on small business.
— Abolish by Section 132 of Finance Act, 1995.
Establish a Small Business Forum, comprising small business practitioners from all sectors to advise the Minister with responsibility for small business.
—Set up by the Minister for Enterprise and Employment in September 1995.
FÁS to provide evening and week-end courses on developing a business aimed at owners of established businesses.
—FÁS Services to Industry Division provides evening courses for Small Business wishing to expand and also provides evening/week-end Management Development programmes for clusters of companies.
Increase the frequency of tax returns for self-employed on a more frequent basis by direct debit.
—A new direct debit facility for the payment of preliminary tax under the self assessment system was introduced in 1995 Finance Act.
Government should discuss personal guarantees (including family home) with the banks.
—The banks no longer request the family home as security on business loans.
Banks should emulate codes of practice introduced by Bank of England, to govern relations with their small business customer.
—A code of practice has been introduced by the Irish Bankers Federation on behalf of all banks.
Establish representative forums for small business customers in the main banks.
—Forums have been set up the four main banks.
Encourage employers with aid of employer associations to institute prompt payment code.
—ISME and IBEC have launched Prompt Payment Codes of Practice.
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