Not even a trickle of cash flow to small businesses in spite of all the Bailouts – BREEN.

July 9th, 2010 - Pat Breen

Fine Gael’s Deputy Spokesperson on Foreign Affairs and Clare T.D. Pat Breen speaking on a Fine Gael Private Members Motion in Dail Eireann on Wednesday night last which called on the Government to recognise that its economic plan is failing and urging for jobs and industry growth to be placed at the centre of its economic strategy said that “claims that recession in this Country is over are premature.” Deputy Breen wants a fairer deal for small businesses that have witnessed a dramatic drop in sales and are very fearer for the future.

“Claims that the recession in this country is over are premature given that some 450,000 people are now registered as unemployed, the highest level of unemployment in our history. In County Clare, some 46 people a day have lost their jobs over the past two years.”
Acknowledging that GDP grew by 2.7% in the first quarter of the year, Deputy Breen said that this was mainly due to “the increased export output of our multinationals.” Deputy Breen went on to say that “Four businesses have gone to the wall every day for the first six months of this year in Ireland. Some 28 of those businesses are in Clare. Business people are fearful of the future. This week in Ennis pedestrianisation of the town was abandoned following the experience of local businesses in the O’Connell Street, Abbey Street and Bank Place areas of the town, which witnessed a dramatic drop in sales during the previous six-week trial period. On top of that, there has been a 17% drop experienced by all retail businesses since the beginning of the year.”

Deputy Breen said that “Cash Flow is the lifeblood of small businesses and we were promised when the Government signed a blank cheque to bail out the banks that increased cash flow would result. That has not happened, not even a trickle.”
Speaking after the Debate, Deputy Breen said that “Reducing red tape and over regulation, ending the practice of upward only rent reviews; reducing energy costs, abolishing the €10 Air Travel Tax and getting the banks lending are essential for the survival of small business, however, “this Government’s economic policy is driven by bailouts and they have been very silent on the haemorrhaging of jobs from small and medium enterprises and they have not produced any concrete measures to support these small businesses and stem the tide of rising unemployment.”