Introduction
It is a great pleasure to be with you again this evening, on the occasion of the Small Firms Association’s National Small Business Awards, 2008. The awards, now in their fourth year, have become synonymous with the highest levels of performance and achievement in our dynamic small business sector.
Economy
Tonight’s business audience needs no reminder that, as a small and very open economy, we in Ireland are directly affected by changes in the international economic environment – whether turbulence in international financial markets, the significant depreciation of the dollar, or indeed confidence generally in the global economic outlook.
However, notwithstanding that we are adjusting to a period of slower growth, the economy is forecast to expand this year at a rate that remains impressive by international standards, and that is set to pick up again in 2009 and 2010.
The reality is that the fundamentals of the Irish economy are strong – a strength which is reflected, not least, in the diversity of achievement being celebrated here this evening.
We have a dynamic and well-educated labour force; low rates of taxation on both capital and labour; and sound public finances carrying one of the lowest levels of debt in the EU.
It is this underlying strength that allows us to respond with confidence to less favourable economic conditions. And it is the same underlying strength that is supporting the unprecedented level of investment now underway in enhancing our productive capacity - including a €100 billion public capital programme under the new NDP.
Following Budget 2008, we are now committing nearly 6% of GNP over the next five years to upgrading national infrastructure.
Climate Change
One important factor driving our investment programme, and many other policies, is the need to reduce our greenhouse gas emissions to help tackle climate change. This poses major challenges for the business sector, but it also provides opportunities. The Government is investing about €200 million in energy-related Research and Development over the coming years and we hope that the Irish enterprise sector will grasp the opportunity to participate in the fast-growing sustainable energy industry.
This is not just about new technologies and major infrastructure projects: the rise in energy prices worldwide means that every business will need to identify ways to become more energy efficient. The 2008 Finance Bill includes a tax incentive for companies purchasing specified energy saving equipment, which will help to support the necessary investment.
Small Business Innovation
The fast pace of growing international competition is creating pressure for greater efficiency, quality and productivity. Our economy has changed radically in recent times, and we now face the challenges of a developed, mature economy competing on a global scale.
With well over 90 per cent of companies operating in Ireland today employing less than 50 people, the crucial role of a vibrant, innovative small business sector is beyond question.
In today's globalised economy, we cannot compete as a lowest-cost place to do business. Of course, minimising our cost levels remains important, but our real competitive advantage is our knowledge base and capacity for innovation. In simple terms, we have to be smarter, quicker and more adaptable than our competitors.
The Report of the Small Business Forum, published in May 2006, set out a comprehensive agenda designed to ensure that the small business sector achieves its full potential and continues to play a key role in our economic development over the next decade.
The Forum’s recommendations were focussed on three fundamental objectives: creating a better environment for small enterprises; stimulating growth of small enterprises; and encouraging more and better start-ups.
Progress with Small Business Agenda
Considerable progress has already been made in taking this agenda forward.
Budgets 2007 and 2008 provided for a series of measures designed to help the small business sector. They included the extension and radical improvement of the Business Expansion and Seed Capital Schemes up to 2013; and important increases in the VAT Cash Accounting and VAT Registration Turnover Thresholds.
The threshold for the exemption from the requirement that companies have their accounts audited has been increased from €1.5m to €7.3m.
The Innovation Voucher Scheme, launched in March 2007, provides an incentive to small enterprises to explore new ideas within their businesses and help drive levels of innovation within the sector.
The “Tech-Check” Programme, launched in April 2007, now provides small businesses with the opportunity to access a highly subsidised independent technology check-up, identifying ways to boost productivity and profitability through the better use of technology.
The Management Development Council, established in May 2007, will benchmark Ireland’s current management development provision. It will also develop a coordinated approach to raising awareness in the SME sector of the value of and need for leadership and management skills.
In addition to all of this, the first “Small Business in Ireland” Report was published by the Central Statistics Office in May 2007 – bringing together, for the first time, a comprehensive set of statistics that clearly demonstrates the importance of the small business sector to our economy.
I believe that the Government’s commitment to small business in Ireland is clearly demonstrated by the real and substantive changes that have already been implemented in response to the Forum’s Report.
It is an agenda on which we must continue to work together, strengthening our adaptability to the challenges of a new competitive environment. Tonight’s awards are further evidence that we can meet these challenges with confidence.
And I have no doubt that the Small Firms Association will play its part to the full in this process. I would like, by the way, to pay tribute to your Chairman, Pat Crotty, your Director, Patricia Callan and the SFA for their proactive approach to representing the views and concerns of small business to Government across a wide range of issues.
EU Reform Treaty
Before I leave you tonight, I would just like to briefly touch on the subject of the EU Reform Treaty. EU membership has been massively beneficial and greatly influential in many facets of our economy and society - providing significant funding; improving working conditions; and opening up trading barriers and increasing market access through the Single Market. EU membership is, and will continue to be, crucial to Ireland’s well-being.
The Reform Treaty will not only improve the way the Union functions but will support and sustain economic growth; create and protect jobs; promote international trade and environmental sustainability; and speed up decision making. I know that I do not need to emphasise to a group like this how important our membership of the Union is to economic prosperity. However, I encourage you all to become actively involved in the debate on the Reform Treaty that will take place in the coming months.
Conclusion
In closing, I would like to thank everybody concerned for all their hard work in making the SFA Small Business Awards such a success. And I would like to say a special work of thanks to the sponsors - O2, Bank of Ireland Business Banking, Enterprise Ireland, Bord Bia, FÁS and the Institute of Chartered Accountants in Ireland for their continuing commitment to this programme.
I trust you will all enjoy the evening ahead, and wish you all every success in your future business endeavours.
Thank you very much.
ENDS