SFA urges appointment of development plan chief

Small business leaders want responsibility for the next national development plan to be given to one dedicated, independent office…

Small business leaders want responsibility for the next national development plan to be given to one dedicated, independent office.

Angela Kennedy, chairwoman of the Small Firms' Association (SFA), yesterday called on the Government to appoint a "national development plan supremo" to oversee the next plan, due to be unveiled in coming months.

"Unless the new national development plan is prioritised, and someone is made accountable for its overall day-to-day management, Ireland will end up with many unfinished projects, which will have serious consequences for economic development and competitiveness," she told the SFA national conference.

"I believe the appointment of a single office . . . would present a more structured national approach instead of the current situation where local authorities are failing to face up to their responsibilities in providing solutions to the problems of waste, energy, road infrastructure public transport and housing."

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Ms Kennedy accused local authorities of using business as a money tree to pay for their own spending.

She pointed out that local government day-to-day spending had grown from €1.6 billion in 1996 to €4 billion this year. Ms Kennedy said that user charges will account for €2.4 billion of this year's spending, the vast bulk of which is levied on business.

"Unfortunately for all of us, these increases have not resulted in better quality, higher efficiency or productivity," she said.

Chinedu Onyejelem, editor and founder of multi-cultural newspaper, Metro Éireann, told the conference that ethnic entrepreneurs regularly encounter difficulties raising finance.

Mr Onyejelem, who has successfully started and run a number of businesses since he arrived in Ireland in 1997, said that when he inquired about a business loan, he needed three years of audited accounts before it would be considered. He pointed out that this ruled out anyone in a start-up situation.

He said he had come across problems specific to immigrants attempting to start businesses. He pointed out that for cultural or religious reasons, some immigrants cannot use credit. He also pointed to a case where a businessman had successfully applied for a commercial mortgage, only to find that the institution in question would not accept his immigrant identity card (issued by the State to immigrants) because it believed that he did not have permanent residence. He had had full residency for five years.

"Getting finance or credit is one of the major obstacles affecting the development and growth of ethnic entrepreneurs here," he said.

He also told the conference that some immigrant business people had difficulties getting to grips with elements of the Irish tax system, such as VAT and employee PRSI, and suggested that there should be "tailored" information available to them.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas