Recession
74% of small firms believe second rejection of Treaty would have very negative impact
By Patricia Callan, Director, Small Firms Association
Sep 10, 2009 - 2:22:29 PM

“Ireland must be at the centre of Europe, not just for the opportunities it has given us in the past, but the many opportunities it will give us in the future!”
Dr Aidan O’Boyle, Chairman, SFA

• 74% of small firms believe second rejection of Treaty would have very negative impact
• 79% believe “yes vote” important for foreign direct investment 
• 78% believe “yes vote” important for small firms exporting to EU markets 78% of small firms believe that membership of the EU has been important for the success of Irish Business
• SFA Urges “Yes Vote” to Lisbon Treaty

The Chairman of the Small Firms Association, Dr Aidan O’Boyle, has said that the small business community are viewing a YES vote for the Lisbon Reform Treaty as a vote for investment, jobs and the economy. 

A recent SFA survey shows that 78% of small firms believe that membership of the EU has been important for the success of Irish business and 74% believe that a second rejection of the Treaty would have a very negative impact on small businesses and on jobs.  A total of 684 companies, employing 13,768 people responded to the survey, from manufacturing, distribution, retail and services sectors and from a regionally representative sample across the Irish Republic.

Dr O’Boyle stated that: “the SFA is urging voters to say “Yes” in the forthcoming ballot on the Lisbon Treaty, given that in the difficult current trading conditions a positive outcome for the Lisbon Reform Treaty is now more important than ever.  The guarantees that the Government has secured in addition to the Treaty provisions, are a good deal for Ireland and a good deal for small business.  It is essential that the small business community respond in a positive way, as the quality of our response to the Treaty will decide our economic, social, cultural and political future within the Union.”

79% of small firms consider that a second rejection of the Treaty would impact on Ireland’s ability to attract foreign investment.  56% of firms believe that a yes vote is ‘very important’ for foreign direct investment with 23% of companies viewing it as ‘important’. “The multinational sector, as well as being an important creator of jobs in Ireland in its own right, is also critically important to the rest of the economy, as multinationals drive economic growth and contribute to domestic demand, which is essential for all other domestically trading small businesses,” Dr O’Boyle noted.

“As a nation we are facing many challenges; by giving support to Europe we are recognising that some of the most critical challenges facing us can only be addressed at a global level - these are challenges which Ireland cannot face on our own, such as climate change, energy security, international trade, as well as fighting international crime and terrorism.  The unique achievement of the EU has been to devise a system that respects all countries, but ensures the job gets done,” added Dr O’Boyle.

“We joined Europe to do business and to create an Irish society which could provide better jobs, business opportunities and new markets. While our achievements to date have been remarkable and Ireland has demonstrated that small states can make an important difference within the Union, much yet remains to be done. Now is not the time to renege on our commitment to European Union membership,” stated Dr O’Boyle.

Ireland is a small open economy which exports over 80% of every product and service it produces.   Over 42% of small companies export to EU markets and the SFA survey shows that 53% of small firms believe a yes vote is ‘very important’ for Irish companies exporting into the EU market, while 25% view it as ‘important’.  “As the world’s biggest trading bloc, the EU is crucial to Ireland’s economic and trading strategy.  Through our membership of the EU and the creation of the single market, small firms in Ireland can now sell many of their products and services to 486 million customers throughout the EU on an equal footing to any other company in the EU,” commented Dr O’Boyle.

“My own company, Aalto Bio Reagents Ltd, employs ten people and exports in-vitro diagnostic raw materials to every country in the European Union for the diagnosis of cancer, heart disease etc. The ability to ship product by courier to every country in the EU without any customs formalities or bureaucracy is of enormous advantage to a small company like our own. Likewise the opportunity to sell to most countries within the EU in a single currency (Euro) and avoid the problems of exchange rate risk is of major assistance in growing our business. Enlargement of the EU to take in the additional 12 countries over the past few years has provided us with important new market opportunities. Why at a time when job creation should be our major focus would we decide to turn our back on the European Union.  It makes no sense,” commented Dr O’Boyle.

Dr O’Boyle concluded, “The 250,000 small businesses in Ireland, representing 98% of all businesses, and employing half the private sector workforce, can be the deciding factor in this referendum debate.  I would encourage you all to act now in support of the Treaty and vote Yes on the 2nd of October.  Ireland must be at the centre of Europe, not just for the opportunities it has given us in the past, but the many opportunities it will give us in the future!”

For further comment, please contact: 

Dr Aidan O’Boyle, Chairman, Small Firms Association at Tel: 087 2733541

Issued By:  Patricia Callan, Director, Small Firms Association - Tel: 087 6999 345