A call for greater individual freedom for the self-employed has been made by the Irish Small & Medium Enterprises (ISME) association which says Ireland is impeded by excess regulation and bureaucratisation. In a 22-page submission to the Department of Enterprise, Trade and Employment, the ISME says firms spend thousands of pounds a year coping with Government and Brussels-generated bureaucracy. The Core Legislative and Regulatory Burdens on Business and Industry says a typical firm, employing ten people, needs to be acquainted with legislation covering PAYE, PRSI, VAT, industrial relations and social insurance, amounting to almost one million words.

"If we examine the economies of the US, Germany, Japan and, laterally, the UK, we see that individuals in these countries are far less restricted if they wish to work for themselves," the document says. Firms are confronted with almost 1,000 "core" forms a year, covering regulations on employees and returns. "In particular, the said documentation, CSO (Central Statistics Office) requirements and VAT forms require a competent mathematician (and in some cases a linguistic expert) if they are to be `complete and correct'," the report says. Stressing the need for simplified regulation, and the abolishing of "unnecessary documentation", it says jobs are being lost and Government resources wasted in the enforcing of regulations.

European standards should not exceed international ones

Meanwhile, the importance of small companies to the economy should be recognised by Forfas, not ignored, according to ISME. In a letter sent to the chairman of Forfas, Mr Tom Toner, ISME said it should be a full "Social Partner" and accused the state policy advisory body of refusing to engage the SME sector in the partnership negotiations.

"This permeates the work of Forfas and reflects the two-tiered nature of the deliberation process which contributes towards the promotion of industrial policy," wrote Mr Frank Mulcahy, ISME's chief executive.

"This apparent system where the competitive SME sector is treated as being less important than professionally managed big business is unacceptable to ISME," he said.