Independent TD Tom Fleming claimed there was a "two-speed" economic recovery under way.
He said while Dublin and some of the larger cities and urban areas were experiencing good growth, many rural towns and villages were being left far behind.
“The inner parts of towns are becoming denuded of people because of the growth of large multiples on the outskirts which attract a large volume of business,” he added.
Mr Fleming said while local government might see parking charges as a cash cow, the issue had to be addressed in the immediate future.
Taoiseach Enda Kenny said that while the Government was very much on track to beat the target of 100,000 new jobs by 2016, the perception of a “two-speed” recovery was an important point.
"The cities of Dublin, Galway, Cork, Limerick and, to a lesser extent, Waterford seem to be attracting far more of the jobs than other locations," he added.
“That is why local enterprise offices were set up in every local authority to provide information, access to assistance and an indication of what is available on a one-stop-shop basis.”
Mr Kenny said there were revamped Enterprise Ireland assistance schemes for small and medium enterprises doing a fabulous job in helping people take the next step, recruit and export. IDA Ireland, he added, would launch its regional strategy for developing opportunities outside the main cities.
“I take the deputy’s point,” the Taoiseach added. “We need to improve broadband, communications, power and facilities for pristine water . . . they are all part of the strategy we must develop.”
Mr Fleming said the tax system was hindering small businesses. There was a glaring anomaly which saw the State bend over backwards to accommodate the foreign direct investment sector, which attracted much industry to the country.
Nevertheless, he added, the domestic tax system penalised the self-employed sector.
Mr Fleming said the issue should have been addressed in the last budge, and it was very obvious the 55 per cent marginal rate for self-employed had no rational explanation.
