Mr. John Whelan:

I will deal with Deputy Calleary's comments first. We have reservations about the credit guarantee scheme. The 2% up-front fee to set it up effectively means that the cost of a loan to a regular business has increased by 40% before going anywhere else. As the State takes 75% of the risk we had hoped the State in putting out the scheme would instruct the banks to charge 2% - or even 3% - below their normal rate. At the moment an overdraft facility can cost anywhere between 7% and 9% so there is room for manoeuvre. If the banks reduced it, it might become cost neutral or the same as would apply to a normal loan. That is one of the reservations. If it will cost more, it will not have the desired effect and will not stimulate companies to seek newer markets into which to expand and as a consequence will not create the jobs. There is also a provision requiring that no more than 10% of the total loan portfolio the banks give to any company can be in this particular credit guarantee piece, which will make it very difficult to administer. Our concern is that it will not be taken up and as a consequence will not create the jobs.