Gerald Nash (Louth, Labour) | Oireachtas source

We are allowing for premia of less than 2% in certain cases. The legislation provides for flexibility in the premia that can apply to schemes. Any premium can only be used towards defraying the costs of the operation of the scheme. A case could be made, when looking at future schemes, to take an approach to a particular sector and design a specific scheme - or if there is an attractive opportunity to do that - in order to address a structural problem in a targeted way for example. The premium could be reduced or amended to assist that sector. Flexibility is included to allow this to happen. The 2% premium is still there but there is flexibility. The 2% applies to the credit guarantee scheme and the counter guarantee scheme and absolutely goes towards defraying the costs of the credit guarantee scheme which applies to the enterprise. The 2% premium is understood but it can be adapted and made flexible to respond to evolving needs.