Mr. Garrett Stokes:

I thank members for their questions and input.

On the 45% approval rate, it is not a target. Each application is considered on its merits. The reality is that every one of our applicants is a non-bankable deal; therefore, the starting level is very low. Not providing funding so as not to waste money and not providing funding to help somebody to waste his or her own money while also trying to create jobs is a very difficult balancing act. It is not an exact science by any means. The overall default rate is less than 30%, which means that there is a 70% success rate. This is a very positive message. Any time the approval rate has gone beyond the 45% mark, the default rate has risen dramatically. As I said, it is a difficult balancing act. I hear what members are saying, but we need to strike a balance between achieving best value for money and using the fund appropriately and not helping people to do something which, on examination of a deal, we believe they should not do.

The €25,000 limit is provided for in the statutory instrument. I was not in my current position at the time, but I think it was based on a perceived need in the economy and also on the fact that the European guarantee in place at that stage for micro-finance was for a maximum fund of €25,000 On a point of clarification, the 1% rate mentioned was a discount on our normal rate for people coming to us through the local enterprise offices, LEOs, and the local development companies, LDCs. We do this to encourage people to use the services of the LEOs and LDCs because many of our clients desperately need the additional services and training. It is an incentive to encourage them to go for that rate.

It is true that with a larger fund we would be able to do more. We would also be able to increase our presence in the marketplace. As things stand, we are working with a fund that has a lifespan of approximately ten years and trying to manage our way through the process.

I ask my colleague Ms Parkinson to respond to the question about the landscape and the marketing side.