Matt Shanahan (Waterford, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the guests for coming. The Minister of State has outlined the importance of TBESS. Hopefully it will give the supports required but it needs to get out there quickly. The Minister of State mentioned the retail space and a significant number of small SMEs are badly caught at the moment. As they are finding it very difficult, anything the Government can do to expedite moneys under that scheme would be most needed.

The Minister of State referenced the employee permits the Department processed in 2021 was about 28,000. Does he have any idea where the trajectory for that is in 2022, considering we are putting more money and employment into supporting that process?

I welcome the European Space Agency support the Government is providing. What the Minister of State has outlined is important and a great technological development area in which Ireland should be productive in future. I would like to see it pushed out to other TUs beyond the Dublin university space.

Regarding the future growth loan scheme, now the growth sustainability loan scheme, the Minister of State highlighted that 70% is to increase competitiveness and productivity and 30% is directed at improving environmental sustainability. How will the Department track that activity? For many companies, sustainability is a long-term strategic objective whereas they are concerned at the moment with keeping their head above water and meeting the challenges of business today. The majority of loans that will be accessed will be to manage costs and increase productivity and competitiveness. That is one question.

Deputies Stanton and Bruton registered the issue of sectoral supports, which I have been shouting about for some time. We cannot be all things to all people. Certain sectors in the SME space need support to a far greater level than, let us say, data centres. That should be looked at.

My final point is on the approval rating for pillar bank finance and the take-up of the scheme. The Minister of State has highlighted that the scheme looks to be nearly fully subscribed already and that, on the last scheme, only two companies defaulted. That raises two questions. First, do the companies using the scheme need the finance or are they just looking to access cheap finance? Second, a problem during Covid was the number of companies trying to avail of the scheme to which the pillar banks would not lend, even though the risk to the bank was only 20%. How is the Government monitoring that? If only two companies defaulted so far in the future growth and loan scheme, that suggests a large number of companies probably did not need that finance. I would expect that to be higher, as, I think, would anyone in banking who is lending out money. It suggests the scheme only works for companies with healthy balance sheets and good credentials. Unfortunately, it will not really support SMEs with a difficult track record but who need support.