Batt O'Keeffe (Cork North West, Fianna Fail)

Generally speaking, I implement the recommendations in reports. However, we must be careful in this instance. We have looked at the UK and other countries. The design of a loan guarantee proposal is of vital importance. If the design is not right the guarantee might supplement credit that is already available, which could cost the country much more in the long run.

We asked Forfás to do a detailed analysis to see what benefits there would be for companies, over and above the increase in credit now available through the banks and through recapitalisation. If we do not get it right there will be exposure and further losses to the taxpayer. I know what Members on the other side of the House would say in those circumstances. I have had the Forfás report for three weeks and it is being examined in the Department. I will bring proposals to Government before the summer recess.

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