Deirdre Clune (Cork South Central, Fine Gael)

I am pleased to speak to this motion. It is well thought out and focuses on small businesses which are the backbone of the economy. There must be an effort to provide guaranteed funding to them, an idea that has been lacking in all the announcements made by the Government. I noticed the Minister for Enterprise, Trade and Innovation said at the annual Small Firms Association dinner on 16 September that departmental officials were working on such a loan guarantee scheme and that detailed discussions were under way. However, the Government's amendment to the motion does not refer to it. I look forward to hearing the Minister's contribution on that. This is a significant scheme, with its operation clearly detailed, and I commend Deputy Perry for that.

Foreign direct investment is a significant source of employment but it will not continue at the same rate. If we look at Ireland's share of the investment by foreign-owned companies in the eurozone, it has fallen from 13% in 2001 to 6% in 2007. Belgium, Finland, Italy and Spain have all increased investment, according to IMF figures for last year. There will naturally be an ebb and flow of creation and reduction in the jobs market but if we examine the figures, the number of jobs attracted here by the IDA is falling. The focus must be on our indigenous companies, small and medium enterprises. We must create an establishment where such businesses can be established and developed. Export-led and export-oriented companies must be the target and must be supported. We all campaigned for the Lisbon treaty on two occasions and the argument was that we were buying into a market of 500 million people across Europe. We must support companies that can identify products and services they can sell to that market.

Forfás recently published the report "Making It Happen" that outlined a range of approaches that must be put in place if we are to return to export-led growth, a key driver of the economy. We should focus on three objectives: fiscal stability, international competitiveness and access to credit. This is continuously sited as the most significant issue facing small businesses across Ireland. Firms that can develop and demonstrate viability are failing to obtain loans because of risk management issues. We know the banks lack the expertise, although they know about construction and buying sites. All that experience will not be used again but the banks have not developed expertise in the operation of business, their market potential or trends.

Does the Government realise that firms need cash? They must weather this recession and invest for future growth, enhance their productivity, embrace innovation and focus on new markets. The credit guarantee scheme outlined here is a way to ensure small businesses that are viable can get access to credit. A similar programme has been established in more than 100 countries; Ireland is one of the few countries in the EU that does not have such a loan guarantee scheme. I appeal to the Minister not to dismiss this out of hand but to look at it in a meaningful way. This is where we have potential but these companies will go to the wall unless there is some form of intervention. I am not saying every small company is viable but there are those, particularly those that are export-oriented, that should be protected by this form of guarantee.

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