Dáil debates

Wednesday, 20 October 2010

Loan Guarantee Scheme: Motion (Resumed).

 

6:00 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)

I commend Deputy Perry on tabling this important motion. What comes across loud and clear is that Fine Gael can see the wood from the trees when it comes to the support necessary for our small and medium-sized businesses. However, this awareness contrasts starkly with the extraordinary lack of will by the Taoiseach and his Government to face reality and get the country back to work through a dynamic lending scheme and jobs strategy.

A fact that must be acknowledged is that small and medium-sized businesses are facing liquidity problems. This follows a decade in which small and medium-sized businesses have been virtually ignored while the focus has been on foreign direct investment despite the fact that small and medium enterprises provide 70% of employment in the non-financial sector.

Last June, a Longford man, Dr. Ciarán Mac an Bhaird, published a new academic book on financing small and medium-sized enterprises. He described such businesses as the cornerstone of the Irish economy. However, he highlights the fact that small firms in Ireland are in deep trouble and are struggling to stay alive. I am very much aware of this from speaking to people in small businesses throughout my constituency in both Longford and Westmeath. Dr. Mac an Bhaird said that these businesses need a level playing field with regard to tax incentives and that the old bank lending system must be replaced by a different means of forwarding finance to small and medium enterprises.

It had been hoped that the Government loan guarantee scheme would boost the small and medium businesses sector. Once again, however, we see the Taoiseach wriggling like a worm on a hook to escape another commitment to Irish businesses. It is very revealing that there is an absence of reference to the scheme in the Government's amendment to the motion. What the Government cannot deny is that it has sidestepped this issue, and this has always been the case.

It is now nearly a year since the Taoiseach first proposed the loan guarantee scheme in a statement worthy of his predecessor. He has since said that the issue needs to be looked at very carefully because we have already given credit lines from the banks to ensure, on the basis of their successful recapitalisation, that they will be in a position to have credit lines to business. I wonder does he know what he means by that. It is as confusing as something Deputy Bertie Ahern would say, only the Taoiseach is using bigger words. This is an example of Cowen language.

Also last April, the Minister for Enterprise, Trade and Innovation promised 40 jobs for Mullingar, raising hopes that have since been dashed of increased jobs in a local company. Such false promises are a normal part of the Government's spin, grabbing the headlines in the name of the Government with no follow up and no regard for those who have been conned.

I again commend my colleague, Deputy Perry, on putting forward this important motion. Hopefully, common sense will prevail and it will be agreed by all Members of this House.

Comments

No comments

Log in or join to post a public comment.