John Perry (Sligo-North Leitrim, Fine Gael)

The scheme will be rolled out in the first quarter of next year. We have to have confidence in the banks because how can they make profit without viable SMEs, which represent the backbone of their business? This partial loan guarantee will not be a substitute for bank lending. It will only guarantee loans for businesses with, for example, a new market or product range where there is a certain element of doubt. Some 650,000 people are working in 200,000 small companies. It is important to have confidence among employers and employees. Much of the money is not being spent in the economy when one considers the level of savings being made. To support small companies in the real economy we need to spend locally and buy for Ireland to get the confidence rolling. Unfortunately many of the businesses that were viable two years ago are no longer viable because domestic spending is low. Clearly no bank will give money to an operation that is losing money. It is equally about the mentoring of a business and we are very confident that the banks will start working with the accountants and others on matters such as due diligence or the company business plan as this requires a partnership approach.

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