John Perry (Sligo-North Leitrim, Fine Gael)

This is the first time the State has provided a microfinance loan facility. The initial fund will be €10 million which it is hoped will leverage further funding from banks and other private bodies. The Government has consulted relevant stakeholders and legislation will be required. The key to the success of the facility will be local involvement through the county enterprise boards or the BIT network which is heavily funded by the Department to the tune of €2.2 million. Involvement by First Step is crucial to the viability of all small companies. There must be due diligence prior to funding small companies. It is not just a matter of giving out loans; management skills, mentoring and development of the company must be taken into account. It is not a matter of giving it initial funding in the hope it will become profitable. Many companies can be made better even without being in receipt of funding. This is the first time the State has become involved in this worthwhile fund. The previous Government talked about it for a long period. We are in the final stages and the fund will announced within a short time.

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