Jack Wall (Kildare South, Labour)

I congratulate the co-chairman, Deputy Joe McHugh, who is present in the Chamber, and his co-chairman, Mr. Laurence Robertson, MP. I especially thank Deputy McHugh for the arrangements he made for the occasion and its historic nature in that the British-Irish Parliamentary Assembly, BIPA, met in the Seanad Chamber. It is a long time since there was such a strong ministerial presence at a BIPA meeting, which included the Taoiseach, the Minister for Health, Deputy Reilly, the Minister for Transport, Tourism and Sport, Deputy Varadkar, and the Minister of State, Deputy Brian Hayes. That added a new level to the event. As Deputy Patrick O'Donovan stated, it set the bar very high for future BIPA meetings. I heartily congratulate Deputy McHugh in that regard.

Many issues were discussed. Deputy Heydon referred to the sugar industry. Deputy Ann Phelan and I share his concern about the fact that the industry was lost to this country through a lack of initiative on the part of Government and the company involved. The statements made were true and factual in terms of the effort to reinvigorate the industry. The sugar industry would back up the agriculture industry which is going so well at present. If we could reinvigorate the sugar industry it would be another jewel in the crown of the agriculture sector and would mean this country would move away faster from the economic downturn to a positive situation. The spin-off effect of the sugar industry had to be seen to be believed. As a former employee I saw it at first hand.

As Deputy Mattie McGrath indicated, I was chairman of a committee. I sincerely congratulate and thank Ms Jullee Clarke, the clerk of the committee, and Ms Judith Boyce, her counterpart in the UK, for the time and effort they put in to ensure we got such a representative range of presentations at all the meetings we held in London and Dublin. Some of the conclusions that were reached should be read into the record of the House. Small and medium enterprises are one of the pillars of recovery from the current situation.

1.1 Small and medium sized businesses are of huge importance to the economies of Ireland and the UK, and a thriving SME sector will be an indispensable ingredient for economic recovery. We are encouraged to hear about the many initiatives which have been put in place by both Governments to engage with the sector, promote its growth and ease access to finance.

1.2. If SMEs are to have confidence in provision made for them by the banking system, it is vital that accurate, consistent information about bank lending is available. The SME Finance Monitor survey in the UK, and the analysis of the Credit Review Office in Ireland, are both invaluable in this regard. We support the CRO's efforts to publicise its service more widely. It is also important that SMEs be encouraged to make formal applications for finance and have access to the support they need to do so. This support includes access to skilled and knowledgeable staff in bank branches.

1.3. In the present economic circumstances, it is likely there is some suppressed demand in the SME sector for bank credit. However, as the economies of our countries recover, demand will surely far outstrip supply, particularly as there will be no quick remedy for some of the identified current issues, such as a concentrated banking market. The UK's Breedon Review has highlighted an alarming prospective shortfall of bank lending over the next four years, a finding which has important repercussions for Ireland as well, given the importance of UK-based banks for the economy. Businesses will have to look beyond the banks, to non-traditional finance streams such as equity funding, angel finance or peer-to-peer investment. Both Governments also need to respond urgently, firmly and imaginatively to the implications of the Review.

1.4. This is new territory for most small businesses. They will need support to take advantage of non-bank finance options: expertise either in-house or readily available from trustworthy external sources, clear and timely information about what the options are and how to access them, and Government action if necessary to promote a diverse range of finance routes. We urge both Governments to prioritise these actions so that our small and medium sized enterprises can reduce their dependence on bank lending over the longer term.

Those are some of the recommendations of the committee. We hope that at some stage in the near future one of the committees will take the report on board and hold an in-house debate to allow a wider scope for Members of both Houses to contribute. The report should be used as a launch pad for the recovery of SMEs that are so important to our economic recovery.

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