Kevin Humphreys (Dublin South East, Labour)

I, too, welcome the Bill. It is good that we can speak in such a positive manner about the actions of the Government in delivering on the action plan for jobs. It is a credible plan which will prove to be another step in creating the right conditions for job creation, which it is important to facilitate.

Deputy Thomas Pringle mentioned foreign direct investment and commented on the thousands of jobs being created. We must concentrate on small and medium businesses and help them to develop and access the funding that will aid this process. Earlier in the year we saw the introduction of the jobs initiative and the reduction in the rate of VAT which drew some negative comments, but the thousands working in the tourism industry have welcomed it. I constantly hear positive feedback about these efforts, including the intern programme. I spoke to one young person yesterday evening who had gained the necessary experience in the market to land a job.

I note that I am speaking to the converted in the House. The parties represented in it at this time are urging a "Yes" vote in the referendum on the stability treaty, which will bring certainty. There is no big bang solution in addressing unemployment and the economic crisis, but small and considered changes or initiatives are required to progress our people towards work. I listened to the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, speak on "Morning Ireland" about the assistance provided from European Investment Bank funds which will be an important aid in getting people back to work. We must also be honest about the problems arising from the large deficit. The funding the Government can put into the sector is limited, although very important.

The credit scheme is welcome. As I mentioned, it will allow small and medium businesses to secure the loans required to create jobs. I have seen new businesses being set up, but there is no real experience in banks to allow entrepreneurs to access funding through business plans, especially in the high technology sector. Before their collapse, the banks were lending with the family home, as mentioned, as well as other property being used as collateral. If the banks ever had the required expertise, they seemed unable to assess proper business plans when produced.

The 75% guarantee figure is right and the provision of €150 million in funding is very positive, as it may benefit up to 2,000 businesses. Nevertheless, I ask the Minister to consider carefully the element of the Bill which details the 2% annual charge to be paid in advance. When businesses are seeking funding, paying such a charge up-front will be difficult. It is almost contradictory that money must be paid in advance; therefore, the Minister should consider this element again carefully. On the positive side, pumping that amount of money into the economy will help to increase tax receipts by as much as €25 million. Therefore, there may be a balanced approach that could help to reduce the up-front charge or phase it in over the course of the scheme. In this regard, it is very welcome that there will be a review after one year. Looking back at a number of initiatives in the past decade, there has never really been an in-depth review to see if processes are operating correctly. It is important that there be such a review.

I live in the south-east inner city and represent Dublin South-East. In recent years I have seen the likes of Google and Facebook being set up, leading to spin-off businesses, some of which are running into severe difficulties. I have seen very good business plans, but the banks are unable to assess them properly because there is no ingrained experience in the system to allow this to happen. There will be growth in the economy in this area and the necessary expertise must be spread across the banking sector. As mentioned, the practice of using the family home as security in giving loans is nonsense. The giving of loans should be assessed on the basis of business plans and there should be further training providing in the banking sector in order to allow proper assessment.

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