Peadar Tóibín (Meath West, Sinn Fein)

That is not true. The Minister for Jobs, Enterprise and Innovation said on Committee Stage that a charge of 0.8% was necessary to ensure it was within the bounds of State funding. There is no legal imperative on the Government to impose a charge of 2%. State aid schemes administered by county enterprise boards and other bodies carry a charge of less than 1%. The figure of 2% has been chosen by the Government, for whatever reason, and it is over and above the necessary administration cost. During the debate on Committee Stage we were told the charge was to cover potential losses within the system, but we were not given the details of these potential losses. The Minister undertook to return to the select committee with the loss element of the 2% charge, but he did not do so. That 2% is, without evidence to the contrary, an arbitrary figure and one that is a cost on small businesses, which find it difficult to survive. I understand that it is necessary for the Government to focus on viable businesses. I will not argue with the Minister of State, Deputy Sherlock. I agree that viable business plans are necessary in order to convince for this level of credit. It would be wrong for any Member to expose the State in a scheme that would further its loss of funds. However, the microbusiness element, which is a key sector in society, is not being dealt with in the legislation. It is part of the pipeline of new businesses that come into the economy. I presented the case to the Minister previously that the European Progress Microfinance Facility had produced €200 million as far back as March 2011, which was approximately the date on which he received his seal of office. As of yet, apart from a small amount going into an organisation called First-Step Microfinance, there has not been significant drawdown by the State for the purposes of microfinance facilities. As far back as last March, 11 other countries in Europe had drawn down funding, including Bulgaria, but this State has not. I urge the Minister to focus on the microbusiness element of society that is without funding.

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