Patrick O'Donovan (Limerick, Fine Gael)

I welcome the opportunity to contribute to the debate on this important piece of legislation which is contained in the programme for Government. It is somewhat unfortunate that some people bemoan the amount of money involved as being very small. Those familiar with the small business sector, however, will know that many small firms are currently being operated on a shoestring. The sums referred to in the legislation, in or around €15,000 or €16,000, are not insignificant to many small businesses. For those of us who were not educated in private, fee-paying schools in leafy suburbs, it is a significant amount of money which will, in many cases, keep businesses open. It is a little disingenuous of those people, whom I would refer to as caviar socialists who put profit before people rather than people before profit, to be attacking the Government for introducing a measure which is being sought by everyone in the small and medium enterprise sector.

That this legislation is being introduced is an admission that our banking system is operating in a quasi-dysfunctional manner. That the Government is in the process of establishing a microenterprise loan fund to assist companies who have been refused credit by the banks, which are being kept open courtesy of the taxpayer, to sustain jobs is a scandal. However, as stated by a previous speaker, we are where we are. The commercial banking sector needs to be reminded again of who is keeping it going, namely, the Irish taxpayers. Despite this, we are now putting in place another loan facility to keep our economy ticking over, which is regrettable but necessary.

While the foreign direct investment and agri-food sectors are doing well our domestic economy is as flat as a pancake. As such, anything that can be done by way of this €90 million fund, which is not as some would claim an insignificant amount, to support 5,500 enterprises over ten years is to be welcomed. That we may also be able to access a similar fund from Europe, if the charitable status of that fund can be addressed, indicates further growth in this area into the future. I welcome that the Bill provides that the annual accounts in terms of this fund will be audited by the Comptroller and Auditor General and subject to scrutiny by the Committee of Public Accounts. However, I am concerned about day-to-day operation of the fund. It is important people believe it is worth their while applying for money from this fund, which will be the last chance saloon for many businesses. We must ensure that those making the decisions in terms of the release of these funds have a business acumen and can understand and appreciate the risks, business plans and business models put before them. This is important if jobs are to be sustained. I am sure that other Deputies are, like me, also being visited at their clinics by business people who are at their wits end by virtue of their treatment by the commercial banking sector, which is, by and large, owned by the Irish taxpayer. We have a duty to assist these people.

It was on the back of the small and medium enterprise sector that much of the property bubble was built, in respect of which they or at least most of them paid huge amounts of income tax and VAT and other related taxes. Many of these people have fallen on hard times and are not eligible for social welfare benefits. Many self employed people literally do not have money to put bread on the table and have no access to a credible social welfare fund because they were never asked to pay the appropriate stamp. This issue needs to be addressed by the Government as a matter or urgency. While I am aware that the Minister for Social Protection, Deputy Bruton, is looking into it there is an urgent need to assist self employed people who, ultimately, are the backbone of the economy.

I welcome the establishment of the fund. It is regrettable we have had to introduce it but the banks have failed us despite that we were there when they needed us. I believe this is a step in the right direction and is part of the overall jigsaw of getting Ireland back to work.

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