Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

Before the clock starts, I take the opportunity to welcome Deputy Calleary to his new role as this is the first time we have had an opportunity to speak in the House.

As Deputies will be aware, the Oireachtas enacted the Credit Guarantee Act 2012 in July 2012. I signed a commencement order on 30 August 2012. Since the Bill passed, considerable work has been undertaken to prepare the scheme to go live.

This included training workshops conducted with the banks to prepare for the scheme, bilateral legal agreements negotiated with the banks to participate in the scheme, an accreditation process undertaken for banks to participate and the drafting of the necessary scheme under section 5 of the Act. Drafting of the primary legislation and the statutory instrument was complex and time consuming. Nevertheless, we have delivered on our quarterly commitments under the action plan for jobs in terms of the credit guarantee scheme.

With the consent of my colleagues the Minister for Finance and the Minister for Public Expenditure and Reform, I have now made the necessary scheme under section 5 of the Act. The scheme, which is SI 343 of 2012, was laid before the Oireachtas on 13 September. Officials in my Department are working on the final arrangements in conjunction with the participating banks and the operator of the scheme, Capita Assets Services. Launch of the scheme is imminent.

With regard to the interest rate, this will be a matter for the individual participating banks. As required under EU State aid rules, a premium will be charged by the State to companies availing of the scheme. This has been set at 2%.

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