John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank Deputy Calleary for raising this important issue. Microfinance Ireland, MFI, began operations in October 2012. It is the first time such a scheme has been put in place in Ireland. By its nature, the scheme is demand driven. To date there have been 295 applications and 107 approvals for a sum of €1.62 million. Some 237 jobs are estimated to have been supported through the scheme. We had hoped at the outset that there would be 500 applicants and a drawdown of €8.8 million. We all have the same objective of making people more aware of the scheme and its benefits.

A key challenge for MFI is to ensure people are aware there is support for new and existing viable microenterprises with perceived or real higher trading risk and which have been refused credit by banks. The modification that banks no longer have to refuse applications is welcome. I am glad to announce that change as banks were taking too long to make decisions. We have received clarification that a general indicative approach from the bank is sufficient ground on which to make an application. That will accelerate applications considerably, which is good news. An information pack will be delivered to all Deputies over the coming week with details of the revised website and new structures to promote this end. There are ongoing promotional and awareness activities to ensure awareness of the scheme is promoted to its full potential among relevant microbusiness groups across all sectors of business.

National and local radio advertising continued throughout the period of January to June 2013. During this period, two main bursts of advertising were commissioned to support both national and local audience reach, including Newstalk, an RTE prime time listenership radio package and 21 local radio stations. MFI has also undertaken a number of other publicity and awareness raising activities, including targeted media releases resulting in coverage in various newspapers, access to finance seminars, breakfast briefings, etc. It is doing its utmost to promote the scheme. Banks were taking too long to give a refusal because there was a requirement for a certification letter. As the main news today is that that is no longer necessary, it will be more effective than any campaign.

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