Ciarán Cannon (Galway East, Fine Gael) | Oireachtas source

I move: "That the Bill be now read a Second Time."

I am pleased to present the Strategic Banking Corporation of Ireland Bill to the House. This is a significant Bill, providing for the establishment of the Strategic Banking Corporation of Ireland, or the SBCI. By increasing the availability of longer term flexible debt finance, which is appropriately priced, the establishment of the SBCI will provide SMEs with access to the type of patient intelligent capital that will increase productive investment, encourage growth and generate additional employment opportunities. In this way the SBCI will play a key role in reinforcing Ireland's economic recovery.

As a wholesale lender, providing funds to on-lending institutions, the SBCI will enhance the supply of funding by both using existing channels and encouraging new entrants into the market. The provision of loans that are designed to meet the customised needs of SMEs should incentivise demand and build confidence in the SME sector, thereby encouraging investment in growth and employment.

The Government recognises that SMEs are the backbone of the economy employing nearly 70% of the total labour force.

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