Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Roimh an briseadh, bhíomar ag caint faoin geilleagar agus na fadhbanna atá againn, go háirithe an fhadhb atá againn mar go bhfuil an córas infheistíochta tar éis briseadh síos go hiomlán. Tá an tóin tar éis titim amach as na bainc agus as an Rialtas mar gheall ar an fhadhb seo. Tá fadhb mhór againn de bharr easpa infheistíochta príobháideach agus poiblí. Sin leath an fáth go bhfuil muid sa bponc ina bhfuilimid ag an bomaite seo.

Dúirt Sinn Féin ón tús, ó 2008, nach mbeadh réiteach againn ar na fadhbanna go dtí go mbeadh airgead againn le cur isteach arís sa gheilleagar. Muna bhfuil an earnáil phríobháideach in ann an t-airgead sin a chur isteach sa gheilleagar, caithfidh an Rialtas a bheith sásta an t-airgead sin a chur isteach. Cuireann muid fáilte anois faoi an chinneadh atá déanta ag an Rialtas anois, go bhfuil sé, faoi dheireadh, ag leanúint straitéis Shinn Féin maidir le seo.

Agus mé ag teacht chun deiridh mo ráiteas, seo atá le rá agam. Caithfidh gnólachtaí beaga na tíre seo a bheith in ann dul chuig an banc nua atá i gceist anseo. An fhadhb atá againn faoi láthair ná nach bfhuil aon eolas ag an cuid is mó de na gnólachtaí thar timpeall na tíre faoi na forálacha nua atá curtha ar fáil in áit na mbanc.

It is important that SMEs are encouraged to look beyond the traditional banking system in this country. This will require a major cultural shift. My colleague, Deputy Pearse Doherty, mentioned that the dependance on overdrafts in this State is far higher than in other EU countries. In order to make a cultural shift in this regard, we need to train and educate people. The local enterprise offices now opening up around the country provide a mechanism for this. I encourage the Government to ensure this is done. SMEs need new, innovative, competitive and flexible credit products to grow their businesses. We have yet to see if the SBCI will deliver on this.

Since the Government introduced new lines of credit, the experience has been that these new lines have not been used enough. Microfinance Ireland was supposed to put €90 million up for small businesses to draw down, but it has yet to achieve even 25% of that objective. As I said earlier, there is a major problem in regard to small businesses which are tied down with legacy debt. I mentioned Morrisey's quarry in Carlow, which has €8 million worth of business on its books. It is an efficient, well organised company, but it is under threat of closure from a bank because of its legacy debts. Also, Spicer's bakery in Meath, which had been on the go since the 1830s, was closed because of its legacy debts.

Firms that are not in danger of closing because of legacy debts remain paralysed in regard to further investment, because they must service their legacy debts rather than innovate, invest, create and build. The pillar banks and farm banks have not been up to scratch in regard to delivering credit. Instead, at a time when we should have seen increasing credit granted, credit into the system has been static. If private and State investment collapse, we will be caught in this lost decade for many more years.

SMEs need the Government to grasp the thorny nettle of SME debt, with one out of every four loans in default and limited lending going into working capital and restructuring. The sector needs a structural solution if the potential is to be realised. Stimulus is necessary. I believe the proposal in this Bill is a stimulus, but stimulus in a straitjacket. The Government needs far more ambition in its objectives with regard to ensuring that funds get to certain sectors in a researched and balanced manner which improves efficiencies, productivity and competitive advantage for businesses in the coming years.

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