Gerald Nash (Louth, Labour) | Oireachtas source

In regard to Deputy Calleary's amendment No. 5, we debated the role of the SBCI on Second Stage and Committee Stage. In the course of the latter, I introduced a comprehensive new Part 3 to the Bill. This contains provision for the SBCI to work with the Minister through this legislation to continue to enhance the provision of credit to SMEs and to provide a role for the Minister to be able to give counter-guarantees intended to enable the SBCI to unlock funds from EU sources in order to share the risks across the banks, the SBCI, the Minister and the potential EU sources. I believe this is an important new function which will leverage considerable resources from EU programmes, such as the COSME and Horizon 2020 funding that has been earmarked for SMEs, as well as the European Fund for Strategic Investment administered by the European Investment Bank and the European Investment Fund, probably better known as the Juncker plan.

Opportunities exist and we are providing for those within this legislation in order to leverage and unlock funds from EU sources and share the risk across the system. Those innovations have gone a large way towards addressing our shared view for an active role for the SBCI in this area and ensuring that greater access to EU funding for SMEs is provided in an imaginative and innovative way. I hope the Deputy would agree with me on this.

The credit situation for small businesses is improving. The Department monitors this very closely and works with the business representative organisations, the Department of Finance, the SBCI and others to make sure we can achieve our ambitions in terms of finance for growth for the SME sector. Nobody needs to be reminded why we have two pillar banks in this country. That aside, I expect we will see very innovative forms of competition emerging over the next period of time. Just after its establishment, the SBCI is playing a very significant role in terms of providing new sources of funding and new opportunities for SMEs, including lower cost funding to financial institutions being passed on to SMEs and market access for new entrants to the SME lending market, thereby creating real competition. I believe this is creating a much more dynamic environment than was hitherto the case.

I look forward to reviewing figures from the SBCI over the next period as I believe it will be a very significant success. However, it is also important that we reflect on the success of the credit guarantee scheme, notwithstanding the fact that we have reviewed the scheme and taken on board the points made in that review to make sure the scheme achieves its objective. By and large, it has worked. A considerable number of jobs would have not have been maintained or created if it was not for the fact we have this credit guarantee scheme, through which some €16 million in funding has been unlocked, supporting a considerable number of jobs across the country.

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