Carol Nolan (Laois-Offaly, Independent) | Oireachtas source

I want to begin by wishing the Minister of State every success in his new role, particularly as, now more than ever, it is very important to get businesses back up and running. I ask him to ensure that as many of our SMEs as possible survive. I welcome the opportunity to speak on this important Bill.

As we know, microenterprises are the beating heart of the local economy. To get that heart pumping again, we must ensure that the Government and local authorities get back to basics. They must remember that well over 90% of all of the trade in the State involves SMEs and microenterprises with fewer than ten employees. In April, I asked the Minister of State's predecessor, the current Minister for Employment Affairs and Social Protection, Deputy Humphreys, if she would consider implementing a nationwide shop local campaign to encourage people and communities to support local businesses because there is, as we know, a need now more than ever to make sure that our businesses are adequately supported, helped through every step and made aware of the schemes that exist in order to ensure their survival.

Each year we run the fantastic Tidy Towns competition. It would be great if there was something similar at national level for towns which have contributed the most to bring about a genuine shop local spirit. As chair of the retail consultation forum, the Minister of State will be acutely aware that Covid-19 has brought particular challenges for small and large retailers across the State. That is why I was somewhat taken aback last week when he announced that the projected gross expenditure for the Department in the original Estimate was €970.9 million. That is a lot of money, but, as he noted, it represented an increase of only €21 million on the 2019 Revised Estimates allocation. Is he certain that his Department will have sufficient resources to deal with the scale of the problem that exists for microenterprises?

Section 6 seeks to make provision that Microfinance Ireland may borrow money from a promotional financial institution, but that the aggregate of any borrowings at any one time shall not exceed €100 million. That is a significant sum of money, but do we believe it will be adequate to fulfil the task that lies before us? As the Government has acknowledged, the unprecedented circumstances of the pandemic have resulted in a swiftly evolving landscape for enterprises. This will mean that it must keep the supports provided under review and utilise the appropriate mechanisms to adjust and amend the supports and their timeframes accordingly. This is vital.

We have to create a space in which the voices of local retailers are heard, and not just heard but acted upon. As I said, everything needs to be done to ensure that they are supported and helped in their struggle for survival. Small businesses are being lumped with levels of debt that are unsustainable in the short term. This matter needs to be examined. Many owners of small businesses have told me that they do not want to incur debts and would instead prefer supports.

We know from the most recent report from Microfinance Ireland that to the end of December 2019, 346 businesses have failed and 2,085 loans were drawn down. If those were the circumstances which pertained in 2019 prior to Covid, we can only anticipate how much worse things will be from here on. It was also recently reported that investors in Irish banks in which the Government holds large stakes are nervous about the sector and about facing high levels of bad loans if they continue to lend to small businesses without the types of credit guarantee schemes that have emerged elsewhere in Europe. Small businesses need guarantees that applying to access funds will not be the straw that breaks their backs. They will need more than warm words, rhetoric and easy money put before them. They will need assurances that if they try their best to retain employment in local economies that they will not be punished but rather supported. I will end on that note.

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