Richard O'Donoghue (Limerick County, Independent) | Oireachtas source

The importance of the Bill cannot be underestimated. Some 1.5 million people in Ireland are employed by the SME sector, which needs monetary help in order to remain viable. I understand the priority that needs to be given to increasing this fund. Compensation needs to be provided for the rebate of fixed costs and the losses endured by SMEs during the Covid-19 shutdown. The system needs to be simple to operate. An SME accountant can verify the loss of revenue and expenditure during the pandemic. The process can be administered through Revenue.

We need to discuss the issue of clarity regarding the rates charged for borrowing. It should be noted that the current stimulus package is not working. Only €100 million has been drawn down from a package of €6.5 billion. Why is this the case? The answer is that it is too cumbersome. It is not just me saying this; it has been echoed by the Central Bank, chambers of commerce throughout Ireland and KPMG. The rates charged should be related to the cost of fund with a minimum administration charge. The cost of loans needs to be as close to 0% as possible and there should be no repayments for a year.

The current process is far too complicated. The SME sector was a casualty of the Government's request to close. The policing of loans and rent should be monitored by way of staged payments. If debtors are to be paid off, they should need to provide proof that they have been paid. In simple terms, if an SME owes money to a local firm or business and it cannot pay, that will lead to a configuration effect and two companies will close down. Money must be redirected now.

Forty per cent of businesses in Limerick will collapse if compensation is not provided. Businesses are so busy trying to reopen they do not realise how serious the cash flow problem is. They are sitting on the cash. If they do not pay their creditors, creditors too will collapse. The Government needs to support businesses now or it will end up paying out more on the dole. Limerick has a city but it also has a rural county which is very dependent on small and medium enterprises. Confidence will follow.

We need this amending legislation enacted otherwise all of our businesses will close. Is this what we want to see happening? There are businesses working to reopen but the credit controls previously in place no longer exist and suppliers are seeking funds upfront before the businesses can reopen. This is not how we open our businesses. In other countries, businesses are being visited and consulted on what government can do to help. This week, I learned that three publicans in my area will not reopen because they cannot see a future in the business. Yesterday, I visited a pub in Kilmallock where I had lunch, but without a pint. This pub has put in place all of the required social distancing measures while retaining all of its staff.

We need to get funding to businesses now to protect cash flow going forward. There is a simple process by which this could be done. The funding could be provided through Revenue and processed by the accountants therein. We need to stop complicating the issue. We need to engage with businesses on how we can help them to reopen and get our employees back to work and then they will support us going forward.

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