Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I have raised this issue twice now. This is the third and, I hope, last time I will raise it. The Minister of State did not respond to it the first two times. I refer to the guarantee scheme. How will the Government ensure that lending from the SBCI to the pillar banks - more than likely at zero interest, given the lending capacity and the credit rating of the EIB - will not be lent on to SMEs that are struggling during this pandemic at higher interest rates that are above the operational costs of the pillar banks? How will we ensure the pillar banks do not profiteer from this 100% guarantee, just as they are doing with the mortgage interest break? I want to hear the Minister respond to that.

Can the Minister give us any indication as to when the Government will make a decision on whether it is likely to apply to draw down lending from the SURE scheme? There is no limit to the quantum of lending that any member state can borrow. Theoretically, we could apply for the whole €100 billion. That is obviously very unlikely, but the lending is for Covid-related expenditure on job retention and job supports. Therefore, there is eligible expenditure already incurred in respect of the temporary wage subsidy scheme. Other expenditure could be also applied, and future expenditure will be incurred by the State in supporting employment in the coming weeks and months. Given the favourable rates available and the fact that the State is borrowing at negative interest rates, which is to be very much welcomed, and I commend the NTMA on the debt management functions it has provided, particularly in refinancing a number of debts, and given that our profile looks very healthy for the coming years, when will a decision be made on a commercial basis as to whether it will be more beneficial to us to access borrowing through the SURE scheme or to paddle our own canoe and go to the markets and raise debt, as we have been doing, to levels that are very healthily oversubscribed and at rates that are very beneficial to the State?

See this speech in context