Rose Conway-Walsh (Mayo, Sinn Fein) | Oireachtas source

The Central Bank issued a report on the SME sector yesterday and it made for very stark reading indeed. It tells a story of less money coming in. Some 39% of firms report that invoices have gone unpaid. Small businesses are struggling to get banks to lend to them. Unpaid invoices have a knock-on effect on the whole of the supply chain and we need to be conscious of that. Whether we are talking about a small food supplier, a self-employed person or whatever else it may be, the negative multiplier effect, in that sense, is something for which we need to watch out because businesses will be collapsing under the radar.

All this has meant that staff have been let go, payments have been deferred and businesses have been forced to close altogether. I am glad to see this common-sense Bill and a willingness on the part of the Government to adopt recommendations from Sinn Féin. That said, I strongly urge the Minister to look at the rest of the proposals made by Sinn Féin. The Bill improves the credit guarantee scheme but we need to do far more. This legislation does not get us away from the fact that an injection of cash through grant aid is required. Sinn Féin has spoken about that necessity and has acted accordingly in the North by supplying grants for small businesses.

We know that small businesses are struggling right across the country. For example, coach and bus operators are struggling, as my colleague, Deputy Stanley, mentioned. Those businesses have been hit extremely hard. I have been in contact with owners of such businesses in my constituency and despite how hard their businesses have been hit, they are clear that they can only stay in business if there is genuine support for them. They are watching the activities of the Dáil with interest and hoping that no one in the Government is asleep at the wheel. Those business owners agree with Sinn Féin's assessment of the credit guarantee scheme. They knew straightaway that it was badly designed and would mean higher interest rates that would be of little assistance to small businesses such as theirs. The amendment is a small step in the right direction towards supporting industries such as the coach tourism sector and many others but more needs to be done. The country cannot function without a proper transport system that serves all areas, no matter how remote. The business owners that I am talking about have invested heavily, are already carrying debt and cannot bear any more, particularly at high interest rates.

Much has been said about the opening of so-called wet pubs. Regardless of the rights and wrongs of this, they have been asked by the Government to stay closed for the safety of everyone, like many other businesses. Owners of such pubs need to know that the Government is doing all it can to put the necessary supports in place. The Government cannot make decisions in isolation. It must ensure that these viable yet vulnerable businesses are supported in order that they can continue to trade. It must work with the Opposition and listen to our ideas, not dismiss them out of hand for political reasons.

The accommodation and food sectors have experienced an extreme shock across the board. The Central Bank, in its report, states that 77% of businesses in the sector have reported turnover more than 75% below normal. We must look at the supply chains in that regard, as we must with dry cleaners and launderettes. Between 60% and 80% of income in dry cleaning and launderette businesses comes from the hospitality sector. It is important that dry cleaners and launderettes are considered and aligned with the hospitality sector so that we can keep those businesses up and running.

The Bill increases to 80% the portfolio cap in the Government's Covid-19 credit guarantee scheme and I welcome that, although it should be higher, as Sinn Féin has suggested. Without the removal of the cap, banks would refuse to lend to small businesses in dire need of affordable loans. As has already been said, Sinn Féin is proposing a cap on interest rates at 2.5%. The interest rates on the loans provided to date are too high.

The issues were flagged by Sinn Féin shortly after the loan scheme was announced in May. This was communicated to the Minister for Finance and the Minister with responsibility for business. My earliest contribution in the Dáil was on interest rates and the amount of money the banks would be making on the back of these struggling businesses. The reasons loans would be unattractive to smaller businesses were outlined. Today, one of these issues is being addressed. I urge the Government to look at the other issues highlighted as a matter of urgency. Businesses need a minimum of a 12-month window guarantee before they make repayments on loans and they also need guaranteed low-interest payments.

There is so much uncertainty about the future. The situation regarding a vaccine is evolving. I hope we will have a vaccine sooner rather than later. However, we will not get back to a normality whereby these businesses can trade until there is a vaccine in place. That needs to be reflected in terms of what the Government is doing. These are vulnerable but viable businesses that we depend on for employment. We depend on having these businesses in our communities to allow them, particularly those in rural Ireland, to be prosperous and viable.

I welcome the Bill, but much more needs to be done. The key words are "simplicity" and "urgency" in the context of getting the money to the right places at the right time.

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