Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I am sharing time with Deputies Flaherty and Crowe. The Government has my full support. This legislation to extend the option of overdrafts, term loans and working capital for small and medium-sized businesses that have been severely hit by the Covid-19 pandemic is welcome. It is important that we support viable businesses and ensure that our entrepreneurs do not go to the wall because of something that was completely beyond their control.

I am keen to encourage robust scrutiny of this loan scheme to ensure that the taxpayer will not be on the hook because we failed to engage in due diligence at this stage of the process. It is important that these credit agreements will be accessed not only by those who have the means but also by those who do not.

I wish to raise another issue. Some banks refused to issue mortgages to people who were put on wage subsidy schemes. Are businesses going to suffer the same fate? These businesses abided by the public health advice, closed for the pandemic and are now reopening with less potential for profit than before. Will they be denied these loans because their bank balances are less pretty than they were previously?

The Credit Guarantee Act 2012 and the subsequent amending legislation refer to where a participating finance provider fails or refuses to comply with the terms of a credit guarantee scheme and provides that the Minister may withdraw a guarantee given in respect of any qualifying finance agreement to which the participating finance provider is a party. Is there are a commitment in respect of businesses if banks refuse to lend to those which have traded at a loss in recent months but which had been viable previously? Will they have some recourse? Does the guarantee provide that these businesses can still qualify for the credit facilities? Obviously, we cannot interfere with the day-to-day running of the banks. However, can we assure those who might want to apply that the banks will lend? Have the main financial providers told the Government that these credit facilities can be accessed immediately? What is the timeline regarding decisions? Can businesses receive guidance on how long they can expect to wait for approval?

I want to ask about VAT. I have been speaking to those in hospitality and the vintners. I have had several Zoom meetings with them. The biggest issue they face is the need for a reduction in VAT to 9%. They believe that will keep their doors open. Is there any way we can do that to keep this sector going?

I have also had Zoom meetings with barbers and hairdressers and other small businesses. The biggest concern they have is that we will go into a second phase of lockdown. If we do, some believe that it will not be viable for them to reopen and they will not be able to keep their doors closed. This morning, I listened to RTÉ Radio 1. A health professional was interviewed and outlined his belief that are we looking at the prospect of staying in our counties again. The biggest issue is the schools. These are all major issues for businesses. Perhaps the Minister of State could come back on this point.

The main thing is a commitment to manage the uncertainty for businesses in order that they can survive. Is there any way we can look at the fact that online businesses outside Ireland are free to advertise their prices without VAT while Irish companies cannot do so? Obviously, the customer pays the VAT, but it seems unfair to Irish businesses trading online that they are immediately at a disadvantage. Maybe the Minister can come back to me on this matter.

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