Louise O'Reilly (Dublin Fingal, Sinn Fein) | Oireachtas source

I thank the Leas-Cheann Comhairle for the opportunity to speak to the Bill this evening. The Oireachtas Joint Committee on Enterprise, Trade and Employment had a very healthy discussion on this Bill some weeks back. Due to the need for the expedient passage of this legislation, we agreed to waive pre-legislative scrutiny. The Minister of State will know that I have no difficulty with waiving pre-legislative scrutiny on legislation. It is a very bad habit to get into, however. Everything cannot be a crisis and it is necessary sometimes for us to have pre-legislative scrutiny. It is a very important part of scrutinising legislation as it provides a good opportunity for debate. That said, we did not have difficulty with waiving it in this case. I am, however, conscious that it can, and has in previous instances, develop into a habit. It is not a habit I would like us to get into.

I thank Mr. Declan Hughes from the Department, who appeared before the committee to discuss this legislation and answered a good many questions from its members. The need for a loan guarantee scheme for small and medium-sized enterprises affected by Brexit and Covid-19 is apparent to all of us. It is particularly true of small and medium-sized enterprises and the agricultural sector.It is for that reason these businesses have been prioritised in this Bill and the scheme which will come from it.

While we support the Bill and the moneys it will help to loan out, as is ever the case, difficulties for businesses in accessing these moneys comes from what happens between the passing of the Bill and the actual loaning out of the money. The design of the scheme, length of repayments and interest charged all contribute to the success or otherwise of such a scheme.

We have seen this throughout the Covid crisis. Some loan schemes are more attractive than others. It beggars belief that in cases where the State has backed loan schemes which are not popular, the moneys behind those schemes are not moved laterally to better performing loan schemes where they can actually be of some use. I refer to loan schemes that people are using and from which they want to benefit. It is either that or engage with businesses to figure out what the issues are and rectify the schemes that have a low take-up.

I know the Minister of State will acknowledge this because he sees it in the figures he gets. Some of the schemes are very popular. They have immediate engagement and much of the money is drawn down. Other schemes are not as popular and should not be left to languish and elapse.We need to see the Minister of State being proactive in this regard.

I note this scheme has a built-in review. I hope the preliminary assessment into the performance of the scheme will be carried out within six months to a year, but definitely no more than a year and preferably within six months. It is now, when Covid-19 and Brexit are hitting the hardest, that small and medium-sized enterprises and family-run businesses will need access to credit.

The twin crises of Covid-19 and Brexit have caused untold difficulty for businesses but there is some light at the end of a very long tunnel. There are opportunities for SMEs to expand in domestic operations and with regard to trading internationally, especially within the EU.

The exit of Britain from the EU and the Single Market leaves trading opportunities with our European counterparts. I have no doubt there is scope for indigenous SMEs and agribusinesses to expand and secure some of these trading opportunities. The role for the Government and for us in the Oireachtas is to help facilitate this. That is why these schemes are important and why it is crucial that they work effectively and efficiently.

The reality is that the State is a critical player in the economy, economic development and economic direction. We have seen this with progressive governments across Europe and with the Biden Administration. It is up to the Government to play its part in working with businesses, workers in the trade union movement and others to help deliver a more robust, progressive economy, a high-wage, high-productivity and a high-growth economy that will provide for everyone. That is the best way to deliver for business and workers, especially as we exit this Covid crisis.

As much the Minister of State would love it, we cannot go back to the status quo, which was low pay, precarious work and insecurity for workers in many industries. We saw that with the Covid pandemic. We cannot go back to the status quo. After the financial crisis and the austerity years, the economy was simply put back together the way it was. This has not worked for ordinary people, workers or any of our indigenous SMEs and family-run businesses. Post Covid-19, we cannot go back to business as usual and simply have a reconstitution of the economy back to the same way that it was. I will borrow a phrase from Joe Biden, who I know borrowed it from someone else: we have to build back better.

We will be supporting this Bill. I have tabled an amendment on Committee Stage, which I hope will elicit some detailed discussion with the Minister of State regarding the particulars of the scheme. I look forward to some informed discussion and debate this evening.

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