Peter Fitzpatrick (Louth, Independent) | Oireachtas source

I welcome the opportunity to speak today and I welcome the Bill in principle. The full effects of Brexit are not yet being felt. Coming from a Border area, I know the real consequences of Brexit will be enormous. We are starting to see that already as the cost of goods is starting to rise. I know from speaking to people in many businesses in the construction sector that there are substantial price increases on the way, for example. Raw material prices are increasing across the board by as much as 30% and 40% in some cases. This will have a devastating effect on the cost of housing, among other things. There is also a fear that Brexit and the Covid-19 pandemic are being used by many companies as an excuse to raise prices. I would be extremely disappointed if it emerges that that is the case. The issue may have to be looked at.

Getting back to the Bill before us, although I support it, I have reservations as well. It is stated that the total cost of this Bill will be at most €50 million and that the cost to the Exchequer of the Brexit impact loan scheme will be a maximum of €29 million. In theory, there will be no cost to the Exchequer as these will be loans given to businesses that will be repaid. Could we get a breakdown of the figure of €29 million as it seems to be extremely low? There will be thousands of business affected by Brexit and €29 million will not be enough.

It is important that we also discuss how these and similar schemes are operated. I have engaged with a number of businesses in the Dundalk area that have tried to access these schemes over the past 12 months but have found it very difficult to get approval. The red tape in many cases has been the issue. Surely in this day and age we can introduce systems and procedures that will eliminate such red tape.

A number of the schemes are being operated by the banks on behalf of the Government. Businesses feel they are simply applying for a bank loan in these cases and not a Government-backed scheme. The banks are operating normal credit criteria, which really defeats the purpose of these schemes. The reason businesses are looking for help is that they have been affected by Brexit and the Covid-19 pandemic. How can these businesses be assessed on normal credit criteria terms in this case?

I should be clear that businesses welcome this scheme that has been introduced by the Government but we must not have a scenario where they cannot avail of them because the banks are applying normal credit criteria. These are not loans in the traditional sense but rather supports to help businesses get through Brexit and the Covid-19 pandemic. These are supports to help businesses with liquidity issues as a direct result of Brexit and the coronavirus pandemic.

In principle I support this Loan Guarantee Schemes Arrangements (Strategic Banking Corporation of Ireland) Bill 2021. However, I have raised the question of the relatively low amount that is being forecast to be required. It should be a much greater amount. I also urge the Government to examine the administration of these and similar schemes to ensure businesses that most require support actually receive it. We cannot have businesses drowning in a sea of red tape when trying to access these schemes. Finally, we must look at how the schemes assess the suitability of applicants and again ensure that those businesses that actually need the support get it.

I come from Dundalk and like in every town and village in the country, businesses are struggling there. Many of the businesses in the town are family businesses governed by tradition. The bottom line is they do not want to give up and they are fighting morning, noon and night. This process is meant to be about Government loans but people have to speak with people in banks. All they want is a bit of clarity.

A colleague mentioned the word "communication" and no matter which walk of life we are discussing, communication is very important. Has the Minister of State sat down with many people representing businesses over the past few months? I am sure he has sat down to see what businesses need to keep going.

This morning, I spoke to the Taoiseach about the introduction of a minimum price per unit for alcohol sales, saying that if we increase the price of alcohol next January, people here could suddenly have to pay double the price charged for the same product in the North. People living in Dundalk and the surrounding areas will be able to go 10 km across the Border and buy those products at half the price. How can we compete when those products will be half the price?

We must be practical and understanding. Let us try to listen to the people. If the Government gives people the opportunity to get a proper loan and get businesses back on solid ground, this country will be a far better place.

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