Cormac Devlin (Dún Laoghaire, Fianna Fail) | Oireachtas source

I welcome the opportunity to examine the Loan Guarantee Schemes Agreements (Strategic Banking Corporation of Ireland) Bill 2021. I thank the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Varadkar, and the Minister for Agriculture, Food and the Marine, Deputy McConalogue, for bringing the Bill before the House. The Bill introduces the legislative basis to implement the Brexit impact loan scheme. Once launched, this scheme will be open to SMEs, specifically small and mid-sized companies which have up to 499 employees.

Particularly welcome is the extension of the scheme to businesses engaged in the farming and fishing sectors. I welcome the scope of the proposed arrangements, with flexible loans ranging from €25,000 to €1.5 million to be made available to eligible businesses. The flexible terms of between one and six years, discounted interest rates and loans of up to €500,000 to be made available on an unsecured basis will be particularly welcome. The scheme will provide an 80% guarantee to participating lenders on loans to Brexit-impacted businesses and will be underpinned by a counter guarantee through the European Commission’s pan-European guarantee fund, which is managed by the European Investment Bank. The new scheme, which will be administered by the Strategic Banking Corporation of Ireland, will make up to €330 million in lending available to help businesses to continue to respond to Brexit.

In many respects, the Covid pandemic has masked the true impact of Brexit in Ireland. As the uncertainty around the pandemic ends, businesses will continue to need help to deal with the consequences of Brexit, particularly when Britain brings in border or customs controls later this year. Access to finance for these businesses is critical, particularly for those businesses impacted by Brexit. This scheme will deliver important supports for the fishing, farming and food sectors and for businesses generally as we seek to ensure their ongoing viability. I welcome this Bill and I ask all Deputies to support it.

It is important that in the roll-out of the fund, a system will be put in place for businesses that have been trading for a number of years and are not just new entities applying for the supports. It is important that where a fund exists, it is targeted at such well established businesses and those that are particularly hard hit by Brexit or other factors. I mentioned the North and potential customs controls coming in. These businesses will require support. The previous contributor spoke from the perspective of the Border region. It is important that businesses in that region are given supports because, arguably, both the fishing and other sectors will be hit hardest.

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