Joe O'Toole (Independent)

This is a classic example of one arm of Government not listening to the other. Over the past four months, we have raised the difficulties faced by small businesses in accessing cash. Up to €10 billion is being put in the way of the banks to help access to cash. This recommendation provides a way in which the State could offer an opportunity to small businesses, in particular, to improve their cashflow in a significant way at no loss. The loss referred to by the Minister of State is an end-of-year one and would only occur for the last three months of the year when the payment date would cross over the limit.

From a quick calculation of the thresholds given by the Minister of State, these would only apply to businesses with an annual turnover of approximately €150,000 a year, which is about €500 a day. That really would not be a business.

I accept there is a cost for the first year. This recommendation is a simple, sensible and practical way in which the Government could control access to credit for small businesses. In giving €10 billion to the banks, one does not know what is going to come out at the other end.

This recommendation allows businesses to have cash for 90 days. For example, if a filling station is stocking up, it must make payments for fuel on a cash-on-delivery or a next-day payment basis. Filling stations always worked on the basis they got a loan from a bank to pay these charges. Nowadays, the banks have repayment schedules that are shorter than the time it takes the liquid gold in the filling station to be sold. Businesses which are under no threat whatsoever are being hit by the lack of access to credit.

I accept the recommendation will not be accepted but I would like it to be taken to the Department of Finance. This is a classic example of one Department addressing one matter while the Department of Enterprise, Trade and Employment addresses the lack of credit. Senator Quinn's recommendation is a practical way of dealing with a problem all Members have raised over the past several months. It is worthwhile examining.