David Cullinane (Sinn Fein)

I move amendment No. 3:

In page 9, before section 11, to insert the following new section:

11.—The Minister shall within 12 months and every 12 months thereafter, from the passing of this Act prepare and lay before Dáil Éireann a report detailing the impact of all measures contained in this Act on the availability of credit to SMEs, rates of bank lending to SMEs, levels of lending under the scheme and relevant default.".

I welcome the announcement by the Minister during previous debates in both Houses that he intended to review the legislation after one year. The amendment would give expression to this commitment by including a provision requiring that an annual review of the scheme be carried out. This would be a positive measure in terms of the accountability of the scheme which has the potential to create a large liability on public funds. For this reason, the scheme needs to be closely monitored.

We must also ensure the legislation is effective and fit for purpose and will do what it says on the tin. In that context, it is important that legislators impose conditionality when passing legislation establishing schemes that will cost money. In this case, we should impose conditionality on businesses which will benefit from the loan guarantee. The stated purpose of the Bill is to sustain jobs and businesses. In such circumstances, we must ensure the Government carries out reviews which analyse whether the outworkings of legislation correspond to its objectives. The Minister of State should not have a difficulty accepting the amendment.

The explanatory memorandum states the Minister shall have the power to review and revoke the scheme and assign a contract or oversee its operation. In that context, it would be useful to receive a report from the Minister setting out the success or otherwise of the scheme to be established once the Bill has been enacted. On that basis, this is a straightforward amendment, on which I do not propose to delay the House any longer. Its purpose is purely to ensure sufficient accountability in the operation of the scheme. I hope the Minister of State will accept it in the spirit in which it is proposed. It would give Members an opportunity to require the Minister to produce an annual report evaluating the effectiveness and operation of the scheme which enjoys the support of all Senators.