David Cullinane (Sinn Fein)

That may be part of the problem. We cannot allow the fund to be a sticking plaster solution for the even larger problem of the banks not lending to businesses, especially to viable ones. The legislation is seen as a reasonable attempt by the Government to deal with the problem. We, as taxpayers, own some of the banks and we must ensure that the banks are doing what is in the best interest of the country. At the moment that interest is best served by lending to the economy and lending to businesses and individuals that need the money.

We will support whatever initiatives are put forward, including this initiative. Steps need to be taken to provide aid and support to SMEs and we would support such a move. I agree with the Minister of State, and my party has consistently said it, that SMEs must be the bedrock of our economy, especially local economies. As Senator Moloney has said, the days of large numbers of multinationals coming here are passed. Perhaps they are still coming but not in the numbers that they did.

I would welcome a debate on the Enterprise Ireland report that the Minister of State mentioned earlier. He gave the figures for the rise in exports. There is also a clear view that many SMEs, especially small ones, struggle when it comes to accessing markets and exporting. Larger companies can employ people to help them to work on a system. Enterprise Ireland needs to focus on the area. Perhaps it could help in a reorientation of policy and focus on the area. It is important that we help as many SMEs as possible to access markets. There is massive unemployment in the south east and it is difficult for us to see so many SMEs struggling. The south-east region is simply not performing and many people living locally and in the region are asking why. We have access to markets. We have two ports, one in Wexford and one in Waterford, yet the region is still not performing. I hope that a wider discussion on the issue will take place and that my questions will be answered then.

I welcome the Minister of State's clarification of the 2% figure. He said that section 8 provides that "the borrower shall pay to the Minister" the loan at a rate of 2%. It is a loan guarantee that the State gave to these companies for when they experience difficulties. I cannot remember the exact figure that he stated earlier when he talked about the cost to the State if the figure was 1%.