John Perry (Sligo-North Leitrim, Fine Gael)

They are now back in domestic banking and all have been substantially recapitalised by the State. The Minister for Finance, Deputy Noonan, is watching this very closely.

The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, is dealing with the micro-finance fund in the Dáil, which will be a unique opportunity for companies. It will be rolled out by the local enterprise offices. It has been a difficulty in the past that somebody with a brilliant idea has not been able to get funding of up to €25,000. I was at a launch with the Minister, Deputy Bruton, last week where somebody started an enterprise with a small amount of money and they now have ten staff. The first step was through the very effective Norma Smurfit Foundation which provides first step funding. That can be replicated throughout the country. The backbone of this economy is the 200,000 companies employing 700,000 people and the State has a huge understanding of and concern and respect for that. We very much welcome foreign direct investment, which is at a fantastic level. Exports from Ireland are at an unprecedented level and indigenous Irish companies are doing very well. The real challenge is the domestic economy.

With regard to the 2% charge, Senator Cullinane must realise that this does not cover all of the costs. That is an important point. There is a net cost to the State of approximately €6.34 million, even with the 2% charge. The take-up of the scheme will be closely monitored and if the demand is higher than the €150 million, we will have no difficulty with that. If this fund is creating jobs, the Government will consider increasing the amount to meet the demand. The large oak grows from the small acorn. This is about starting the scheme and about talking to business people. It is not the case that it will dish out money. The biggest mistake in some cases can be when people get money. It is not always the touchline of success in a business. What is important is the management capabilities, the product range, knowing the marketplace and opening a business that will be viable. People might be in enough trouble and being refused money might be the best decision ever. It is not just a case of giving money as a panacea, as if it is a button to be pushed that will make the business successful. It is one part of dealing with a problem. The initiative by the Government on the partial loan is not the big solution, it is just part of the solution. The micro-finance fund, which is being discussed in the Dáil at present, will also help.

I rest my case.