Kathryn Reilly (Sinn Fein)

Like previous Members, I welcome the Minister of State. Sinn Féin broadly welcomes the Bill and its goals and will support it. The banks, even those owned by the people, unfortunately, are not lending as they should and are not being compelled to do so. As stated, microenterprises and SMEs account for the majority of employment in the State but are the least likely to get the loans necessary to continue to expand and get through the difficult period or to get a start. This is at a time when the Government can find up to €1 billion to pump into the ESM which in all likelihood will be used to prop up failed banks, but it can only struggle to cough up €10 million for the microenterprise sector. This is the context in which the Bill is coming to us and that must be acknowledged in the debate.

There are some flaws in the legislation that have to be addressed if the microenterprises are to benefit from the legislation and the fund in the way they should. The programme for Government provided that the Government would construct a €100 million microfinance start-up fund that would provide start-up loans and equity and would draw its funding from the National Pensions Reserve Fund and private institutional funds. Despite this, more than a year later we are presented with a Bill that puts only €10 million on the table. That is major betrayal of microenterprises by the Government. I will table amendments to provide for an increase in the amount of the fund, but whether they are accepted or ruled out of order is another issue.

A matter of great importance is the governance of the fund and the issue of democratic control and effective administration of the fund. Another injustice inherent in these economic times is encapsulated in the fact that these same banks which are refusing to lend to the real economy can access finance from the ECB at a rate of only 1%, yet microenterprises are expected to pay full market prices. The Oireachtas should be empowered to ratify each scheme rather than for us simply to give a carte blanche to the fund and for it never to be democratically scrutinised again. How related to this is the role of the Social Finance Foundation in the running of the fund? The legislation as framed effectively makes the Social Finance Foundation a direct deliverer of credit rather than its current role as a wholesaler of credit. What qualifies the Social Finance Foundation to take on this role? I will consider tabling amendments to clarify the division of duties in this regard and put in place a more efficient, speedy and accessible system in order that the Bill will be worthwhile.

The entire process, from the beginning to completion, of applying for funding should be straightforward and as simple as possible. Enterprise Ireland should have a clear role as a single point of contact providing feedback to the applicant and agreeing a development map and appropriate supports.

Sinn Féin will support the Bill as a step forward. While it should have been better, I hope the Government will approach my amendments with an open mind. The Bill attempts to plug a hole in the market caused by the unwillingness of banks to do their job and the Government to make them do it. It must be got right and it must have financial muscle behind it. I hope the Minister will take on board our amendments on Committee Stage. I look forward to debating them.