Caít Keane (Fine Gael) | Oireachtas source

I welcome the Minister of State. This is probably one of our most important debates because small businesses are the lifeblood of the country. European SME week begins on 17 October, and we are discussing the SME sector with this in view. The theme of the conference on SMEs in Brussels will be "Women's Entrepreneurship". This is very appropriate given that there has been discourse nationally and internationally this year on women's representation on company boards. In this regard, we should consider the new EU legislation to which Ireland will be party. In the coming months, the European Commission is expected to publish a draft proposal aimed at addressing gender imbalance on company boards in EU countries.

A report this year from the international law firm Eversheds found that having women on a company board has a positive impact on the company's share price performance. This will be evident to one if one checks the results of the companies associated with the FTSE 100 or FTSE 300. This is outlined in the Lord Davies report and the Eversheds report this year.

Small businesses are and should be given priority, as is the case under the current Government. This is evident from the action plan announced earlier in the year. There are SMEs in every town and village and they form the majority of businesses across the State, be it in manufacturing or be they associated with foreign direct investment. Growth in the SME sector will lift the country out of its current difficulties.

I had intended to mention rates but they have been mentioned by other Senators. I will not dwell on the matter; suffice it to say that something must be done for new start-ups. I was at a meeting recently in Northern Ireland and noted what is done for start-ups in respect of rates. New businesses are not displaced because rates reliefs are offered to new businesses that are not on the street. This was raised when this matter was first mooted. In the North, there is a different regime pertaining to outstanding rates. We learn by working together. In the North, rates attach to the person and not the location. I ask the Minister of State to consider this and determine how the system works in the North. Perhaps we could do something along the same lines for small businesses here.

The main obstacle facing small businesses is access to credit, as stated by many Senators. The banks are now totally risk averse. They were too lenient during the period of the property bubble and now they have gone to the other extreme. One must question this given the amount of taxpayers' money put into them. Some 24%, or more, of all loan applications by new businesses have been rejected. Something ought to be done in this regard. As many Senators have mentioned this, I will not dwell on it.

Perhaps the Minister of State will comment on the performance of the temporary partial credit guarantee scheme in the third quarter. What is the rate of progress?

The microfinance loan fund was mentioned by many Senators. I will not dwell on this either. Is it working as intended? I acknowledge it is a new fund. Microfinance Ireland is working closely with the county and city enterprise boards, which have been amalgamated into the local authorities. Bearing in mind the link between the city and county enterprise boards and local authorities, is the Minister of State working with local authorities in other countries, such as Germany, with a view to assisting small Irish businesses with contacts in those countries? Local authorities in other countries have little micro-enterprise hubs on which we could model ours and with which we could forge links.

I welcome the new business plan guidance as it is good. Many businesses know what they want but are just not getting the funding they require. The potential export division in Enterprise Ireland should be borne in mind in light of what I have said on local authorities and links with those in other countries.

Banks actually hold onto a small business's money when a transaction is made. The client pays the money; it is left in the bank for three days and sometimes four, as has been reported to me, and then it is transferred out. Why is this happening? The Minister of State should ask the Financial Regulator whether there is a statutory period for the transfer of moneys from account A to account B? If the transaction is the other way around, the bank is not slow in taking money from one's account. It will take it and hold it. The Minister of State should inquire into what is happening. Many small businesses have brought this subject to my attention.

I must give credit where credit is due. The report published yesterday by the Credit Review Office has shown that 98 cases were reviewed and overturned. The banks should pull up their socks and ensure they take business seriously. I compliment the Credit Review Office because 60% of the cases that have been examined have been overturned. I hope this will make the banks pull up their socks.