Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I welcome this opportunity to present the Bill to the House. I thank Members for agreeing to take all Stages today. This short, technical Bill will enable me, as the Minister for Business, Enterprise and Innovation, and the Minister for Agriculture, Food and the Marine to enter into agreements with the European Investment Fund, EIF, to facilitate access to finance for qualifying enterprises. The new future growth loan scheme was announced in the budget as part of the Government's response to Brexit, and enactment of this Bill will allow us to launch the scheme in early 2019.

The future growth loan scheme will be an important support for businesses throughout the country that are facing challenges arising from Brexit. It will be available to SMEs, including those in the primary agriculture and the seafood sectors. To bring this loan scheme to the Irish market in early 2019, it is imperative that we, as Ministers, be granted the necessary powers to enter into the agreement with the EIF this year, which includes providing the necessary Exchequer funding.

This scheme is an important component of the Government's Brexit mitigation measures for businesses, as it will provide businesses with the opportunity to borrow for periods between eight and ten years to support long-term capital investment. The tenure of borrowing currently available on the market for SMEs is typically anywhere from three to seven years. The future growth loan scheme has been developed to address a gap in the market for longer-term loans up to ten years.

The scheme will support enterprises that wish to invest and diversify their business by ensuring they have appropriate and affordable finance available to them. This, in turn, will fuel future economic growth in our important indigenous sectors by helping them to remain competitive. Given the particular exposure of the food sector to Brexit, the scheme, which will be 40% funded by the Minister for Agriculture, Food and the Marine, will also be available to primary producers. To unlock the EIF counter-guarantee, which will be used to leverage funding of up to €300 million the future growth loan scheme, both my Department and the Department of Agriculture, Food and the Marine will collectively contribute €62 million in Exchequer funding over a five-year period. The counter-guarantee with the EIF is a bespoke agreement, wider in scope than those available through the European Commission, offering 64% risk cover rather than the standard 40%. The scheme represents the first time that we, as Ministers, have entered into such an agreement, although there is potential for further such agreements, if needed. The Attorney General has advised that primary legislation is needed to provide the necessary powers to both Ministers to enter into such an agreement. The Department of Agriculture, Food and the Marine will contribute 40% of the loan fund on the basis that it is anticipated that at least 40% of the scheme will be used by food business and primary producers. The remaining 60% will be channelled through my Department's Vote in 2018 and subsequent years.

I refer to the heads of the Bill. Section 1 defines the "relevant Minister" as the Minister for Business, Enterprise and Innovation or the Minister for Agriculture, Food and the Marine, as we are the Ministers entering into the agreement with the EIF for the future growth loan scheme.

Section 2 provides the Ministers with the power to enter into agreements with the EIF, with the consent of the Ministers for Finance and Public Expenditure and Reform. This includes providing the necessary financial contribution from the Exchequer and limiting this to an aggregate total of €75 million should the Ministers wish to implement additional schemes concurrently. It also includes the discharge of any additional fees and expenses. Definitions of "qualifying enterprise", "SME" and "small mid-cap" are also referred to here.

Section 3 provides for a review of the operation of the Act after four years following the passing of the Act.

Section 4 provides that expenses incurred in the administration of the Act be paid out of moneys provided by the Oireachtas.

Section 5 provides for the Short Title and the commencement provision.

This short Bill is important as it will allow me, as Minister for Business, Enterprise and Innovation, and the Minister for Agriculture, Food and the Marine to enter into an agreement with the EIF to implement the future growth loan scheme, which is a critical component of the Government's response to Brexit. Essentially the scheme is a longer-term Brexit loan scheme. If we want to ensure our businesses throughout the country succeed and prosper in the face of fundamental challenges such as Brexit, it is essential that we take the necessary steps to ensure appropriate financial supports such as this scheme are in place for businesses. I look forward to hearing Senators' contributions.