Pádraig Mac Lochlainn (Sinn Fein) | Oireachtas source

Much of what is in this Bill has been presented to the Dáil and to us in the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019. At that time, my colleagues engaged with the Minister about the poor uptake of the range of supports relating to Brexit. I will read into the record what was said. My colleague, Deputy Quinlivan, stated:

Just 81 loans with a value of €17.3 million have been given out under the €300 million Brexit loan scheme, a tiny 6% of the total pot. Only 241 market discovery grants have been approved while just 156 Be Prepared grants have been sanctioned.

My colleague tabled amendments asking for a review of what went wrong. I represent a Border county. Businesses said that many in Border areas were struggling. The supports are obviously available to businesses across the State, not just in Border areas, but businesses in Border areas said that confidence had taken a hit over recent years, that investment opportunities were not what they could be, and taking an additional loan was not something that they wanted to do. That was the anecdotal feedback I received from businesses and groups representing businesses. The Minister said in response that she could not support the amendment because reviews were ongoing and she was engaging with various business representative groups. What has been the outcome of the Department's review of the low uptake? I know the additional capital funding for the IDA, Enterprise Ireland and Science Foundation Ireland was going to be provided anyway. I see that in the digest from the Library and Research Service. It is not Brexit related. Other measures would be Brexit related. The Minister is right on the Border herself so I do not need to lecture her about anything related to Border businesses. There is low uptake and we need to understand why.

When I talk to businesses and communities in Donegal, they tell me that they struggle to get by from day to day, trying to keep the business going. It is difficult enough to deal with what is a reality without dealing with what might be a reality.It is enough dealing with what is a reality rather than what might be a reality. There is a view that Brexit will be sorted out and will not happen. Is it being said that we will cross the bridge when it appears before us? I acknowledge that InterTradeIreland and other organisations have been resourced but I wonder what feedback the Minister has got in her Department in this regard. When this was debated in the Dáil, Sinn Féin called for a Brexit stabilisation fund. Such a fund has been in place in Britain. We were saying the rainy day fund must be postponed because the rainy day is right now owing to Brexit. I welcome the fact that in the budget, the Government set aside, on a precautionary basis, approximately €1.2 to €1.3 billion, much of which will be to support the various sectors of the economy and businesses that could be affected.

I have a wider concern. As we know from the financial crisis, it is dangerous when measures are taken that encourage cycles. If we are entering a cycle of economic difficulty or have a budget that encourages that cycle, that is, a procyclical budget rather than a countercyclical one, such measures are a mistake.

There were interventions in the recent budget. While I welcome the fact that the Government has come around to the idea of what is pretty much a Brexit stabilisation fund, I wonder about the position on more investment in the economy, public services and housing and more capital investment. The capital budget for the Department of Education and Skills has decreased for the first time in quite a while under this budget. Is that a mistake? Are we saying we have a precautionary budget to support businesses, through what is pretty much a stabilisation fund, while having what is almost an austerity budget? It is not a cutback budget but a status quobudget. I wonder whether that is the wrong strategic decision at this time.

The Bill is supported and contains welcome measures. A lot more needs to be done. I would like to know, in particular, the outcome of the Minister's review on the poor take-up of many of the loan funds. What does the Government aim to do with the fund for Brexit supports? We support the Bill. We would look for more.