Barry Ward (Fine Gael) | Oireachtas source

Cuirim fáilte roimh an Aire Stáit agus tá súil agam go n-éireoidh leis. Tá a fhios agam go bhfuil an-suim aige sa ghnó, fiontar agus gnó áitiúil. Tá súil againn go n-éireoidh leis ina phost nua agus táim ag tnúth go mór leis an obair a dhéanfaidh sé ansin.

The Minister of State told us about how important SMEs are, and there is no doubt about that. They are one of only a handful of serious pillars that hold up the economy of Ireland and it is important to recognise how much they mean to the success of the economy and, in particular, the recovery. I am also conscious that it is easy to forget SMEs because we hear so much about large job or industry announcements which is understandable because they bring with them growth and opportunity.

When we look at what SMEs bring to the economy, we must also have regard for how much they do for local economies. Small enterprises are much more likely to be owned by local people, employ local people and use local services, and keep their profits to spend locally rather than repatriating them to other countries. The benefits go beyond the figures we have heard in terms of their financial contribution to the economy. We must home in on how much they do for communities and small towns and villages throughout the country.

Reference was made to how much of the money provided by Microfinance Ireland has gone to small businesses outside Dublin.Four in five loans are given to enterprises outside the capital. That is welcome because it makes small towns and villages sustainable in a way that they would not otherwise be without such financing.

I wish to raise a number of issues with the Minister of State. Dún Laoghaire has by accident or organically become a hub for ecommerce and tech industries, and there are a number small enterprises in Dún Laoghaire. A couple of years ago we had a plan to populate the old ferry terminal with the harbour innovation campus that we hoped would attract a huge number of new start-ups in the sector. Unfortunately, that did not happen but the terminal still exists. The chief executive of Dún Laoghaire-Rathdown County Council is working very hard to put in place something to replace the hub idea and build on the expertise that exists in Dún Laoghaire. I ask the Minister of State to focus on these clusters that exist throughout the country, including the one that I have mentioned, so that we can support the growth of the industry and its SME sector.

Today's Bill is very important but the way it has been drafted understates its importance and opportunities. For example, the use of the word "subsidiary" throughout the Bill instead of "Microfinance Ireland" makes it very difficult for ordinary citizens reading the Bill to assess the opportunity and potential of the legislation.

In terms of the impact of the legislation, reference has been made to the terms on which these loans will be granted. Is the Minister of State in a position to advise this House as to what the terms are likely to be? I presume it will be done through regulation by his Department. Has consideration been given to some of the suggestions made to improve the terms?

Reference has been made to the banks. The commercial and retail banks in Ireland give a very poor service to the SME sector. As has been said before, retail banks are the kind that gives a person an umbrella on a sunny day but wants it back when there is rain. I am afraid, from what has been said to me, that that has been very much the tone when banks deal with SMEs and getting finance in a post-Covid environment has proved incredibly difficult. We need organisations like Microfinance Ireland to step in and fix the problem.

The Industrial Development (Amendment) Act 2019 was passed just before Christmas and it provided for the Minister to activate the loans, which was not done until the end of April. When will the money become available? Can the Minister of State address the issue? Given the provisions in section 9 of the Bill before the House, can he say when it is likely that the regulations to enact the relevant sections, particularly section 3, will take effect?