Seán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy English, to the Chamber and congratulate him on his reappointment as Minister of State in this new Department.

I welcome the opportunity to speak on the Microenterprise Loan Fund (Amendment) Bill 2020. It is clear that Microfinance Ireland has been a success story since its establishment and has been supporting microenterprises across the country to access credit where they have been refused by financial institutions. Microenterprises are evident everywhere across our communities. They provide employment, goods and services. With not more than ten workers, microenterprises are the local businesses in our towns, villages and cities. When microenterprises fail, there are knock-on consequences for both the wider economy and for communities and it is in all our interests to ensure that such businesses are supported.

Covid-19 has had a huge impact on all businesses and continues to have an unprecedented impact on our country, in particular on businesses and jobs . I think we have all spoken to business owners - I certainly have, in Galway and elsewhere - and they have told us of the catastrophic impact of Covid-19 on their businesses. Few sectors have been untouched and some of them have been devastated by the pandemic and the necessary public health restrictions. Tourism, hospitality, transports, arts, culture and others are sectors in which organisations are fighting for their survival. I will highlight the impact in my own city and county on some of the staples on the calendar including the Galway Races and other racing festivals across the country, which are closed to spectators; the Galway International Arts Festival; the Galway Film Fleadh, which is moving online; the Connemara Pony Show and all pony shows; and Galway 2020, which is postponed to later in the year and 2021. The impact of these annual festivals up and down our country is huge. The impact that Covid continues to have on microenterprises is huge.

The previous Minister, Deputy Humphreys, and her team in the Department designed supports for businesses and they were ably assisted by organisations such as Údarás na Gaeltachta, local authorities including the LEOs and others to help businesses protect jobs day in, day out. Supports are varied from the temporary wage subsidy scheme, the pandemic unemployment payment, the short-time work support, the credit guarantee scheme, the working capital scheme, the sustaining enterprise fund, the online retail scheme and the restart grant. There are dozens of programmes and schemes that are helping businesses and protecting jobs around the country. Some of these schemes are not perfect but they are essential if we are to weather this Covid-19 crisis. The legislation before us today will help continue one of those supports provided by Microfinance Ireland. The figures show that Microfinance Ireland has supported small businesses from a range of sectors. The average loan size has been €14,000. Businesses employing three people or fewer account for 83% of approvals. Over half of all approvals have been to start-ups. Given the intense pressure on businesses, the fact that Microfinance Ireland has, since March, been providing loans interest free for the first six months is immensely welcome. Such a measure is simple to apply but crucial to the viability of a business. It demonstrates the flexibility and readiness of Microfinance Ireland to help and highlights that Microfinance Ireland is deserving of the positive changes this Bill will bring.

One area of concern, as others have said, is the rate of loan approval. At 44%, the approval rate seems to be on the low side.What we need now is flexibility in all areas of support across the business community. One example is the trading online voucher scheme, which is a highly successful scheme that has been helping small businesses to get online for the last number of years. I appeal however, for the Minister of State to work with colleagues in the proposed new Department of Climate Action, Communications Networks and Transport to widen, even if only for a short period of time, the eligibility for the trading online voucher scheme. We all know that businesses without an online presence will continue to struggle, as we have seen. The Bill before us increases flexibility in unlocking finance for small businesses which may very well be the difference between success and failure.

Ar deireadh thiar, baineann an Bille seo le cúnamh a thabhairt do ghnóthaí beaga agus áitiúla, atá rithábhachtach dár bpobal. Baineann an Bille le cumhacht a thabhairt do Microfinance Ireland cabhrú le níos mó comhlachtaí agus pobail ar fud na tíre chun cinntiú go mbeidh an tionchar is mó ag gach euro de mhaoiniú Stáit chun cuidiú do ghnóthaí maireachtáil, fás agus, tá súil agam, le ham, poist nua a chruthú.