Ollie Crowe (Fianna Fail) | Oireachtas source

I will share time with Senator Casey. I thank the Minister of State, Deputy English, for coming to the House and providing a detailed overview of the Credit Guarantee (Amendment) Bill 2020. This legislation is vital to the overall economic response to Covid-19. I have been speaking to business owners in Galway city and county and across the west since the crisis began. Now that businesses are reopening every week, we need to show them support and be flexible in our lending, as the Minister of State outlined. In challenging economic times, credit, be it cash flow or whatever the case may be, can dry up fairly quickly so it is imperative that we support business.

As the Minister of State noted, the scheme will be available to SMEs, primary producers and businesses with up to 499 employees. Thankfully, SMEs are expected to be the main beneficiaries of this scheme. The inclusion of primary producers is very welcome. The agrifood sector is a vital part of Ireland's economy and society and is especially important in rural and coastal areas. Farmers, fisheries and food companies played a major role during the pandemic in ensuring a supply of quality food and beverages despite very challenging times.We are living in extraordinary times and we need to take extraordinary actions. The length of these loan terms, which is up to six years, will provide businesses with the flexibility they require. I also welcome the structure of the guarantee, with the State guaranteeing 80% of the loan. It is the right balance because at the end of the day, the taxpayer must be protected as well. We do not need to give 100% guarantees to banks and if we did, there would be a very real risk to lending thereafter. It is vital that the scheme is up and running as soon as possible. I know the Minister of State will take that into account. Of course, we need to ensure the scheme is thorough and that applications are well vetted, but we do not need too much red tape and we must operate in a straightforward fashion that is easily understandable for both SMEs and banks. The applications should be made in a speedy manner and the banks should reach their decisions quickly.

I again thank the Minister of State for his participation in this debate. He already outlined this in his speech but I ask him to give further consideration to expanding the grants available, because many SMEs and businesses across Ireland are struggling with the level of loans they have. I ask him to prioritise the grants, although I heard him say he is doing that. A number of supports have been put in place, including the restart grants and the July stimulus package which we will hear more about today. That will further enhance the supports. There is no question that the wage subsidy scheme has been excellent but having spoken to businesses in the hospitality sector, their main point is that there needs to be an increase in the level of grants. It is something they feel would be a significant boost in the long term and for the sustainability of their businesses.