Mark Wall (Labour) | Oireachtas source

I wish my two colleagues on the opposite side of the House well on reopening. I also take the opportunity to wish all of our SMEs well on their reopening and to welcome the Minister of State to the House once again.

I welcome the opportunity to contribute to the debate. I am sure we all recognise the importance of providing finance as quickly as possible to all businesses that have been affected by Covid-19. This pandemic has had a devastating effect on every corner of this island. Every small village, rural town and city has been affected. It is vital that the Government responds quickly as we all know it is much easier to maintain jobs than to create them.

During debate on the Microenterprise Loan Fund (Amendment) Bill 2020, we discussed the importance of SMEs to our local communities. They played a vital role in supporting us in the past and are doing so again at this, our most vulnerable time. It is time that Government recognised this and supported this most important sector. It is beyond time that these businesses can access essential finance through their banks and other financial outlets. The impact of Covid on our SMEs cannot be underestimated. We all know that, as has been said on many occasions, SMEs are the backbone of our economy. They employed 1.3 million workers when the number in employment stood at 2.3 million.

The success of this Bill, which the Labour Party will support, will be judged on how well it makes finance available quickly and effortlessly to those who need it most. We must see a greater volume of lending than occurred at previous times. I mentioned during the debate on the other legislation the amount of assistance provided by LEOs throughout the country under the microenterprise loan scheme. I ask the Minister of State to ensure the financial institutions involved in the administration of this loan assist those who need it and do not put unnecessary obstacles in the way of those applying. As has been said by other speakers, the companies in need of this finance do not need red tape at this time.I ask the Minister of State again to ensure the Government guarantee, as part of this loan, is met with similar assistance and help during the application process from the main financial providers.

He mentioned in his address the much-talked about, but more important, much-needed July stimulus package. I continue to hear words such as "radical", "of scale" and "far-reaching". It is simply the case that the stimulus has to be as such. The Labour Party will judge the Government's July stimulus package and economic plan on the basis of five tests. We have suggested a stimulus package of €10 billion. Whatever is announced today, there can be no going back. This is a once-in-a-lifetime opportunity to create a modern Ireland where a living wage is the norm rather than an aspiration. It is an opportunity to target and address, once and for all, the weaknesses in Ireland's public infrastructure, including proper and resourced public transport, public housing and public care services including, most importantly, childcare.

I was pleased the Minister of State mentioned in the Dáil the other day, on proposing the Bill, the enormous problems we have in this country with youth unemployment. He indicated in the Seanad debate on the Microenterprise Loan Fund (Amendment) Bill that the July stimulus package would address what is simply a national disgrace. I use this opportunity to highlight once again that 45% of young people are unemployed, and of those employed, some 40% are in insecure work. We have one of the highest youth unemployment rates in Europe. We must address this through the stimulus. Every 25 year old not currently in employment must have a guaranteed access to decent work and training. We must recognise and develop a proper apprenticeship scheme, develop in-work training and provide access to remote learning for all those that need it. We all recognise that the youth are our future; it is time that this recognition was translated into a youth work guarantee.

In his contribution in the Dáil and again today, the Minister of State indicated that the Tánaiste has made it clear in recent meetings with the chief executives of the three main banks, namely, Allied Irish Banks, Bank of Ireland and Ulster Bank, that the Government expects a significant reduction in the interest rates charged to enterprises for the loans and other financial products covered by this scheme. In his reply, the Minister of State might elaborate on what he and the Department consider to be a significant reduction in the interest rates charged. Surely, at a time the cost of borrowing is at an all-time low, the pillar banks should show their commitment to this country by charging a rate of interest that will encourage applications and, more important, reflect the fact that we as a nation assisted them when they needed our help. The wheel has turned and now SMEs, which employ more than 60% of people working in this country, need our help. I will not hold my breath waiting for the banks to respond.

The Bill should put in place a State-backed guarantee for companies and SMEs with up to 499 employees to enable them to go to their banks and access much-needed finance. The business owners I speak to in Kildare are tired of applying for loans, taking on a further burden on themselves and, in many cases, their families. The Minister of State rightly indicated that SME owners are the backbone of our communities, employing so many in the workforce, and from whom we seek support for voluntary clubs and associations. In fairness, they have never been found wanting in supporting their communities. They are the ones who worry in these exceptional circumstances how they will continue to operate or even to keep their doors open. We will support the Bill to expedite the loans but we ask the Minister of State to consider further grant assistance rather than loans to this sector. Notwithstanding what the Minister of State has outlined, perhaps it is time for a State guarantee of 90% or even 100%, as is happening in other countries. We have all said that it is much easier to maintain jobs than to create new jobs. The template has been created by the owners and management of SMEs. It is the Government's job to ensure that template is maintained. Perhaps the Department could look at the models outside Ireland and work to take the burden of debt away at this time.

I welcome the commitment by the Minister of State to track the guarantee in other countries. We all appreciate that we are in unprecedented times. We have a record number of people in unemployment and in receipt of State assistance. It is the job of the Government to create the conditions for recovery, to ensure that citizens return to work and that young people have an outlet for employment rather than the local Intreo office.

The tourism sector is on its knees. The Government must ensure that the conditions for the loans are clear and painless for those who so badly need help. The interest charged by the banks must be minimal. I thank SMEs for their ongoing support of our communities in the past and assure them of all our support in the future.