Ollie Crowe (Fianna Fail) | Oireachtas source

I thank the Minister of State for his detailed briefing and for his constant support for all Senators in this House. The Brexit impact loan scheme is very welcome and much needed. Obviously, it is too early to see the full impact of both Brexit and the challenges that have arisen in recent months. However, the early trade figures from this year certainly provide some indication in that regard. My concern relates to the decline in exports of food and drink products, which is particularly worrying. A recent report by the Central Statistics Office, CSO, indicates that these exports fell by 35% from €641 million to €418 million in the first two months of 2021 compared with the same period in 2018. In that report, the CSO noted that while sales to seven of Ireland's ten largest food and drink markets actually increased during that period, the decline in export to Britain was greater, causing a decline in the total food and drink exports. This perhaps reflects how significant a trading partner the UK is for Ireland. I look forward to hearing the Minister of State's thoughts on this worrying aspect.

As Senator Ahearn alluded to, the agricultural sector and the stakeholders within it deserve huge credit for their efforts since 2016, when the Brexit vote occurred, to diversify and target new regions and markets. Again, we see this in the trade figures on beef exports. In 2016, the UK market accounted for 56% of Irish beef exports; by last year, the figure was down to 47%. Obviously, it will be substantially lower this year.That poses significant challenges to the sector. The Government has been proactive in assisting the agricultural sector, which as all Members will be aware, is particularly vulnerable to the huge impact of Brexit. The €100 million capital investment programme for the food processing sector, which was announced in December, was particularly welcome and will assist as the agricultural sector faces post-Brexit challenges identifying and adapting to the requirements of new markets.

The Brexit impact loan scheme will be an additional resource for the agricultural sector and others to draw on when responding to the challenges posed by Brexit. It is particularly welcome that SMEs and small and mid-sized capitalisation companies, including primary producers, will now be included and can utilise lending through the schemes for activities aimed at addressing climate change challenges and other opportunities.

Funding through the Brexit loan scheme can also be utilised for purposes which yield environmental benefit but are under normal lending conditions that are less attractive to lenders due to a longer return on investment periods. That is important and fills a much needed gap in that area.

The essential roll played by the Strategic Banking Corporation of Ireland was evident last year following the pandemic when €1 billion in bank loan guarantee schemes was provided to in excess of 8,000 businesses. The recent expansion of lending beyond retail banks is very welcome and relevant. I note that it involves 19 credit unions spread between three groups and non-bank lenders. This is especially necessary in light of a recent announcement made by KBC Bank Ireland and Ulster Bank.

As alluded to by the Minister of State, I believe we need the broadest possible range of participants in these schemes. I also believe the Government should support the development of credit unions as much as possible, which I have stated before in the House. I would be grateful if the Minister of State could provide his views on this and on whether there may be merit in implementing a quota for lending, which must be done in such schemes other than through major retail banks. I believe there is but I will await his comments

I wish all businesses well that open today across the country, especially retailers that have been under enormous pressure, particularly in Galway West and the west of the country. They have had an extremely difficult five months and more. I wish them well. People want to get back to work. They do not want to be getting supports from the Government even though the supports have been vital to keeping us alive. It is very welcome that businesses are back. One saying common to all in the Government is that there is no return and no going back.