Paul Gavan (Sinn Fein) | Oireachtas source

It is good to see the Minister of State, Deputy English. It would have been better to see him if Westmeath had held on to that lead yesterday, but it is early in the season, so let us hope we will get another opportunity later on.

The need for a loan guarantee scheme for small and medium enterprises affected by Brexit and Covid-19 is apparent to all. This is particularly true of SMEs and this is why such businesses have been prioritised by this Bill and the schemes that will flow from it.

Sinn Féin supports this Bill and the moneys it will help be loaned out but, as is ever the case, difficulties for businesses in accessing this money comes from what happens between the passing of the Bill and the loaning of the moneys. The design of the scheme, the length of repayments, and the interest charged all contribute to the success of such a loan scheme. We have seen throughout the Covid-19 crisis that some loan schemes are more attractive than others, and it beggars belief that where the State has backed loan schemes that are not popular, the moneys behind those schemes are not moved laterally to better performing loan schemes so they can be of use. Either that or engage with business to figure out what the issues are and rectify those schemes that have a low take-up. This scheme has a built-in review mechanism, but I would hope a preliminary assessment could be carried out into the performance of the scheme within six months to a year rather than the four years mentioned.

It is now, when Covid and Brexit are hitting hardest, that SMEs and family businesses need access to credit. We know the twin crises of Covid and Brexit have caused untold difficulty for businesses, but there is some light at the end of the tunnel. There are opportunities for SMEs to expand in domestic operations and in trading internationally, especially with the European Union. The exit of Britain from the EU and from the Single Market leaves trading opportunities with our European partners. I have no doubt there is scope for indigenous SMEs to expand and secure some of these trading opportunities. The role for the Government and the Oireachtas is to help facilitate that. This is why these schemes are so important and why it is so important they work effectively and efficiently.

On the future economy, the reality is the State is a critical player in our economy, in our economic development, and in the economic direction. It is up to the Government to play its part in working with business, with workers and the trade union movement, and with others to help deliver a more robust, progressive economy: a high-wage, high-productivity and high-growth economy that delivers for everyone. That is the best way to deliver for business and deliver for workers, especially as we exit the Covid crisis.

After the financial crisis and austerity years, the economy was just pieced back together the way it was. That has not worked for ordinary people, for workers or for indigenous SMEs. After this pandemic we need to build back better and use the finances within the State to the benefit all of our people the most. I will highlight in particular the €12 billion the State uses on public procurement every year. We could ensure companies provide a living wage and build a workplace democracy. We could use an innovative policy such as community wealth building to line up our anchor institutions, for example, in Limerick with the University of Limerick, the hospital and the council, to ensure procurement is done in such a way that we have a low carbon footprint, that we see benefits for the workers employed in those businesses that win contracts, and that we see more benefits going to local small businesses than to large multinationals. It is an opportunity to build back better. I hope the Government would realise that and act on it. The moneys the State uses every day of every year must be used to create better working conditions, better pay and regional development across this State.

On regional development, I believe most people would concede our growth has been very much skewed towards the east coast and Dublin over the past ten years. This policy does not really work for Dublin given the horrors we all see in traffic, outrageous rents and so on. Such development feeds Dublin beyond its actual capacity and it starves the regions beyond being sustainable. We need balanced regional development, better local economies, community jobs and growth. We cannot do this without a change of mindset. This relates back to the issue of community wealth building.

We welcome the proposed loan scheme. We would like to keep an eye on it. I ask the Minister of State to consider perhaps giving the scheme an earlier review, if possible. Now is an opportunity to create a better society out of the back of this pandemic where our towns and villages can grow, and where people can live with opportunities around them in their own communities.

I apologise to the Minister of State. I have another meeting I must attend in a few minutes. If I am not here in the Chamber when he responds I will take a note later in the day.