Paddy Burke (Fine Gael) | Oireachtas source

I welcome the Minister of State. I also welcome the opportunity to say a few words on this important legislation. The lack of sufficient finance is the biggest obstacle to businesses. I have seen many businesses fail due to a lack of finance or not being able to secure finance. In some cases, businesses do not have enough finance. In others, they are not able to get it and they fail. Nobody has seen more that more than the Minister of State. He has seen at first hand since the crash of 2008 the many viable businesses that failed because they could not get finance. That is why this legislation is so important. If a person has a coffee cart but not enough funds to buy the coffee, the cartons it is served in or the milk people put in it, he or she cannot operate. Regardless of the level at which one is operating, one has to have sufficient finance. If one cannot get it. one will be at a big disadvantage. It is ironic that we are discussing those matters when many businesses are reopening having been closed for probably 12 months. I take this opportunity to wish every business that has reopened today and those that will open in the future the very best of luck. Small businesses are the lifeblood of this country. They suffered greatly during the past year and a half. They have never seen anything like this pandemic, its impact or the way their trade, be they family businesses or medium to large-sized businesses, has been devastated. The pandemic has had a major effect on them. I am sure everybody would like to wish them the very best of luck.

The Minister of State referred to primary agriculture. Was he saying that large dairy farmers or beef farmers can access this measure or must they have a specific project that is additional to the main enterprise the farm is carrying out, whether it be cheesemaking, liquid milk or some other enterprise? Will they need to have additional facility or can any farmer avail of this measure?

I welcome that credit unions and all the other institutions that provide finance will be involved in this initiative. When this started first, it was only the four main banks that were able to facilitate businesses. The involvement of credit unions is a major and welcome change. I am sure the credit unions and businesspeople will very much appreciate that. Quite a large number of businesses work solely with credit unions. It is their main source of finance and where they do all their banking . Great credit is due to the credit unions for the services they have provided to small businesses and business in general.

The Bill states there will be a cost to the Exchequer of €29 million. Where will that arise? Will it arise in the context of providing funding for the setting up the strategic banking initiative or will it come about in making provision for bad debt? The overall amount of funding being provided is €330 million. How will the cost to the Exchequer of €29 million arise? It may not arise at all but there is provision in the Bill for it. What is the position in that regard?

Basically, it is a technical Bill. I wish the Minister of State well with it. As already stated, this is important legislation. As we have all said, regardless of whether one has a large or a small business, finance is crucial. I fully support the Bill.