Alice-Mary Higgins (Independent) | Oireachtas source

Yes, it is 5%. My concern is around the SME focus. I understand from engaging around this issue, that it relates to agri-businesses on the Border and so on, but I am concerned still about where the loans will go. It relates to the point I made earlier about whether our SMEs are getting the loans. In other words, will small businesses get access to these loans? I am also concerned that the mid-caps which can access this funding are companies which are based in Ireland or have a branch in Ireland. My concern - this relates to an area where we have not seen risk analysis - is in regard to the creation of reasonable expectations. The Minister of State will be aware that in parallel with this debate is the constant conversation about the introduction, potentially, of investor protection mechanisms under which companies may seek compensation in regard to changes in policies, one of the grounds for which is that they have been invited, offered an inducement, given a support or been encouraged to engage in an area of investment. I sought to have the following addressed, but I do not think it has been included. How do we ensure that those for whom we are underwriting loans are clear that that should not be considered as constituting a reasonable expectation if, for example, the policy in the area of agri-business or industry in which they are involved changes over the next two, three, five or ten years? That is my concern and it is part of the general piece which is the lack of risk analysis in regard to the schemes. I want us to have stimulus schemes and for us to be able to support businesses. I agree with, and called for, a stimulus support in 2008 when we went for the austerity model of engagement. We need stimulus, but the risk that we create if we bring in potential investor protection mechanisms, which could allow for suits in regard to compensation where an expectation was created or seen to be created by the State having offered support, is an unnecessary risk.

Again, one of the problems with the investor protection mechanism and the investor court system, ICS, that is potentially being brought in under the Comprehensive and Economic Trade Agreement, CETA, is that they make something good - our support to business - a potential liability for the future. That is not something that I want to see happen.With colleagues on the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach, I have had correspondence with the Department. As far as we can see, it does not appear that a risk analysis has been done. We have been told that what might happen in future cases is hypothetical, but everything is hypothetical. I was on the boards of small companies before joining the Seanad and we undertook risk analyses. A risk analysis is needed in this context.

I will not oppose the Bill. I would like it to be more clearly targeted. I am concerned that the Minister of State spoke about me adding more criteria. As I understand the matter,-----