Leo Varadkar (Dublin West, Fine Gael)
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As the Deputy will know, many of the sectors referred to in the question relate to policy responsibilities of other Ministers but I am happy to outline my position on how best to assist enterprises in the current circumstances and into the future.

Firstly, I would remind the Deputy that much has already been done. Some of the supports already available include:

- the Temporary Wage Subsidy Scheme - under which the Government has invested almost €2 billion in supporting the maintenance of employment across the enterprise sector;

- the €250 million Restart Fund to help small businesses to reopen their doors and get back on their feet;

- a €2 billion Pandemic Stabilisation and Recovery Fund within the Ireland Strategic Investment Fund which is making capital available to medium and large enterprises;

- the 'warehousing' of tax liabilities for a period of twelve months after recommencement of trading during which time there will be no debt enforcement action taken by Revenue;

- relief on rates for three months for businesses that were closed;

- a €450m Working Capital scheme from the Strategic Banking Corporation of Ireland (SBCI); and

- an additional €200m Future Growth Loan Scheme (SBCI) to be released in tranches, providing longer-term loans to COVID-19 impacted businesses.

The full list of the business supports is available on my Department’s website.

My Department has developed a range of proposals which I have brought to the Cabinet Committee on Economic Recovery and Investment for consideration. These proposals, along with others from Ministerial colleagues, will be developed further for the Government’s consideration of an ambitious stimulus package which will be announced soon.

There are some welcome signs of improvement in business activity and the economy. However, sectors that employ a lot of people, such as tourism and hospitality, arts and entertainment and other services that rely on social interaction, remain in serious difficulty and their recovery prospects are highly uncertain. While we can’t keep every firm and job alive, our emphasis is to protect jobs insofar as we can.

It would be inappropriate to set out now the details of the proposals, but I can assure the Deputy that the Government will not be found wanting. Not only must we overcome the current challenges but we must also look ahead.

The July stimulus package to be announced shortly, will be radical, of scale and far-reaching. In considering the analyses, I see five areas in which we should focus on in helping our enterprises in the future.

1. Income supports for workers

2. Direct grants for businesses

3. Cheaper finance

4. New opportunities for future jobs

5. Support for the hardest hit sectors

The July Stimulus needs to help firms meet the fixed, non-wage costs incurred during lockdown and in re-opening.

James O'Connor (Cork East, Fianna Fail)
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31. To ask the Minister for Jobs, Enterprise and Innovation when the new €2 billion credit guarantee scheme will be operational; and if he will make a statement on the matter. [15806/20]

Leo Varadkar (Dublin West, Fine Gael)
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The new €2 billion COVID-19 Credit Guarantee Scheme announced by Government forms a major component of the Government’s strategy to aid SMEs in these difficult times. It will provide critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment.

It is a further development of the existing Credit Guarantee Scheme and will initially be available through the current finance providers Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland.

The Scheme will provide an 80% State guarantee on lending until the end of this year, for terms between 3 months and 6 years and will offer a range of lending products between €10,000 and €1 million including working capital and term loan facilities.

The key feature of the Scheme is that it will ensure the availability of liquidity to businesses by leveraging the strong relationship between banks and their customers all over the country.

There are a number of steps which need to be completed in relation to the Scheme, however, it is likely that the new Credit Guarantee Scheme will be available in September/October. It will commence second stage debate in the Dail next week.

The implementation of this Scheme requires amendments to the Credit Guarantee Act 2012 and following approval to publish the Credit Guarantee (Amendment) Bill 2020, the legislation will be considered by the Oireachtas in the coming week.

In addition to the legislative requirements, this ambitious COVID-19 CGS requires important engagement with the European Commission and the participating finance providers.

The new Scheme will take advantage of the relaxation of State Aid rules under the European Commission’s Temporary Framework which has provided the opportunity to widen the base of the current Credit Guarantee Scheme to now include primary producers. My officials are currently engaged with the European Commission in seeking approval and ensuring the Scheme's adherence to the rules set out in its Temporary Framework.

Officials from my Department and from the Department of Finance and Department of Agriculture, Food and the Marine along with the Strategic Banking Corporation of Ireland are engaging with finance providers in relation to the specific terms and conditions of the Scheme.

This engagement provides the opportunity to develop the Scheme with provisions that help its effective and efficient roll-out. As the State is providing a significant support to banks to provide credit facilities to companies, it is expected that the banks will apply interest rates below current market rates. It should also be noted that as required by the Temporary Framework, a premium will be charged in recognition of the State backed guarantee.

I expect the participating finance providers to implement this Scheme in an efficient and effective manner to ensure that this badly needed finance is quickly made available to businesses.