FINE GAEL leader Enda Kenny has told the Dáil that the government is “messing” in not introducing the loan guarantee scheme for small businesses that it promised nine months ago.
The scheme – which would see the government guarantee loan applications made by small and medium-sized businesses, in an attempt to increase the supply of credit to such firms – was promised in January but has yet to be introduced.
Speaking at Leaders Questions in the Dáil this morning, Enda Kenny complained that the absence of the guarantee had left “thousands of small Irish businesses hanging on by their fingernails”.
The Tánaiste had committed to the scheme as long ago as January, but it had still not materialised.
“There are 80,000 small businesses in this country – they employ almost 800,000 people,” Kenny said. “You cannot solve every problem but this is one you can solve. You did commit to it.”
Taoiseach Brian Cowen responded that the guarantee was still being prepared, but that introducing it was a complicated process.
“We have already given credit plans from the banks to ensure on the basis of their successful recapitalisation that they’ll be in a position to have credit lines to business,” he said, insisting the scheme was something that required delicate consideration.
“There are many supports in place from Enterprise Ireland which are assisting small business. But the working capital needs of small business are best protected and best provided for once the full recapitalisation of the banking system is in place and that’s at an advanced stage.”
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