Written Answers Nos. 41-60
41. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number and value of loans approved and issued to applicants through the Covid-19 credit guarantee scheme since 23 March 2020. [14635/20]
View answerThe new €2 billion COVID-19 Credit Guarantee Scheme which was announced on 2 May 2020, forms a major component of the Government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment.
It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years. The guarantee can be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less. The new Scheme is expected to include overdrafts and short-term re-financing facilities, the terms of which are currently under discussion with the financial providers.
The implementation of this Scheme requires primary legislation, the drafting of which has been approved by Government and work on drafting is ongoing.
My officials are also currently engaged with the European Commission in seeking approval for the Covid-19 Credit Guarantee Scheme and ensuring the Scheme's adherence to the rules set out in their Temporary Framework.
42. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number and value of loans approved and issued to applicants through the credit guarantee scheme since 23 March 2020. [14636/20]
View answerThe Credit Guarantee Scheme was implemented under the Credit Guarantee Act 2012, which came into effect on 30th August 2012, with secondary legislation setting out the operational detail of the Scheme. The Credit Guarantee Scheme is available to Covid-19 impacted businesses, it supports loans up to €1 million for periods of up to 7 years. The Scheme offers a partial Government guarantee of 80% to banks against losses on qualifying loans to eligible SMEs. The scheme is designed to support a range of debt products appropriate to the borrowing needs of SMEs. Term loans and other products such as stocking facilities, performance bonds are covered by the Scheme.
An application to access the Credit Guarantee Scheme can be made through one of the participating finance providers which are currently Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland. The Scheme is operated by SBCI. The Department plays no role in the application or decision-making process, which, is fully delegated to the participating lenders. The current Credit Guarantee Scheme facilitates guarantees up to a maximum of €150 million in any one year.
Since the 23 March 2020 there have been 5 loan applications approved and drawn down, with a combined value of €1,606,000.00
Information on the uptake of Covid-19 schemes is available from the Take-up of Covid-19 Supports page of my Department’s website.
43. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number and value of loans approved and issued to applicants through the Covid-19 working capital loan scheme since 23 March 2020. [14637/20]
View answerThe Covid-19 Working Capital Scheme is offered in cooperation with the Department of Agriculture, Food and the Marine, and is supported by the InnovFin SME Guarantee facility. The scheme is operated by the SBCI through participating finance providers.
It currently makes available a fund of up to €200 million to eligible businesses that have been negatively affected by impacts arising from the outbreak of Covid-19 to enable those businesses to innovate, change or adapt in response to the current business environment. Work is under way on a significant expansion to the scheme which will be brought to the market in the coming weeks.
The scheme is open to eligible SMEs and small mid-caps (businesses of up to 499 employees) negatively impacted by Covid-19. Loans under the scheme range from €25,000 to €1.5m and are for periods of up to three years. The maximum interest rate under the scheme is 4% and loans of up to €500,000 are available unsecured.
Since the 23 March 2020 and as of 6 July 2020 there have been 632 loans sanctioned under the Covid-19 Working Capital Scheme to a total value of €76.56m.
Information on the uptake of Covid-19 schemes is available from the Take-up of Covid-19 Supports page of my Department’s website, which is updated weekly.
44. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number and value of loans approved and issued to applicants through the Covid-19 business loan scheme operated through Microfinance Ireland since 23 March 2020. [14638/20]
View answerThe Covid-19 Loan, available from Microfinance Ireland (MFI), was introduced as a support to microenterprises to help them access funding arising from the Covid-19 crisis.
These loans are available for eligible microenterprises responding to Covid-19-related difficulties, the negative impact of which must be a minimum of 15% of actual or projected income or profit. Loans up to €50,000 are available with terms that include a six months interest free and repayment free moratorium, with the loan to then be repaid over the remaining 30 months of the 36-month loan period.
MFI provides vital support to microenterprises by filling the lending gap in the market by lending to business that cannot obtain loans from other commercial lenders. It lends to business that do not meet the conventional risk criteria applied by commercial lenders and applies interest rate charges for its lending which are not reflective of its credit risk.
Standard loans from Microfinance Ireland have interest rates of between 6.8% and 7.8%. Given the cost burden to businesses even with these subsidised rates of interest a substantial reduction was applied on the interest rate to 4.5% on the Covid-19 loans provided by MFI. This reduced rate is available to all micro-enterprises where the application is made through the Local Enterprise Network or referred by a bank or Local Development Committees. The new rate for direct applications to MFI is reduced to 5.5%.
As these loans are available interest free for the first six months, the net effect is to further reduce the net interest rate payable over the period of the loan.
The types of businesses normally supported, if they could obtain unsecured bank funding, would normally attract a significantly higher rate of interest due to the unsecured nature of this lending and the inherent risk. Microfinance Ireland is a not-for-profit lender and is loss making due to the nature of the risk it is mandated to take.
As of the 3 July 2020, out of 989 applications under the Covid-19 loan, 581 applications had been approved to the value of €15.65m. €12.38m of this has been drawn down as of the same date by micro businesses.
To note, a full list of supports that are available to assist businesses address the challenges posed by the COVID -19 crisis, together with details of uptake of such supports, is available on
https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/
This list is updated every week in consultation with Business Units with the updated table published on the Department’s website by lunchtime on Mondays.
45. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of applications for loans under the Covid-19 credit guarantee scheme that have been rejected by lenders since 23 March 2020. [14639/20]
View answerThe new €2 billion COVID-19 Credit Guarantee Scheme forms a major component of the Government’s strategy to aid SMEs in these difficult times by providing critical support to ensure businesses are facilitated in having access to credit facilities to assist a return to a more regular trading environment.
It will provide an 80% guarantee on lending to SMEs until the end of this year, for terms between 3 months and 6 years. The guarantee can be used for a wide range of lending products between €10,000 and €1 million that have a maximum term of 6 years or less. The new Scheme is expected to include overdrafts and short-term re-financing facilities, the terms of which are currently under discussion with the financial providers.
The implementation of this Scheme requires primary legislation, the drafting of which has been approved by Government and work on drafting is ongoing.
My officials are also currently engaged with the European Commission in seeking approval for the Covid-19 Credit Guarantee Scheme and ensuring the Scheme's adherence to the rules set out in their Temporary Framework.
46. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of applications for loans under the credit guarantee scheme that have been rejected by lenders since 23 March 2020. [14640/20]
View answerThe Credit Guarantee Scheme was implemented under the Credit Guarantee Act 2012, which came into effect on 30th August 2012, with secondary legislation setting out the operational detail of the Scheme. The Credit Guarantee Scheme is available to Covid-19 impacted businesses. It supports loans up to €1 million for periods of up to 7 years. The Scheme offers a partial Government guarantee of 80% to banks against losses on qualifying loans to eligible SMEs. The scheme is designed to support a range of debt products appropriate to the borrowing needs of SMEs. Term loans and other products such as stocking facilities, performance bonds are covered by the Scheme.
An application to access the Credit Guarantee Scheme can be made through one of the participating finance providers which are currently Allied Irish Banks, Bank of Ireland and Ulster Bank Ireland. The Scheme is operated by SBCI. The Department plays no role in the application or decision-making process, which, is fully delegated to the participating finance providers. As such the refusal of applications is a confidential matter between the customer and the finance provider.
Information on the uptake of Covid-19 schemes is available from the Take-up of Covid-19 Supports page of my Department’s website.
47. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of applications for loans under the Covid-19 working capital loan scheme that have been rejected by lenders since 23 March 2020. [14641/20]
View answerThe Covid-19 Working Capital Scheme makes available a fund of up to €200 million to eligible businesses that have been negatively affected by impacts arising from the outbreak of Covid-19 to enable those businesses to innovate, change or adapt in response to the current business environment. Work is under way on a significant expansion to the scheme and this will be brought to the market in the coming weeks.
This Covid-19 Working Capital Scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) through participating finance providers. It features a two-stage application process, whereby businesses must first apply for eligibility confirmation with the SBCI. Successful applicants are issued an eligibility reference number which they can use to apply with participating finance providers. This code remains valid for six months, and businesses may apply to secure eligibility for an application at a later date.
The scheme is open to eligible SMEs and small mid-caps (businesses of up to 499 employees) negatively impacted by Covid-19. As of the most recent report (3 July), there had been 3,288 applications for eligibility under the scheme made to the SBCI. Of those, only 15 applicants (less than 0.5%) have so far been determined to be ineligible.
Loans under the scheme are subject to the participating banks’ own credit policies and procedures. Information on the decline rate of loan applications under the scheme remains with the banks and is not reported on in relation to individual schemes.
If an applicant feels that their loan application has been declined unreasonably, they can appeal this decision through the Credit Review Office. Applicants may also use the same eligibility reference number to apply with another participating bank.
SME credit decline rates are collated through the Department of Finance Credit Demand Survey and the Central Bank of Ireland SME Market Report. For its Credit Demand Survey, the Department of Finance conducts a biannual survey of 1,500 SMEs in relation to the demand for bank credit and related issues. The results from the most recent survey in respect of the period April 2019 to September 2019, shows that excluding pending applications, the overall decline rate stands at 14% (the same level compared to September 2018). According to the Central Bank of Ireland's most recent SME Market Report (2019), "rejection rates on loan/overdraft applications in Ireland have declined and converged to euro area averages."
The decline rates for SME loans will continued to be monitored through these surveys and comparison will be made to SME loan decline rates in the euro area. The data from these surveys is a significant source of information on which insights can be drawn in relation to access to finance for SMEs in Ireland.
48. Deputy Pearse Doherty asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of applications for loans under the Covid-19 business loan scheme operated by Microfinance Ireland that have been rejected by lenders since 23 March 2020. [14642/20]
View answerThe Covid-19 Loan, available from Microfinance Ireland (MFI), was introduced as a support to microenterprises to help them access funding arising from the Covid-19 crisis.
These loans are available for eligible microenterprises responding to Covid-19-related difficulties, the negative impact of which must be a minimum of 15% of actual or projected income or profit. Loans up to €50,000 are available with terms that include a six months interest free and repayment free moratorium, with the loan to then be repaid over the remaining 30 months of the 36-month loan period.
MFI provides vital support to microenterprises by filling the lending gap in the market by lending to business that cannot obtain loans from other commercial lenders. It lends to business that do not meet the conventional risk criteria applied by commercial lenders and applies interest rate charges for its lending which are not reflective of its credit risk.
Standard loans from Microfinance Ireland have interest rates of between 6.8% and 7.8%. Given the cost burden to businesses even with these subsidised rates of interest a substantial reduction has been made in the interest rate to 4.5% on the Covid-19 loans provided by MFI. This reduced rate is available to all micro-enterprises where the application is made through the Local Enterprise Network or referred by a bank or Local Development Committees. The new rate for direct applications to MFI is reduced to 5.5%.
As these loans are available interest free for the first six months, the net effect is to further reduce the net interest rate payable over the period of the loan.
The types of businesses normally supported, if they could obtain unsecured bank funding, would normally attract a significantly higher rate of interest due to the unsecured nature of this lending and the inherent risk. Microfinance Ireland is a not-for-profit lender and is loss making due to the nature of the risk it is mandated to take.
As of the 30th June 2020, out of 963 applications under the Covid-19 loan, 72 were ineligible/withdrawn and 147 applications have been declined. 581 applications had been approved and 163 were in progress.
49. Deputy Richard Boyd Barrett asked the Minister for Communications, Climate Action and Environment if he will consider the long-standing request of musicians and artists for broadcasters to be required to play a minimum of 40% of domestically produced music, drama and artistic output; and if he will make a statement on the matter. [14567/20]
View answerI propose to answer this question, pending the formal transfer of Broadcasting functions from my Department to the Department of Media, Tourism, Arts, Culture, Sport and the Gaeltacht. There are a number of factors which must be taken into account when considering the feasibility of introducing broadcasting content quotas. The potential benefit to the Irish artistic industry must be balanced with the rights of broadcasters, subject to their contractual or regulatory obligations, to determine the type of content they wish to broadcast and to maximise their commercial revenue particularly in the context of the current media climate. Importantly, the introduction of broadcasting quotas would need to be consistent with EU law.
An EU based example of broadcasting quotas is that of airplay quotas in France. In 1994, France introduced a mandatory quota for 40% airplay of French language music on French radio stations; this quota was reduced to 35% in 2016. Any quota for airplay would be considered to restrict free movement of services by placing music meeting certain criteria in a more advantaged position. However, a quota for airplay of music in a particular language, as is the case in France, can be justified under EU case law, as the preservation and promotion of an official language of a Member State constitutes a general interest objective. Unlike music in a particular language, a quota system for music, drama or other artistic content produced in a particular place, as suggested in this question, does not appear to have grounds for exemption from the general requirements of EU law. Therefore, a quota for broadcasting content produced in a particular Member State would be considered to restrict free movement of services by placing content produced in other Member States at a disadvantage.
However, it should be noted that traditional and contemporary Arts are among the categories set out the Broadcasting Act, 2009 as being eligible for funding under the Sound and Vision Scheme which is supported by 7% of TV licence fee receipts.
50. Deputy Michael Moynihan asked the Minister for Communications, Climate Action and Environment the position regarding the provision of broadband for a person (details supplied) in County Cork; and if he will make a statement on the matter. [13743/20]
View answer51. Deputy Michael Moynihan asked the Minister for Communications, Climate Action and Environment the position regarding the provision of broadband for a person (details supplied) in County Cork; and if he will make a statement on the matter. [13744/20]
View answer62. Deputy Martin Browne asked the Minister for Communications, Climate Action and Environment if his attention has been drawn to a number of households just outside the reach of national broadband coverage (details supplied); the steps being taken to expedite broadband connection; and if those households within 500 metres of the existing roll out will be treated as priorities in cases in which a clear need for connection exists. [14109/20]
View answer70. Deputy Robert Troy asked the Minister for Communications, Climate Action and Environment the status of the provision of fibre broadband supply on a road (details supplied). [14348/20]
View answerI propose to take Questions Nos. 50, 51, 62 and 70 together.
The Questions refer to premises which are located in the AMBER area on the NBP High Speed Broadband Map which is available on my Department's website at www.broadband.gov.ie. The AMBER area represents the area to be served by the network to be deployed under the NBP State led Intervention, the contract for which was signed in November last with National Broadband Ireland (NBI).
The NBP network will offer users a high speed broadband service with a minimum download speed of 150Mbps from the outset. By the end of next year, NBI plans to pass in the region of 115,000 premises, with 70,000 - 100,000 passed each year thereafter until rollout is completed. All counties will see premises passed in the first 2 years and over 90% of premises in the State will have access to high speed broadband within the next four years. The Government is committed to delivering high speed broadband to every home, farm, business and school in Ireland and my Department continues to engage with NBI to explore the feasibility of accelerating aspects of this rollout to establish the possibility of bringing forward premises which are currently scheduled in years 6 and 7 of the current plan to an earlier date. Further information on deployment activities associated with the rollout can be found on the NBI website http://www.nbi.ie . I understand that some of the premises referred to are close to premises that are passed by eir’s fibre network. eir’s rural deployment of high speed broadband is a commercial undertaking and, as such, decisions regarding the areas and premises served are made by eir. My Department has no role in the matter and has no statutory authority to intervene in decisions of commercial operators, as to where they build infrastructure and provide services.
Throughout rural Ireland, eir’s fibre deployment is primarily focussed on towns and villages and the premises on their outskirts. Where that network ends is where the National Broadband Plan in effect commences to ensure that nobody is left behind. I appreciate people's frustration when they are living so close to a fibre network but cannot get a connection to that network, particularly given the heightened importance of connectivity during the Covid-19 pandemic. The NBP will ensure that in all such cases a future proofed high speed broadband network will be built to serve these premises and work to deliver on this commenced earlier this year.
To support remote working and connected communities, approximately 300 Broadband Connections Points (BCPs) were identified by Local Authorities to be connected to high speed broadband this year. This will assist communities to quickly get free public access to high speed broadband in advance of the main deployment under the National Broadband Plan (NBP). The planned BCP locations, including schools, library hubs, local sports facilities and other public places are available to view on the High Speed Broadband Map on the Department’s website www.broadband.gov.ie.
The BCP delivery project is well underway and connectivity is being provided to each of the sites by National Broadband Ireland (NBI). Subsequent to this, the sites, other than schools, are being Wi-Fi enabled by Vodafone under a contract with the Department of Rural and Community Development. This work also involves the local authorities and site owners determining the services that will be provided for end-users at each site. For the 75 schools that are also part of this project, enabling these schools with Wi-Fi is being led by the Department of Education subsequent to NBI providing the connectivity to the schools.
Bringing connectivity to remote rural locations is central to promoting regional development and BCPs represent an important delivery in the early stages of the National Broadband Plan.
52. Deputy Anne Rabbitte asked the Minister for Communications, Climate Action and Environment if a matter will be addressed in the case of a person (details supplied); and if he will make a statement on the matter. [13750/20]
View answerMy Department has made enquiries with the NSSO who have confirmed that responsibility for the matter raised in the question rests with the company concerned. My Department will liaise with the Deputy to provide further assistance and facilitate obtaining up to date information from the relevant bodies.
53. Deputy Charlie McConalogue asked the Minister for Communications, Climate Action and Environment the financial supports in place for a person to set up a solar energy farm; and if he will make a statement on the matter. [13955/20]
View answerThe Renewable Electricity Support Scheme (RESS) has been established to support delivery of Ireland's 70% renewable electricity target by 2030. The RESS is a competitive, auction-based scheme which invites renewable electricity generation projects, including solar farms, to bid for capacity and receive a guaranteed price for the electricity they generate for up to 16.5 years. The RESS also includes broader policy objectives such as technology diversification and support for community ownership and participation. The first RESS auction is currently underway and includes a specific category for solar energy projects and community owned projects.
Other financial supports are available for solar energy micro-generation projects. These include tax based incentives for the development of renewable technologies such as the Accelerated Capital Allowances Scheme and the Employment and Investment Incentive as well as improvements for farm enterprises supported by the Department for Agriculture, Food and Marine, under the Pig and Poultry Investment Scheme as part of the Targeted Agricultural Modernisation Schemes (TAMS).
As part of delivering the RESS project, and in consultation with SEAI, my officials are exploring a variety of options, including soft loans and grants for community led projects including solar projects.
54. Deputy John Brady asked the Minister for Communications, Climate Action and Environment the number of applications for the online trading voucher received and processed from January 2020 to date by the LEO Wicklow; and if he will make a statement on the matter. [13957/20]
View answer55. Deputy John Brady asked the Minister for Communications, Climate Action and Environment the number of applications received and processed for the online trading voucher from January to December 2019 by the LEO Wicklow; and if he will make a statement on the matter. [13958/20]
View answer56. Deputy John Brady asked the Minister for Communications, Climate Action and Environment if attendance at a seminar is a mandatory requirement as part of the criteria for businesses applying for the online trading voucher; and if he will make a statement on the matter. [13959/20]
View answer57. Deputy John Brady asked the Minister for Communications, Climate Action and Environment when funding will be made available to the LEO Wicklow to allow it to process the high volume of applications received recently from businesses for the online trading voucher; and if he will make a statement on the matter. [13960/20]
View answerI propose to take Questions Nos. 54 to 57, inclusive, together.
The Trading Online Voucher Scheme is managed by my Department and delivered nationwide in partnership with the Department of Enterprise, Trade and Employment, the Department of Media, Tourism, Arts, Culture, Sport and the Gaeltacht, Enterprise Ireland, the 31 Local Enterprise Offices and Údarás na Gaeltachta. The Scheme offers skills training, mentoring and a grant of up to €2,500 to help small and micro-businesses to develop their ecommerce capability.
It is a requirement of the Scheme that prospective applicants participate in an information session, which is currently delivered by way of webinar. The content of the information session includes:
- What the Trading Online Voucher can be used for, and how the Scheme Works;
- The opportunities of ecommerce;
- Tools for helping a business participate in ecommerce; and
- The do’s and do nots of an online ecommerce presence.
The information session also provides prospective applicants with an opportunity to network and learn from the experience of their peers.
In response to Covid-19, funding for the Scheme in 2020 was increased from €2.3m to €19.8m, and new flexibilities were introduced including reducing the requirement for co-funding from 50% to 10% and allowing businesses to apply for a second voucher of up to €2,500 where they have successfully utilised their first one.
During 2019 the Wicklow LEO processed and approved 39 applications for vouchers to a value of €83,523.
In the period 1 January to 1 July 2020 the Wicklow LEO processed and approved 133 applications for vouchers to a value of €310,658.
On 1 July 2020 my Department increased the voucher allocation to the Wicklow LEO from 170 to 262 vouchers or in value terms from €408,000 to €628,800 (based on an average voucher value of €2,400).
58. Deputy John McGuinness asked the Minister for Communications, Climate Action and Environment the arrangements in place to monitor commercial fishing activity on rivers to ensure that regulations are complied with; the number of officials working on these rivers; the rate of non-compliance being reported; the protections in place to safeguard salmon stock in rivers in which stocking levels are under threat; and if he will make a statement on the matter. [13994/20]
View answerInland Fisheries Ireland (IFI) is responsible for oversight of commercial salmon fishing in our 140 salmon rivers. The harvest of salmon, by commercial or recreational means, is only permitted on those river stocks that are meeting their conservation limit - the minimum number of adult fish required to maintain a healthy and sustainable population in the individual river. A suite of secondary legislation is set out annually to establish the status of the salmon stocks in each river and the available surplus on each river that is open for harvest. A further specific suite of secondary legislation is also made each year to set out the various opening and closing dates, specify where commercial fisheries are permitted, and licensing requirements, enabling the management of any quota made available to licensed commercial fishermen from the available surplus. If no surplus is available no commercial quota is established. Protection under the legislation in this area also extends to sea trout over 40cms in length.
IFI deploys 166 officers on a range of duties such as conservation, protection and enforcement of fisheries legislation. These activities are carried out via vehicle, vessel, kayak, personal watercraft, bicycle and foot patrols and using a range of state-of-the-art equipment. IFI also carries out covert surveillance at poaching “hot-spots” and deploys a specialist dog unit trained in the detection of concealed nets and other apparatus.
In 2019, IFI invested almost 150,000 person hours in protecting the fish resources of the State and in the process seized almost 200 nets, totalling some 10kms in length. IFI Officers also undertook 881 inspections of licensed commercial fishing activities during the year and initiated or completed 121 prosecutions for fisheries offences.
59. Deputy Sean Sherlock asked the Minister for Communications, Climate Action and Environment the costings carried out on the programme for Government; and if he will provide documents on those costings. [14025/20]
View answerI understand that the Department of the Taoiseach has published the briefing material provided by Government Departments in accordance with agreed procedures, via the Department of the Taoiseach, as part of Government formation negotiations. The material is available at the following link: https://www.gov.ie/en/publication/7b927-programme-for-government-documents/
60. Deputy Carol Nolan asked the Minister for Communications, Climate Action and Environment the external consultancy organisation or provider which delivered diversity and inclusion training within his Department from 2018 to date; the costs associated with such services; and if he will make a statement on the matter. [14050/20]
View answerThe Department of Communications, Climate Action and Environment rolled out a Diversity and Inclusion eLearning module to all staff in February 2020. The provider was Legal Island and the cost was €4,500. In addition to that two employees attended the National Diversity and Inclusion Conference facilitated by the Irish Centre for Diversity and Inclusion in 2019 at a cost of €1,168.
