Peter Barry
Question:28 Mr. Barry asked the Taoiseach the terms and conditions that were agreed with the major banks for the £50 million loan package announced on 8th September, 1992.
Written Answers. - Job Creation Funding by Financial Institutions.
Ruairí Quinn
Question:29 Mr. Quinn asked the Taoiseach the meetings which he had in September, 1992, with representatives of the financial and insurance institutions which resulted in a commitment to make up to £80 million available for job creation; if he will give details of the agreements and the arrangements made for their detailed implementation; and if he will make a statement on the matter.
Ruairí Quinn
Question:30 Mr. Quinn asked the Taoiseach the steps, if any, which have been taken to promote the provision of equity capital for small and medium sized enterprises; and if he will make a statement on the matter.
I propose to take Questions Nos. 28 to 30, inclusive, together. The four Associated Banks — Bank of Ireland, Allied Irish Banks, Ulster Bank and National Irish Bank — Woodchester Credit Lyonnais Bank, ICC, ACC, the Trustee Savings Bank and the Irish Permanent Building Society have collectively committed funds of £95 million to be used in conjunction with the County Enterprise Partnership Boards.
These funds will be available for loans on favourable terms, including no guarantees in the case of incorporated entities and the underwriting criteria will reflect a balanced view of the financial institutions' good commercial practice and social responsibility in playing their part in achieving the aims of the County Enterprise Partnerships in tackling the unemployment problem. In addition, there will be an active policy by the Banks to provide specialist staff to assist in the evaluation and operation of projects on a "hands-on" basis.
Enterprise projects submitted to County Enterprise Partnership Boards for funding will be evaluated in terms of commercial viability by an Enterprise Sub-Committee of the Board. Personnel designated by the financial institutions will assist in the evaluation and the Board will decide the most appropriate method of funding, whether by direct grant, loan, interest subsidy or equity for approved projects. Officials of my Department are now liaising, and will continue to liaise, with the financial institutions on the detailed implementation of the scheme.
Discussions are continuing with the financial institutions in particular with other Building Societies and with the Insurance Companies on further contributions to the overall Enterprise Fund. The Government are satisfied that there will be a further positive response from the financial institutions arising from those discussions. Equity capital will be included in the further contributions, in particular from the Insurance Companies.