Andrew Boylan
Question:85 Mr. Boylan asked the Minister for Enterprise and Employment if he has had negotiations with financial institutions with a view to making more long term finance available to Irish business at a reasonable cost.
Written Answers. - Finance for Irish Business.
I have not had formal negotiations with financial institutions on the specific issue raised by the Deputy. However, a number of Government initiatives are currently in train to address the issue of finance for business, including the provision of long term finance.
The Minister for Finance is having discussions with the Irish Association of Pension Funds with a view to encouraging increased investment by pension funds in Irish venture and development capital projects. Arising from these discussions it was agreed that a detailed study should be carried out to assess, among other things, the opportunities for investment in this area. This study has just been completed.
Secondly, financial institutions have committed £95 million to a scheme of special loans to assist small, growing businesses. These loans are to be used in conjunction with the county enterprise partnership boards. The loans do not involve personal guarantees, are available at AA rates of interest and can be flexible with regard to the period of repayment.
I would also like to mention the work of the Task Force on Small Business chaired by the Minister responsible for commerce and technology, Deputy Seamus Brennan. One of the areas the Task Force is examining is the finance requirements of the sector. The Task Force has met with representatives of the financial institutions to discuss the banking and financial needs of the small business sector. I look forward to the outcome of the work of the Task Force with interest.
Finally, I would mention that earlier this year I met with representatives of the four associated banks to discuss business trends and the outlook for the business sector generally in Ireland. Ongoing liaison is being maintained between the banks and my Department in the interests of promoting all segments of the business sector.