Vol. 472 No. 1
41 Ms O'Donnell asked the Minister for Tourism and Trade his views on whether there is an urgent need for the introduction of a further small business loan scheme to assist in the development of tourism projects; and if he will make a statement on the matter. [22050/96]
78 Miss Harney asked the Minister for Tourism and Trade his views on whether there is an urgent need for the introduction of a further small business loan scheme to assist in the development of tourism projects. [22051/96]
I propose to take Questions Nos. 41 and 78 together.
The small business expansion loan scheme announced in the 1994 budget made a £100 million loan fund available to small businesses in the manufacturing, tourism and international traded sectors, £25 million of which was allocated specifically for projects in the tourism sector.
The success of this scheme is evident from the fact that the £25 million allocated for tourism projects was fully approved at the end of September 1994. All the funds had been drawn down at the end of April 1996. A total of 120 tourism projects were assisted and over 2,000 associated jobs maintained or planned. Following the success of this scheme, the Government introduced a new subsidised loan scheme, the access to finance scheme, on 12 September 1995. This fund is being administered by the AIB, Bank of Ireland, National Irish Bank and Ulster Bank. A minimum of £52 million — 25 per cent of the fund — is reserved for the tourism sector. The loans are for a fixed term of seven years at a fixed interest rate of 6.5 per cent. This fund provides a minimum loan size of £20,000 while the maximum loan size is £500,000. Projects are eligible on a similar basis to the small business expansion loan scheme. The banks have indicated that they expect all the funds under the scheme will be drawn down by the end of this year.
The introduction of a further small business loan scheme would be a matter, in the first instance, for my colleague the Minister for Enterprise and Employment who has assured me that, if another scheme is devised, the importance of the tourism sector to the economy, which was recognised in the small business expansion loan scheme and the access to finance scheme, will not be overlooked.
I thank the Minister for his reply. Will he agree that the return for the investment of £25 million arising out of the budget allocation for tourism under the small business loan scheme in the budget of 1994, leading to the creation and maintenance of about 2,000 jobs in the tourism sector, is a very good return for that kind of investment? That being so, is it the Minister's intention to urge the Minister for Enterprise and Employment to continue that kind of scheme in the budget of 1997? What action is he taking to make that happen?
I agree that job creation and retention of that magnitude is something we have to take seriously. Already the Minister for Enterprise and Employment has given an assurance to the Minister for Tourism and Trade, Deputy Kenny, that if a further scheme is introduced finance will be available for tourism. I sincerely hope the Minister will introduce another scheme or reintroduce one of the previous schemes. I will convey the Deputy's views to the Minister.
