Dáil Éireann Debate, Wednesday - 4 December 2013
65. Deputy Eoghan Murphy asked the Minister for Jobs, Enterprise and Innovation his views on whether it would be more efficient for the Government, from a time and cost point of view, to direct money ring-fenced for investment in small and medium enterprises, in co-operation with private funds, to new financing models such as peer-to-peer funding. [52050/13]
View answerThe Action Plan for Jobs 2013 sets out a range of commitments with regard to access to finance, including a commitment to investigate the potential for alternative funding mechanisms including peer to peer lending, supply chain finance and crowdfunding. Along with supporting the more traditional models of financing, this would support the need for a broad and diversified range of financing mechanisms. This is in recognition of the need for a mix of instruments to address the various types of company operating in Ireland and also the various growth phases of a company.
The individual financing instruments should not be seen in isolation, but as a potential set of interacting policies. Therefore, it is my view that this is not an ‘either/or’ scenario.
However, in terms of costs for supporting the alternative financing mechanisms, it must be borne in mind that value for money and a strong justification for State intervention is a key consideration. As many of the alternative forms of financing are relatively new and are only currently establishing a presence in Ireland, I am inclined to consider the various available options prior to intervening with taxpayers’ money in an effort to boost take up. Private sector initiatives have their place, and do not always necessarily require Government funding to be kick-started.
If Government funding is directed towards these types of funding models in the future, careful design of any intervention along with monitoring and evaluation will be required to ensure the optimal intended results are achieved.
