Dáil Éireann Debate, Tuesday - 23 June 2020
361. Deputy James O'Connor asked the Minister for Business, Enterprise and Innovation her plans to introduce a short-term export credit insurance scheme such as has been announced in other EU member states, in particular for those in the agriculture sector; and if she will make a statement on the matter. [11722/20]
Amharc ar fhreagraI am aware of the impact that the Covid-19 pandemic has had on all businesses and this includes the private trade credit insurance market.
As a result of the significant economic shock, there is increased uncertainty regarding the financial performance of many companies in our economy. I understand that the trade credit insurance companies have had to adjust their coverage in response to this adverse economic environment.
In response the Government has already introduced a range of measures and supports to the economy in order to sustain and over time facilitate a return to a more normal trading environment. This in turn should permit the trade credit market to reconsider the risk environment and adjust their coverage as appropriate.
My Department continues to consider further options for appropriate and effective assistance to businesses and this includes the possibility of supports to ensure the continued provision of credit insurance and the appropriate mechanism to do so. This has included examination of trade credit interventions undertaken in other countries.
My officials are engaging with the private trade credit insurance providers to assess the impact of the current crisis on trade credit insurance and the scale of the consequential impact on Irish businesses, and whether specific support can be provided to this market and how this could complement other general supports provided by the Government.
As this issue also affects those in the Agriculture sector, officials from my Department are engaging with their colleagues in the Department of Agriculture, Food and the Marine in evaluating whether a support for Trade Credit Insurance is required.
Any support will need to be considered alongside these other available options, which may be capable of achieving an effective outcome and minimising the risk exposure to public funds.
This is an ongoing process.
