Fine Gael leader Enda Kenny has accused the Departments of Finance and Enterprise of engaging in a “great deal of messing” about a loan guarantee scheme promised by the Government in January.
Mr Kenny said the scheme “has not seen the light of day and thousands of small Irish businesses are hanging on by their fingernails.”
But Taoiseach Brian Cowen said the issue of loan guarantee provision “has to be looked at very carefully” because “we have already given credit plans from the banks to ensure on the basis of their successful recapitalisation that they’ll be in a position to have credit lines to business”.
During leaders’ questions in the Dáil this morning, Mr Kenny said the Tánaiste committed to a loan guarantee scheme but it had not emerged.
“There are 80,000 small businesses in the country,” he said. “They employ almost 800,000 people. You cannot solve every problem but this is one you can solve. You did commit to it.”
However, the Taoiseach said the issue of the State "being further guarantor in respect of loans to business in addition to what security business is already providing something that has to be very carefully considered”.
“There are many supports in place from Enterprise Ireland which are assisting small business. But the working capital needs of small business are best protected and best provided for once the full recapitalisation of the banking system is in place and that’s at an advanced stage.”