Call to fast-track SME credit scheme

THE Institute of Certified Public Accountants in Ireland wants a fast-track Dáil debate on the Government’s proposal to act as guarantor on bank loans to small businesses.

Employers associations have welcomed Tánaiste Mary Coughlan’s plans to back a credit guarantee scheme to re-ignite indigenous firms. Even Fine Gael has given the move its qualified approval. However, some senior officials in the Department of Finance have warned that the proposed scheme could be a further bailout for banks funded by the taxpayer.

The Irish Exporters Association (IEA) said this access to funding would help protect the jobs of 147,000 people working in 3,800 small exporting businesses. The Institute of Certified Public Accountants in Ireland, which wants the debate to be fast-tracked.

IEA chief executive John Whelan said: “Businesses in key competitor countries are being aggressively supported by use of credit support and loan guarantees as well as export promotion tools.

“Urgent real action by Government, not ‘rabbit out of the hat’ announcements by the Tánaiste, is what will help small exporters pull out of the credit trap they find themselves in.”

The Credit Supply Clearing Group, a cabinet sub-committee, has assessed the views of Chambers Ireland, the SFA, ISME and other representative bodies. These views are being incorporated into a credit review system being established by John Trethowan, an experienced banker with a demonstrated commitment to public and social service.

The guidelines are with the Attorney General to ensure the scheme’s legality.

The Dáil debate will take place on foot of this analysis.