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You are > Home > Support for our small business sector is critical
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Wednesday, July 21, 2010
Support for our small business sector is critical
The indigenous small and medium enterprise sector forms the backbone of our economy, helping to preserve local communities through employment and investment, writes David Dwane.
The dependence on this sector is even higher in the west of Ireland where many parts of the region are deprived of large-scale enterprises.
But viable SMEs operating in the domestic market that are vulnerable to the threats posed by the economic downturn need just as much support as the more esteemed export sector.
The announcement by the Government that it will tell Bank of Ireland and AIB to lend €12bn to businesses over the next two years is welcome news.
But ISME, the group that represents small and medium businesses, is concerned that this additional finance may not be made available across all viable businesses in all sectors.
ISME Chief Executive, Mark Fielding said: “First and foremost, any improvement in bank lending to SMEs is welcome. However, it is vitally important that the two banks involved are not allowed to cherry-pick the sectors to which they will lend and that all viable but vulnerable SMEs will have access to finance.
“There must be a commitment to treat all enterprises fairly and an acknowledgement of the interdependence within the SME sector. The domestic trading entrepreneur must not be abandoned by either Government or the banks, as those companies who trade solely in the domestic marketplace are a vital cog in the economy and deserve a parity of esteem with exporters and multinationals”.
ISME has demanded that the Government extend the lending to all SMEs and that the Central Bank monitors and measures the initiative to ensure that the lending is targeted at those viable businesses that require finance.
Meanwhile, Minister for Labour Affairs Dara Calleary, confirmed that the Government will receive monthly progress reports to ensure that the banks are complying with their commitments.
“The banks have effectively been bailed out following years of reckless habits and they must now show their respect for the taxpayer who has invested in their recovery by lending to SMEs, and in turn helping to create and maintain jobs,” said Minister Calleary.
The Minister has advised any local business that is experiencing difficulties to contact the Credit Review office with their details.
It can be reached at 1850 211 798 or by email at info@creditreview.ie.
“The Minister for Finance, Brian Lenihan, will continue to work with the Credit Reviewer to ensure that this plan delivers for businesses in Mayo and around the country,” Minister Calleary concluded.
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