Speech by the Taoiseach Enda Kenny T.D. Strategic Banking Corporation of Ireland

The mission of the Strategic Banking Corporation of Ireland is aligned to that of Government.

To help businesses to grow, to create jobs, and to secure Irish recovery.

Following many difficult years for the Irish people the economy is now moving further into recovery.

But I realise that most families are only now just beginning to feel the benefits of the recovery, which remains fragile and incomplete.

This Government has a plan to secure the recovery, add 40,000 jobs this year and deliver full employment by 2018.

Full employment is not just about statistics. Unemployment is the main cause of inequality and unfairness in our society. Getting a job changes a person’s life. It provides purpose, financial independence and the opportunity to provide for family and to contribute to communities.

More jobs fund better services. More jobs mean less tax on those already at work. More jobs provide opportunities for our brothers, sisters and children to come home.

The good news is that unemployment is falling, but it is still way too high.

While this Government has given much attention – rightly – to ensuring that Ireland remains a highly attractive location for foreign investment, we also recognise that small Irish businesses will be the backbone of the Irish economic recovery and job creation across the country.

I am constantly awed by the hard work, doggedness and ingenuity of small business owners and workers.

It has not been easy, the financial collapse has been particularly hard for smaller businesses, loss of customers and the withdrawal of credit as banks contracted or exited the Irish market

We are now seeing a significant expansion in the numbers of small businesses in the country.

They deserve strong Government support. If we are to secure the recovery for all parts of the country, then small businesses will play a key role.

Central to our plan is improving credit availability at low interest rates for business, and particularly small businesses.
This was the feature of discussions I had with Chancellor Merkel on ways to reinforce Ireland’s economic recovery by improving funding for the real economy.

As a result, in late 2013 the German Government had asked KfW, the German development bank, to work with the German and Irish authorities in order to deliver on this initiative.

I would like to commend Minister Noonan and his officials for driving this initiative forward from concept to establishment so swiftly.

Taking this initial offer, we added two further funding sources – the European Investment Bank and Irish Strategic Investment Fund – to maximise the reach of the Strategic Banking Corporation of Ireland.

At the core of this initiative is the Government’s desire to give small Irish businesses across the country the chance to grow and prosper.

This requires the availability of finance on competitive terms – this has not been the case in recent years, as some foreign banks have exited the market and Irish banks have contracted.

A key aim of this initiative is to stimulate more competition in the Irish market for lending to small businesses. I want to see more banks and other sources of credit operating in Ireland to drive down costs for small businesses.
The SBCI will also complement other Government small business programmes such as the Credit Review Office, Microfinance Ireland, the Credit Guarantee Scheme, Enterprise Ireland schemes and the Irish Strategic Investment Fund.

Finally, I’d like to congratulate all those involved in the establishment of the SBCI and wish them well as they work with our entrepreneurs to create jobs and secure Irish recovery.