Govt fails to complete measures in Action Plan for Jobs
The Government has missed delivery on its 'Action Plan for Jobs' for the third quarter in a row.
An 87% completion rate in the last three months follows on from 96% and 94% rates in the first two quarters, though all measures promised in the first six months have now been delivered in full.
Most of the deterioration was due to failing to deliver on legislation and the Coalition said that problem will persist in the next report.
This quarter saw the worst completion rate yet at 87%, where 58 of 67 measures were delivered.
It comes as the Government announced the Credit Guarantee Scheme which will start on Wednesday, October 24, and is "expected to provide an additional €150m in lending for small businesses per year over the next three years".
The scheme is aimed at SMEs who currently struggle to get finance from the banks.
It will target businesses in two specific situations - where businesses have insufficient collateral, and where businesses operate in sectors with which the banks are not familiar. It provides a 75% State guarantee to banks against losses on qualifying loans to firms with growth and job creation potential.
In a statement, the Government said: "All actions scheduled for delivery in Q1 and Q2 have now been implemented, meaning an overall implementation rate of 96% so far this year."
Among the measures delivered in this quarter were the Microfinance Fund, new Technology Centres in Cloud Computing and the Smart Futures initiative - a science, technology, engineering and maths (STEM) careers partnership between ICT Ireland, the Irish Medical Devices Association, Engineer’s Ireland (STEPS) and SFI/Discover Science and Engineering.
The Microfinance Fund started on October 1 and will provide for loans of up to €25,000 for viable businesses with less than 10 employees who have had difficulty accessing credit from the banking sector.
The Taoiseach said: "Getting Ireland working again remains the top priority of the Government and in the Action Plan for Jobs we have an essential tool in building the new economy. The focus now is to get all remaining measures delivered before the end of the year.
The Minister for Jobs, Richard Bruton, said: "Access to credit remains a key issue for many businesses, and if we are to see the growth and jobs we need, Government must to act to fill gaps where specific market failures exist.
"Through the Action Plan for Jobs, we are delivering in 2012 a number of measures to fill these gaps and ensure that businesses do not face unnecessary obstacles as they attempt to expand and create the jobs we so badly need, including the €90m Microfinance Scheme, the €120m second call under Innovation Fund Ireland and the €150m Development Capital Scheme.
"The Credit Guarantee Scheme will benefit innovative, job-creating businesses that face obstacles accessing credit because they do not have enough collateral, or because they operate in sectors which the banks are not familiar with. These are the businesses we need to stimulate our jobs recovery, and with new supports like the Credit Guarantee Scheme I am determined to ensure that they can expand and create the employment we need."
The Government also admits that problems with delivery of legislation will impact on the success rate in the fourth quarter.
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