We have entered the second year of the greatest crisis in recent history. The focus remains on suppressing Covid-19. However, those who have seen their businesses suffer and jobs evaporate are beginning to place serious emphasis on where we are heading and what the future holds. They are asking how the Government intends to rebuild for the future. As the lead Minister with responsibility for this vital task, will the Tánaiste outline his plans and his vision to revitalise our business sector and our economy? Many sectors of the Irish economy need to be nurtured and assisted with practical support to recover from the devastation of Covid. It is accepted that aviation, retail, hospitality, tourism and the arts and entertainment have seen the collapse of their business.

The aviation industry in Ireland is decimated. Prior to the pandemic, aviation supported 140,000 jobs in Ireland. The aviation industry has issued a stark warning that the longer the disruption to air travel continues, the less appealing Ireland becomes to foreign investors, which will be crucial to our recovery. It is estimated that 75% of the tourism sector depends solely on overseas visitors. There were no visitors last year, and as we approach the start of this year's season the outlook is bleak. Without our own population fully vaccinated, there is little likelihood that Ireland will be the destination of choice for tourists. Lack of tourism for a second consecutive year will spell doom for many who depend on tourism as their sole income.

Before this pandemic, 250,000 SMEs were the main source of jobs and enterprise. They are the backbone of urban and rural communities. They are family businesses, farmers, hairdressers, coffee shops and tech companies. They are innovators and risk takers. They need to reopen and trade, develop and grow again. We need to review the current Irish banking environment in respect of the provision of lending to SMEs, the financing of SMEs, the terms of credit and the banking alternatives available to them. Pre-pandemic SME interest rates were the second highest in Europe. This must be addressed.

The time has come to concentrate on solutions. Hand in hand with the plans to suppress the virus must be a plan to rebuild our economy. The key focus must be on sustaining Irish jobs and exports and increasing the resilience of the enterprise base. There is now an opportunity for the Government to refresh its approach to delivering for the long-term needs of the economy. Chambers Ireland has said that with the current availability to the Government of low-interest finance, there should be a doubling of our investment in energy infrastructure and strategic transport as well as an upskilling of our workforce and support for gender equality through investment in childcare. What preparations are under way? What plans are being made to revitalise and stimulate the Irish economy? What is the timeline for Government initiatives to reboot and grow our economy? With the information available to the Tánaiste's Department, can he see our economy bouncing back in the short term?

I thank the Deputy for the question and for his ongoing interest in issues affecting businesses and employees not just in Tipperary but across the country. Our strategy is threefold. First, it is to save as many businesses that are viable and as many jobs as we can during this period of pandemic and lockdown. There has already been €11 billion invested in the economy, propping up the economy through pandemic unemployment payments, the wage subsidy scheme, the commercial rates holiday and all the other financial supports for workers and businesses, which will remain in place until at least 30 June and will need to stay in place beyond 30 June, I think, for some businesses, particularly some of those the Deputy mentioned.

The second and most important part of the strategy, of course, is to beat the virus through testing, tracing, non-pharmaceutical interventions and vaccines to get the virus down to low levels, therefore allowing us to reopen the economy safely and in a sustainable way. Businesses that I talk to say to me that when they are told they can reopen next time, they want to know that it will be for good or at least for a prolonged period. That is why we want to get the numbers of sick people, the numbers of deaths and the numbers of cases down very low before we reopen again.

Third, once we do that - and that is the time to restimulate and reflate the economy, when the economy is reopening - one thing we will definitely have to do is to get people spending the savings that have built up. There is €12 billion, €13 billion or €14 billion in savings in the Irish banks at the moment that was not there a year ago, and we need to avoid the paradox of thrift and encourage people to spend and invest that money once they can. It is often the case that people are unable to spend at the moment because shops and businesses are closed. We need to make sure we encourage people to spend that money in our economy once it becomes possible for them to do so. Part of this is giving people the reassurance that while we will need to bring the deficit down, that will not involve cuts to pre-existing, pre-pandemic welfare payments or pensions, will not involve pay cuts, at least where we control pay levels, and will not involve increases in income tax. I think that will give people confidence to spend and invest when the economy is opened again.

There is also the national development plan, the €850 million from the EU, and the €1 billion from the Brexit adjustment reserve fund, all of which can be used to stimulate and reflate the economy, once it is able to reopen. That is the key to it, of course.

Finally, on aviation, €200 million has been already provided to the aviation sector under different headings, to airports and airlines. We are in further discussions with Aer Lingus regarding a package of financial support for that airline.

The availability of and access to funding is crucial for small and medium sized businesses. The option of establishing a State-supported community bank should be reviewed. The post office network and the credit unions have the capacity and ability to bring financial services to the public. This community model works very successfully in Germany and other European countries. Pillar banks and community banks can co-exist in this market.

The departure of Ulster Bank has left the Irish consumer reliant on a duopoly. Ulster Bank holds approximately 20% of SME lending. We now know the Bank of Ireland and AIB are buying up its loan books. This will mean less competition for the consumer. Our economy needs a competitive edge within our banking system. Pillar bank monopoly will lead to restrictive and selective lending. It will facilitate higher loan charges and general manipulation of the consumer. Lack of competition in the financial sector will disadvantage business and enterprise and hold back our economy. I ask that this banking situation be reviewed. We should avail of the opportunity presented by Ulster Bank leaving-----

The Deputy is absolutely right that access to finance is crucial for businesses, and particularly the small business sector. It is not a well-known fact but currently one third of all lending to SMEs is now Government backed - it is State-backed lending. That is done through various schemes, including Brexit loans, Covid loans and the future growth loan scheme. It has been recently confirmed that Microfinance Ireland, which lends to very small businesses, will now be able to lend through the Strategic Banking Corporation of Ireland, SBCI. That will allow us to provide additional lending through Microfinance Ireland to very small businesses. It will be welcome in small towns and villages and rural areas in particular.

I absolutely agree that the decision of Ulster Bank to leave State is bad news, but it presents an opportunity. The Minister for Finance is talking to its owner, NatWest, and has had some discussions with AIB and Permanent TSB on what opportunities might arise to reform banking and create new forces in the banking sector in Ireland.