258. Deputy Michael Fitzmaurice asked the Minister for Enterprise, Tourism and Employment the evidence, including any evaluation, cost-benefit analysis, economic assessment or statistical analysis, underpinning the policy of providing a 1% interest rate discount on loans (details supplied); whether the Department has assessed whether the discount improves loan performance, repayment rates, business survival or employment outcomes; and if he will make a statement on the matter. [53291/26]

My Department receives regular information from Microfinance Ireland on the overall performance of its loan schemes, including lending activity, loan performance and business and employment outcomes supported by the scheme. This information is used to monitor the operation and effectiveness of the schemes.

However, the information available does not identify the specific contribution of the 1% interest rate discount to those outcomes. Accordingly, the Department does not disaggregate analysis between loan applications through LEO referrals and direct applications.

The primary purpose of the 1% interest rate discount is to incentivise applicants to apply through the Local Enterprise Office (LEO) network, thereby providing access to application support services and increasing awareness of the wider range of business supports available through the LEOs. These supports include business planning assistance, mentoring and training programmes, which can help applicants to strengthen their business proposition and support the establishment, sustainability and growth of their businesses. Engagement between MFI and the LEO network helps to provide a seamless and continuous support experience for clients throughout the application process and beyond.

Officials from my Department meet regularly with Microfinance Ireland, including through quarterly liaison meetings at which the performance of its loan schemes is reviewed and discussed. In addition, Microfinance Ireland engages with the Department through established governance and reporting arrangements.