Joanna Tuffy (Dublin Mid West, Labour)
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Question 128: To ask the Minister for Enterprise, Trade and Innovation his response to the quarterly report of the Credit Review Office; if he accepts that there is a significant gap between the official positions of the banks and the experience of small and medium sized companies seeking to access credit; and if he will make a statement on the matter. [36375/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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Access to bank credit for businesses, particularly SMEs, has been central to Government Initiatives in addressing the crisis in the banking sector. Both the 2009 and 2010 Bank Recapitalisation arrangements provided specific commitments from the recapitalised banks to assist SMEs.

Under the 2010 Bank Recapitalisation arrangement, AIB and Bank of Ireland have both committed to making available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. This must include funds for working capital for businesses. Their lending plans were reviewed by the Credit Review Office and the Department of Finance and were found to be credible. Both the Credit Reviewer, Mr. John Trethowan, and the Department of Finance receive monthly progress reports from the two banks which allows them to ensure that they deliver on the strong commitments given in their plans to support viable businesses in all sectors of the economy and in every area of the country. The Credit Review Office is also available to pursue cases where SMEs are refused credit from the recapitalised banks.

The first Quarterly Report published by the Credit Review Office last July outlined that Office's outcome in reviewing the lending policies and guidelines of the banks concerned and also presented the Office's experience emerging from the initial cases reviewed by it. These issues will continue to be reported on in subsequent quarterly reports.

I would urge any viable SME's who have been refused credit by any of the recapitalised banks to make use of the review services of the Credit Review Office. Applicants for bank credit should ensure they submit formal applications to their banks so that outcomes on these applications can be closely monitored and information gaps identified.

I have ongoing contact with the main banks in relation to their lending to businesses and will, together with my colleague the Minister for Finance, and John Trethowan of the Credit Review Office, continue to ensure that they meet their lending commitments under the 2010 Recapitalisation package in terms of providing sufficient credit to the business sector. In this regard, John Trethowan recently indicated that the situation was much more positive for bank customers than it was six to nine months ago.