Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

Just before Deputy Cullinane came in, Senator Quinn had raised this issue. The Senator is correct in saying that the EU directive is coming in. The only legislation in this field is the legislation I introduced in 1996 in respect of the State's obligation to pay its bills on time. That Act is effective but it does not apply to every State agency. The Senator is correct in saying we need to get the full gamut of State agencies paying on time. We have been trying to get a voluntary code in this area as well as the EU directive. The EU directive provides a framework within which businesses should operate whereby they must pay on time and if not they must pay interest, including penalty interest and so on. Given the need for a culture of compliance, we are working with the business organisations. It is largely business-to-business. Where one business seeks a longer period before making its payments, it means another person is left without. It is important to get businesses working in this field. It is not an area in which one can easily pile in with legislation because one does not know the pressures under which an individual business is operating. There is a need to develop codes of practice and we are working on that issue.

It is not the Government's intention to have a referendum on upward-only rent reviews. We will have a patents referendum but that is a different issue and has to do with the patents court.

I do not know the full details of Tara Mines situation, but the LRC is available to support both sides in any situation. We have an experienced service that will lend support.

Deputy Calleary said that examinership is prohibitive for some companies. One issue that is being provided for in the companies legislation that will come before the House in the near future is that we are bringing examinership to the Circuit Court, which will significantly reduce the cost. That should make it more accessible to people. The Deputy is correct in saying the credit guarantee scheme is only in its infancy. We will be monitoring it to ascertain why there is not a greater uptake. We are conscious that the uptake is low. The Deputy raised the issue of microfinance. The rate available is keener than what was available from similar players in the field. I am confident that under the chairman the administration will be kept to the minimum. It is a very tight ship and there will be no excess. The board reduced the original rate, which was mentioned. If we can reduce it we will certainly do so. It is taking on an area of credit that is high-risk. As it is going to be a loss-making area, we are trying to achieve a balance, making sure that people get access to funds and that there is reasonable cover for the taxpayer in taking the risk.

We will closely monitor the development of this and other schemes by means of which the State is taking an initiative to drive forward on new sources of finance in order to see whether we are getting matters right. There is a one-year review in respect of the credit guarantee scheme. If it needs to be tweaked, then the one-year review will facilitate the carrying out of a proper evaluation.

The Deputy referred to a number of companies in Monaghan. The issues in this regard do not relate primarily to enterprise, rather to the products involved. The companies in question must get to the bottom of this matter in order that they might be in a position to re-establish the robustness of their products from the point of view of source, origin, etc. This is an important process and no effort is being spared to ensure that the reputation of this extremely important sector will be restored and that there will be no question as to the fact that the companies in it operate to the requisite standard. Obviously, we will monitor the position through Enterprise Ireland. We will be available to assist in any way possible but it is crucial that the investigative work should reach a conclusion. The Minister for Agriculture, Food and the Marine, Deputy Coveney, is working might and main to deliver in this regard.

Deputy Lawlor referred to delays on the part of the banks. The latter have agreed with the Credit Review Office a certain format for accepting loan applications and for a 15-day turnaround in respect of decisions. The position in this regard is monitored. The past number of reports have indicated that the banks are not delivering on the 15-day turnaround. This is a matter in respect of which they must improve their performance. We will be taking steps on this issue. It was announced earlier today that the mortgage and banking committee is being expanded. I will now be a member of the latter and I will certainly bring the concerns of those in small business to the table. As has been pointed out during this meeting, the banks can do better. Obviously, they have problems through which they must work but there is no excuse for failing to deliver in respect of the 15-day turnaround in order that people might, if their applications are unsuccessful, move on to try to access other sources of funding.

If Deputy Lawlor wishes to bring the particular case to which he refers to our attention, we will pursue it. Mr. John Trethowan of the Credit Review Office is a very pragmatic individual and is very active in this field. I urge people to bring their cases to him. There is a small flow of cases at present and Mr. Trethowan is overturning the decisions made by the banks in more than half of the cases brought to his attention. This clearly reflects the fact that banks are too quick to refuse applications. Perhaps the Deputy could bring the case in question to our attention and that of Mr. Trethowan and we will try to pursue it.