Brian Lenihan Jnr (Dublin West, Fianna Fail)

Nobody wants viable businesses to fail because banks will not lend them money. At my meetings with representatives of the various financial institutions over recent weeks, I asked the institutions covered by the guarantee scheme to consider the contributions they can make to the economy by offering appropriate credit initiatives to small and medium-sized businesses and others. Therefore, I welcome the fact that certain institutions have announced initiatives in this regard.

The Deputy may be interested to know that I recently met the vice-president of the European Investment Bank, Mr. Plutarchos Sakellaris. The bank recently announced that it intends to provide additional funding through its lending facility to small and medium-sized enterprises in the EU. Mr. Sakellaris confirmed that the European Investment Bank has been in discussions with a number of Irish financial institutions about participating in this facility for small and medium-sized enterprises. The bank hopes that agreement on providing such loan facilities can be finalised as soon as possible. I have urged the Irish banks to utilise this facility to the maximum extent possible, with a view to making additional funding available to small and medium-sized enterprises quickly. I am pleased that a number of banks have announced their intention to do so.

Along with my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, I have been in regular contact with the banks to discuss the flow of lending to small businesses. The Central Bank's monthly statistics for October showed that lending to the Irish economy was essentially flat in that month. While this is a matter of concern, we should be cautious about drawing strong conclusions from data pertaining to a single month. Forfás and Enterprise Ireland are surveying 200 businesses, which are supported by county enterprise boards and Enterprise Ireland, to gather more detailed information.

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