Michael Noonan (Limerick City, Fine Gael)

The reason the Central Bank is revising the existing codes is that, having consulted interested parties, it realised they are inadequate. One is operative since 4 November and the other will be operative from January next. The Central Bank normally puts the relevant documentation on its website. I do not know whether these codes are posted but I assume they are and that the Deputy will be able to gain access to them in detail on the website.

The other issue, which is related to the example the Deputy raised, concerns the reason lending institutions are refusing loans to companies that appear to be viable. A case could be referred to the director of credit control. If there is a refusal, the director will examine all the documentation, without any particular cost to the applicant. If he feels the case is one in which credit should have been extended, he contacts the lending institution involved and advises it of his decision. His decision is not binding but there is an agreement with the credit institutions that they honour his recommendation. To date, they have done so. Approximately one third of the cases the director has examined have been reversed. There is, therefore, potential for reversal. The Deputy may be aware of the website of the office of credit control. This office, rather than the codes of practice, seems to be fitting in the case mentioned by her.

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