Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

Some of my transferred questions were to seek the Minister's views on whether the Credit Review Office had sufficient resources to fulfil its mandate. What are the Minister's views on the success of the office to date? One of my questions sought clarification on whether the Minister agreed there should be formal targets for the banks in respect of debt resolution for SMEs similar to those pertaining to mortgage arrears. I will cheekily ask the Minister these questions now if he can answer them.

It is important to indicate that the February report from the Central Bank on SME lending showed that, of a total of €8 billion in new lending advanced by the pillar banks, only an estimated €2.5 billion was deemed to be new lending, with the balance constituting loans that had been rolled over. Therefore, only €2.5 billion represented new money to support new projects. The pillar banks' SME loan books contracted by €2 billion in 2012 as the €2.5 billion in new lending was outweighed by €4.5 billion in net repayments. Therefore, we are still in very serious circumstances and there are no signs of a resolution.

While the rate of refusal may be declining, it continues to be the case that there are no submissions. Individuals are being advised by local branch management not to proceed with their loan applications because they will not get anywhere. We all know this. No amount of enterprise weeks or radio programmes concerning bank branches will get the Minister beyond that issue.

Businesses must submit a formal application to get into the credit review process. However, when they are being told by their relationship manager not to submit one, they are in a very difficult position. With regard to legacy debt of SMEs, particularly on property, will the Minister consider proposing to the Minister for Finance that targets be set for resolving the issue?

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