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

That is quite a range of questions. The Credit Review Office is working extremely well. The real issue is that we need to see more businesses appealing decisions. There have been approximately 25,000 credit refusal decisions in total, not enough of which have been appealed, either internally in the bank or to the Credit Review Office. A strong message to businesses that are refused credit is that they should pursue an appeal. I would be very disturbed if there were any suggestion relationship managers were discouraging this, as the Deputy suggested. We are seeking to ensure banks will outline clearly in writing as a standard part of their responses the right to appeal and the availability of alternative loan mechanisms such as the loan guarantee and micro-finance.

The resources of the Credit Review Office are being strengthened. That was part of the decision at budget time by the Minister for Finance. The Central Bank is developing debt resolution targets for the banks. It is addressing this issue in much the same way as it addressed mortgages. It is recognised that we need to see viable businesses put back on a footing where they can continue to develop.

I fully acknowledge what the Deputy is saying on the low level of new funding for SMEs. This is the issue we are targeting. As the Deputy stated, there is only €2.5 billion in new lending to SMEs. As the Deputy knows, the Government has put roughly €2.5 billion in SME funds into place through various models to supplement this. However, we need to see more activity by the banks in this regard.

On the last comment, the overall stock of debt is declining for SMEs. The issues to be examined are new lending and restructuring. Restructuring is not all bad. That some lending amounts to restructuring is not bad because it is a way of resolving some of the issues that arise. We need, however, to continue to focus on this issue. That is what we will do in the course of the year.

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