Sandra McLellan (Cork East, Sinn Fein) | Oireachtas source

The SME sector is responsible for more than 78% of all jobs in the economy. We supported the Government when it introduced the micro-enterprise loan and credit guarantee schemes.

These schemes were developed to supplement bank lending and not replace it. They are not performing and should be reviewed. Given that the cost of the credit for the microenterprise scheme exceeds the market rate, this is not surprising. However, we believe that if amended, these schemes can play a role for SMEs.

Bank lending to the SME sector continues to be troubled. SME rates of refusal are growing again, as demonstrated by ISME surveys. The Credit Review Office continues to challenge the individual decisions of banks after an application has been refused.

How can the Government use its standing as a major creditor of the banking system to ensure banks lend to meet the cashflow and investment needs of SMEs? In his meetings with the banks, did the Minister raise the issue of meaningful additional lending targets as separate from roll-over loans? Has he raised the issue of legacy loans arising from property that are dragging down viable businesses? When will banks start putting the people's money to productive use?

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