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

There is a lot in the Deputy's questions. I thank both Opposition parties for their support for the two initiatives - microfinance and the credit loan guarantee. They are new and have not been tried before. We are determined to improve them, and the Minister of State, Deputy Perry, has outlined the position concerning microfinance. There is also a later question about the credit loan guarantee. We have initiated a review and are re-examining the terms of that guarantee. We want to improve it in order that it can meet the ambitions we all have for it.

Data are hard to get concerning the refusal of loans to SMEs. However, the Red C survey undertaken for the Government shows an improvement in refusal rates, although it is still too high. We must ensure the requirement to be refused a loan before accessing microfinance or a loan guarantee should not become a bureaucratic obstacle. We are trying to streamline that as well as ensuring bankers in the front line know such schemes are available. They should direct people, at the time of a refusal, to actively consider these alternatives.

Banks are meeting their lending targets but the Deputy is right that new lending to SMEs has only risen in two quarters out of the last four. It is bouncing along at a level of about €2 billion a year. I would certainly like to see that figure growing. That is not to say, however, that the other restructuring offers are not important as well. We have ambitions to have more targets in the area of new lending.

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