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

Finance for growth of business is of enormous importance, and a chapter has been devoted to it in Action Plan for Jobs 2015. Irish small and medium enterprises, SMEs, traditionally have had a very high reliance on banks and bank debt. This has been a particular problem in the face of the radical restructuring in our banks and the constraints that has put on lending. Government strategy has therefore focused on a number of strands: improving access to bank credit; developing sources of funding alternative to the traditional banks; and helping enterprises to better manage and structure their financial affairs. As the Deputy is aware, a number of alternative funding sources have been developed, and this year the establishment of the Strategic Banking Corporation of Ireland is designed to develop new funding products for SMEs and to facilitate new entrants. Its target is to provide €800 million in new finance to SMEs.

The extension of the mandate of the Credit Review Office has been an important support to enterprises experiencing difficulty. It has had a strong track record in overturning bank decisions. The establishment of the State bodies group involving the Central Bank, the Office of the Taoiseach and the Department of Finance along with sectoral agencies and Departments has also ensured a continuing focus on restructuring within the finance sector to meet the needs of SMEs. Targets have been set by the Central Bank for the pillar banks to engage with businesses that require debt restructuring. I understand these targets are being met. We have introduced provisions for SMEs to apply for examinership in the Circuit Court, making it cheaper and easier for them to do so.

As part of the review of the credit guarantee scheme, CGS, and on foot of concerns raised by the Credit Review Office and business representative organisations, I have decided to take action to assist SMEs whose banks have left or are leaving the Irish SME lending market. This will see a new CGS in 2015 in accordance with the terms of the Credit Guarantee Act 2012, which will allow guarantees for refinancing loans where an SME's bank has exited or is exiting the Irish SME market. This new scheme will also increase the maximum length of guarantees under the CGS from three years to seven years.

Continuing to address all finance-related issues for business will remain a priority for this Government, and further actions will be developed to help Irish businesses to grow and prosper.

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