John Perry (Sligo-North Leitrim, Fine Gael)
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Question 72: To ask the Minister for Enterprise; Trade and Innovation when he intends to publish Your Business Your Bank; the reason the publication has been delayed; and if he will make a statement on the matter. [36684/10]

Billy Kelleher (Cork North Central, Fianna Fail)
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"Your Business Your Bank" is a draft document prepared through the work of the credit supply clearing group. The document is aimed at bank business customers and seeks to bring greater clarity to the current realities of funding business and how business customers can best position their businesses to secure the funding they need. The text of the document is currently being finalised and it should be possible to have the document published in the coming weeks.

Other initiatives have been already introduced to assist businesses in their relationships with banks. With the establishment earlier this year of the Credit Review Office under John Trethowan, small and medium-sized enterprises, SMEs, being refused bank credit have access to a formal mechanism for reviewing their cases. This is in addition to the banks' own internal appeals mechanisms which have been formalised and strengthened.

The code of conduct for business lending to SMEs introduced last year by the Financial Regulator under the provisions of the Central Bank Act 1989 sets out the processes banks are required to adopt in facilitating access to credit for businesses. The code also promotes fairness and transparency in the treatment of SMEs by the banks.

As the Minister, Deputy Batt O'Keeffe, noted, under the 2010 bank recapitalisation arrangement AIB and Bank of Ireland have both committed to making available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. This must include funds for working capital for businesses. The Credit Review Office is closely monitoring the lending policies of AIB and Bank of Ireland lending policies and their lending commitments in 2010 and 2011, thus ensuring that viable SME business customers get access to credit.

John Perry (Sligo-North Leitrim, Fine Gael)
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I thank the Minister of State for his reply. The document, Your Business Your Bank, clearly is an indictment of the Government's attitude towards business when one considers there will have been up to 1,500 insolvencies by the end of this year and that every closure has a great impact on business. The three critical supports for business are, first, the Government has bailed out the banks, second, one would assume that banks would invest in small companies and, third, small companies in turn would retain jobs. Unfortunately, difficulties are being encountered by all families in every situation. I also listened to the Minister, Deputy Batt O'Keeffe, with regard to the commitment given by the banks. However, I refer to the costs associated with drawing down a loan at present. Although the banks may sanction loans, they are placing caveats, legal charges and stipulations on them with the result that even though such loans are being granted, many businesses are unable to draw down the money. The Minister of State should outline to Members what he intends to do about the banks' failure to facilitate businesses on the ground, despite committing the aforementioned billions of euro. People are not getting working capital and viable businesses are closing.

Brendan Howlin (Wexford, Labour)
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I will call the Deputy again. An tAire, to respond.

Billy Kelleher (Cork North Central, Fianna Fail)
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First, on the substance of the question pertaining to the draft document, Your Business Your Bank, I repeat this comprehensive document will be published soon. I believe it will assist businesses when they prepare applications for loans from banks. As for the broader debate on credit availability to small and medium-sized businesses, the Government acknowledged and realised some time ago that there would be difficulties in the context of credit availability to small and medium-sized businesses. That is the reason that on 29 September 2008, the Government took a very difficult and brave decision to ensure there at least would be a functioning banking system that could make available the infrastructure to permit lending to small and medium-sized businesses.

Kieran O'Donnell (Limerick East, Fine Gael)
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Does the Minister of State include Anglo Irish Bank in that?

Billy Kelleher (Cork North Central, Fianna Fail)
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While the Government received support from some parties which are responsible, other parties obviously shirked their responsibility and decided to be populist.

Willie Penrose (Longford-Westmeath, Labour)
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The Labour Party was proven right €50 billion later.

Kieran O'Donnell (Limerick East, Fine Gael)
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That comes to €35 billion that never will be seen again.

Billy Kelleher (Cork North Central, Fianna Fail)
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That said, the small and medium-sized sector is struggling to access credit.

Arthur Morgan (Louth, Sinn Fein)
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The Minister of State got that right.

Billy Kelleher (Cork North Central, Fianna Fail)
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One must be also conscious that some small and medium-sized businesses are not viable and will not be able to draw down credit, regardless of whether times are good or bad.

Willie Penrose (Longford-Westmeath, Labour)
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The Government saved the casino gamblers.

Brendan Howlin (Wexford, Labour)
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Allow the Minister of State to reply.

Billy Kelleher (Cork North Central, Fianna Fail)
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However, a cohort of small and medium-sized businesses exists that must be supported by the banks. Since 2008 and in the context of the subsequent recapitalisation, the Government has put in place systems to first ensure there is access to credit and that if businesses are refused credit, an independent appeals mechanism exists under which they can appeal to the Credit Review Office. This is something businesses should take up and this document also will encourage people to make applications in writing.

Brendan Howlin (Wexford, Labour)
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I will allow a further supplementary question from Deputy Perry.

John Perry (Sligo-North Leitrim, Fine Gael)
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This is not good enough because the document, Your Business Your Bank, should be the first publication with regard to the criteria for drawing down funds. Credit is not available. The Minister of State should speak to Mr. John Trethowan of the Credit Review Office, who would tell him about the difficulties with banks at present. It is not a case of giving credit to non-viable businesses. This is about the sustainability of viable businesses that are being closed at present. Cash is not being made available to viable businesses on the ground, regardless of the commitment made by the State-guaranteed Allied Irish Banks and Bank of Ireland. I again refer to the three supports for business. Does the Minister of State not agree that as the Government has bailed out the banks, one would assume the banks would invest in business and that therefore, the third tier should be the retention of jobs but that this is not happening?

Billy Kelleher (Cork North Central, Fianna Fail)
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Briefly, Mr. Trethowan stated clearly recently that credit availability to the small and medium-sized sector was freeing up. In addition, a report produced by a business representative organisation, namely, ISME, states that matters are improving on the ground. Two issues arise in this regard. First, some businesses are not viable and will not be able to access credit. Unfortunately, this difficulty arises because of the contraction in the economy in 2009 in particular and the challenges that remain. However, viable businesses exist and when such businesses make an application but are refused, they will use the independent appeals mechanism. However, to suggest that no freeing up of credit is taking place is simply wrong and there is an acknowledgement among the people-----

John Perry (Sligo-North Leitrim, Fine Gael)
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The Minister of State should talk to business people and they will tell him.

Brendan Howlin (Wexford, Labour)
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Allow the Minister of State to conclude.

Billy Kelleher (Cork North Central, Fianna Fail)
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It is important to note that the people whose function it is to monitor whether access to credit is freeing up or otherwise have discerned an improvement. While there is some way to go, the Government is ensuring that this issue will be monitored continuously.