Dara Calleary (Mayo, Fianna Fail)
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1. To ask the Minister for Jobs, Enterprise and Innovation the reason there are no specific actions in the Action Plan for Jobs to deal with the high corporate debt burden which the action plan identifies as a drag on growth and employment; and if he will make a statement on the matter. [6098/15]

Dara Calleary (Mayo, Fianna Fail)
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The Action Plan for Jobs has identified high corporate debt burden as a significant risk to economic growth and, in consequence, to job creation. There are no specific actions outlined in the action plan and I want to pursue the Minister's thoughts on this area.

Richard Bruton (Dublin North Central, Fine Gael)
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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.

Dara Calleary (Mayo, Fianna Fail)
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The last item the Minister mentioned sounds like a worthy scheme. In cases of which I have been made aware, one of the main banks - not a pillar bank - is actively exiting the SME market and trying to sell loans off to various venture or vulture funds. The pillar banks have put facilities in place, but the bank that is exiting the SME market will not accept them. Will the Minister's proposals assist companies that are viable? The two companies I am dealing with, each employing 50 people, face the sale of their bank loans to someone they do not know.

When will the Minister for Finance publish targets for the restructuring of SME debt? They should be published every quarter so that we can see how banks are doing, in the same way as for the mortgage market.

Richard Bruton (Dublin North Central, Fine Gael)
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It is precisely as the Deputy outlines. The idea is that the terms of the credit guarantee scheme, which provides a guarantee of up to 75% on the tranche of the loan covered by the guarantee, will change to 80% in the new revision. This will allow the guarantee to be used as an instrument to support businesses in cases in which their bank is exiting. It is to deal with this sort of circumstances the Deputy is dealing with. We are working to introduce that in the Dáil as quickly as possible.

The Minister for Finance has answered questions on the targets. The Central Bank sets those targets. It has reported that they are on track. There is relevant information in the banks' annual reports, which the Deputy could read. The Central Bank certainly sees the setting of targets as an important aspect of helping distressed SME borrowers into a long-term sustainable position. I do not have the details on when the additional targets will be published.

Dara Calleary (Mayo, Fianna Fail)
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The credit guarantee scheme and its revision have been announced as often as I have had hot breakfasts. Will it be done this session? Will it be done before Easter? The scheme was identified as flawed in October 2013, when the Department reviewed it. The new element the Minister has introduced this morning is absolutely vital and urgent because the bank I am referring to, which is one of the main players, is actively putting loans on the market. People need protection.

The Minister and the Government are sleepwalking while many small businesses are being destroyed by legacy debt. They are willing to face up to it and enter into a package. The two pillar banks are putting facilities in place, but while we await a solution exactly as the Minister has outlined, our hands are tied and we can do nothing. Debts are being sold week by week and the scheme will be too late. Will the revised credit guarantee scheme with this new element be introduced before the Easter recess?

Richard Bruton (Dublin North Central, Fine Gael)
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There is no question of the Government sleepwalking. Every year we introduce a new initiative. This year the Strategic Banking Corporation of Ireland will provide new access to €800 million of credit for SMEs. We have extended the mandate of the Credit Review Office every year, so it now deals with loans of up to €3 million. Reviewing a guarantee is complex legislation because it involves the taxpayer underwriting commitments entered into by others. There are delicate legal issues that must be dealt with in introducing such legislation. We are making sure we get it right. I assure the Deputy that we are dealing with this as a matter of extreme urgency.