Paul Coghlan (Fine Gael) | Oireachtas source

I welcome the Minister of State to the House. I acknowledge his encouragement and enthusiasm for this important role in our economy. I welcome the measures he has rolled out, such as the local enterprise offices , which are very important, as well as the recently established Strategic Banking Corporation of Ireland and the Irish Strategic Investment Fund.

As the Minister of State has said, more than 70% of our workforce are engaged in SMEs. I have been particularly concerned that many SME owners and farmers are refusing to ask questions of their banks when they have been refused credit. We have discovered from the most recent report of John Trethowan, the credit reviewer, that the Credit Review Office has overturned 56% of the banks' decisions to refuse credit. This has meant that €30 million in credit has been released and more than 2,000 jobs have been protected or created. It is noteworthy therefore that only 3% of those refused credit from their banks challenged the decisions. The remaining 97% of applicants walk away disappointed and empty handed. It is vital that this is changed. It is a matter of educating people about it.

While many businesses have taken advantage of the function of the CRO, there are still too many who do not have access to credit and who are unaware of the assistance the CRO can provide. SMEs need to challenge banks' decisions, as on many occasions the banks reverse their decisions. If they do not, the CRO is there to help.

The Government is dedicated to ensuring that credit is made available to SMEs and farmers, as the Minister of State has outlined. Last year the Minister for Finance, Deputy Michael Noonan, increased the limit for loan applications that can be reviewed by the CRO from €500,000 to €3 million. This increase allowed for requests from a broader range of SMEs and also assisted borrowers banking with non-trading banks. More than €800 million of additional credit has been made available to Irish SMEs through the new Strategic Banking Corporation of Ireland, to which the Minister of State referred. I appeal to all farmers and SME owners in need of credit to approach their banks to gain access to these funds. If they are refused, they should ask the reason.

The Minister for Finance also announced in the Budget Statement 2015 that Permanent TSB will shortly participate in the CRO process and Ulster Bank is considering making a similar commitment. We need them involved because we need more competition in banking. It is very important that farmers and business owners are aware of the supports available, and it is vital that they challenge their bank as to why they have been refused access to credit.

I welcome the Minister of State's enthusiasm for this role, which is so vital to the future of the economy. Please God, he will be back again soon.