Richard Bruton (Dublin North Central, Fine Gael)
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Question 168: To ask the Minister for Finance the information he has received from the Central Bank on the state of the flow of lending to small businesses; and the monthly statistics for the volume of outstanding credit and the flow of new credit to small businesses under different lending categories. [43849/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Officials from my Department, the Department of Enterprise Trade and Employment, the Central Bank and the Financial Regulator are in continuous contact with the banks regarding the flow of lending to small business.

At this stage, the Irish results of the Euro Area Bank Lending Survey for October show tightening credit standards for SMEs, somewhat higher costs, especially for riskier loans, and an increased requirement for security (including personal guarantees). The Lending Survey data also point to a decreased demand for loans. This fall in demand was primarily due to a fall in the need to finance fixed investment. Demand for finance inventories and working capital was only marginally lower.

The Central Bank's October Monthly Statistics showed that lending to the Irish economy was essentially flat in October and this is a matter of concern. However, we should be cautious about drawing strong conclusions from one month's data. Forfas/Enterprise Ireland are surveying 200 clients or County Enterprise Boards and Enterprise Ireland in order to gather more detailed information.

Furthermore, as the Deputy will be aware, at my meetings with certain financial institutions last week, I asked those institutions covered by the Government's guarantee Scheme to consider the contribution that they can make to the economy through appropriate credit initiatives in relation to small and medium sized businesses and otherwise. I have, therefore, welcomed the fact that certain institutions are already considering or have announced initiatives in this regard.

The Deputy may also wish to be aware that I recently met Mr Plutarchos Sakellaris, Vice-President of the European Investment Bank, which recently announced that it was providing additional funding through its lending facility for SMEs in the European Union. Mr Sakellaris confirmed that the Bank has been in discussion with a number of Irish financial institutions about participating in this facility for SMEs and that the EIB hopes that agreements to provide such loan facilities can be finalised as soon as possible. I have urged Irish banks to utilise the facility to the maximum extent possible with a view to making the additional funding available to SMEs as soon as possible.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 169: To ask the Minister for Finance if he has instructed the Central Bank to monitor changes in the conditions of loans being imposed on small business borrowers in order that an accurate picture of lending conditions can be compiled; and if he plans to require banks to give minimum notice periods to its customers of intentions to change such conditions. [43850/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Nobody wants a situation where viable businesses fail because banks will not lend them money. However we need to be sure that difficulties in accessing credit by business reflect an overly restrictive approach by banks rather then the impact of the economic recession on creditworthiness.

At this stage, the Irish results of the Euro Area Bank Lending Survey for October show tightening credit standards for SMEs, somewhat higher costs, especially for riskier loans, and an increased requirement for security (including personal guarantees). The Lending Survey data also point to a decreased demand for loans. This fall in demand was primarily due to a fall in the need to finance fixed investment. Demand for finance inventories and working capital was only marginally lower.

Forfas/Enterprise Ireland are surveying 200 clients or County Enterprise Boards and Enterprise Ireland in order to gather more detailed information.

As the Deputy will be aware, at my meetings with certain financial institutions last week, I asked those institutions covered by the Government's guarantee Scheme to consider the contribution that they can make to the economy through appropriate credit initiatives in relation to small and medium sized businesses and otherwise. I have, therefore, welcomed the fact that certain institutions are already considering or have announced initiatives in this regard.

The Deputy may also wish to be aware that I recently met Mr Plutarchos Sakellaris, Vice-President of the European Investment Bank, which recently announced that it was providing additional funding through its lending facility for SMEs in the European Union. Mr Sakellaris confirmed that the Bank has been in discussion with a number of Irish financial institutions about participating in this facility for SMEs and that the EIB hopes that agreements to provide such loan facilities can be finalised as soon as possible. I have urged Irish banks to utilise the facility to the maximum extent possible with a view to making the additional funding available to SMEs as soon as possible.

Finally, I can inform the Deputy that the Financial Regulator Consumer Protection Code requires firms to act honestly and fairly in the best interests of their consumers and also that if they intend to amend or alter the range of services offered they must give consumers at least 30 days' notice. The Code states:

"A regulated entity must, where applicable:

a) provide the consumer with details of all charges, including third party charges, which the regulated entity will pass on to the consumer, prior to providing a service to the consumer and where such charges cannot be ascertained in advance, the regulated entity must advise the consumer that such charges will be levied as part of the transaction;

b) advise affected consumers of increases in charges, or the introduction of any new charges, at least 30 days before the change takes effect;

c) detail in each statement provided to the consumer, all charges applied during the period covered by that statement; and

d) where charges are accumulated and applied periodically to accounts, advise consumers at least 10 business days before deduction of charges and give each consumer a breakdown of such charges."

Richard Bruton (Dublin North Central, Fine Gael)
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Question 170: To ask the Minister for Finance the conditions which have been included in the individual agreements with banks under the scheme for the deposit guarantee to secure a continuing flow of credit to small businesses. [43851/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The objective of the Credit Institutions (Financial Support) Scheme is to maintain financial stability in the best interests of the public and the economy of the State. To that end, the Scheme provides for the regulation of the commercial conduct of covered institutions and, in particular, requires each covered institution to appropriately manage its balance sheet in a manner consistent with the overall purposes of the Credit Institutions (Financial Support) Act. While individual agreements with covered institutions, as provided for in paragraph 6 of the Scheme, are confidential, each individual agreement complies fully with all the relevant requirements and overall objectives of the Scheme.

Furthermore, as the Deputy will be aware, at my meetings with certain financial institutions last week, I asked those institutions covered by the Government's guarantee Scheme to consider the contribution that they can make to the economy through appropriate credit initiatives in relation to small and medium sized businesses and otherwise. I have, therefore, welcomed the fact that certain institutions are already considering or have announced initiatives in this regard.

The Deputy may also wish to be aware that I recently met Mr Plutarchos Sakellaris, Vice-President of the European Investment Bank, which recently announced that it was providing additional funding through its lending facility for SMEs in the European Union. Mr Sakellaris confirmed that the Bank has been in discussion with a number of Irish financial institutions about participating in this facility for SMEs and that the EIB hopes that agreements to provide such loan facilities can be finalised as soon as possible. I have urged Irish banks to utilise the facility to the maximum extent possible with a view to making the additional funding available to SMEs as soon as possible.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 171: To ask the Minister for Finance the procedure which is being used to draw up potential names for public interest directors of the banks; if he will reveal the list before discussions begin with the banks regarding appointments; and when he will complete the process. [43852/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Scheme states that in order to promote the public interest, a covered institution will, at the direction of the Minister for Finance, take all reasonable steps to appoint at least one but no more than two non-executive directors to its board from a panel approved by the Minister during the period of the guarantee. I expect to announce the panel Directors for the covered institutions this week and Deputies will be informed in due course.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 172: To ask the Minister for Finance the findings of the PricewaterhouseCoopers report on the Irish banks; and the aggregate data across all banks for loans likely to default, loans requiring intensive care and so on. [43853/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy will appreciate that this review is detailed commercially sensitive and accordingly my Department will not be publishing the results of the PWC work.