Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 143: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she is taking to support small businesses in view of the credit crunch; and if she will make a statement on the matter. [44833/08]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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The current financial situation is challenging for SMEs. I have met with the SFA and ISME to discuss a range of issues of concern to the SME sector. A primary concern is access to bank credit. The banking sector is the responsibility of my colleague the Minister for Finance, Mr. Brian Lenihan T.D. My officials and I have been working closely with the Minister and officials of his Department on encouraging the banks to assume their responsibility to provide support to economic development and in particular, to provide credit to SMEs.

The Deputy will no doubt be aware that a number of banks have over the last week, announced significant financial lending packages to assist SMEs. In addition, the European Investment Bank (EIB) has indicated that it is in discussions with four Irish banks in relation to its recently announced €30 billion facility to provide loans to SMEs through commercial banks. I very much welcome these important developments.

My Department and its Agencies will continue to play an important role in working through the current economic situation, and in making sure that we are well positioned to reap the benefits that will undoubtedly arise when the situation improves.

My Department's continuous support for indigenous companies arises through maintaining a positive business environment and through particular interventions from the State development agencies such as Enterprise Ireland, FÁS and the County and City Enterprise Boards. The significant allocations in my Department's Estimates for 2009, will ensure that we continue to build on this strategy for the future.

Enterprise Ireland is the agency with responsibility for supporting the development of Irish companies with ambitions to grow in world markets. Many of its client companies are small to medium in size. Enterprise Ireland recognises the varied challenges facing such companies in the context of the changing economic environment and partners with companies to address their needs in a holistic manner.

In addition to EI, the 35 County and City Enterprise Boards provide support to small businesses or micro-enterprises with 10 employees or less. CEB funding will increase next year by almost €3 million, or 9%, to €34.8 million and this represents a further indication of the Government's commitment to supporting this sector of business.

FÁS through their One Step Up programme is encouraging employees to increase their competency levels and promoting an ethos of lifelong learning in the workplace. Its key intervention in this regard is the Competency Development Programme. It offers workers different types of training programmes directed at various skill levels across major economic sectors. These training programmes are available to employees of SMEs. FÁS also have a number of other training programmes aimed at upskilling SME's namely, Skillnets and FÁS Strategic Alliance programme.

The Government has also made very considerable progress on the implementation of the Small Business Forum Report's recommendations. This progress is reflected through a substantial package of financial measures and schemes introduced to assist the sector over the last two years, including fiscal measures in the 2007 and 2008 Finance Acts.

SMEs are central to our economic development and the range of measures and supports outlined above will continue to help the sector adapt to the current economic climate. These measures will be kept under review to ensure that they remain appropriate to the current circumstances.