Joan Burton (Dublin West, Labour)
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Question 99: To ask the Minister for Finance if Ireland will participate in the joint european resources for micro-to-medium enterprises scheme managed by the European Investment Fund through which a portion of European Regional Development Funds can be allocated to the establishment of holding funds to support small and medium enterprises by improving the ability of SMEs to access finance; the contact, discussions or correspondence that have taken place between the EIF and his Department or other interested parties with respect to this initiative; the reasoning behind the decision to participate or not in the JEREMIE initiative; and if he will make a statement on the matter. [47565/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I refer the Deputy to my response to question number 45359/08 on Thursday 11th December 2008.

The Joint European Resources for Micro to Medium Enterprises (JEREMIE) launched in 2005 is an initiative of the European Commission together with the European Investment Bank (EIB) and the European Investment Fund (EIF) to promote increased access to finance for the development of micro, small and medium-sized enterprises in the regions of the EU.

When Ireland's ERDF Structural Programmes 2007-13 were being developed, my Department in consultation with representatives of the Department of Enterprise, Trade and Employment, Enterprise Ireland, the Southern and Eastern Regional Assembly and the Border, Midland and Western Regional Assembly had a number of discussions with representatives from the EIB on this issue. As part of these discussions JEREMIE was examined in the context of the arrangements then in place to assist SMEs in accessing appropriate financial support. Having reflected on the matter fully and given the nature and structure of JEREMIE, particularly in terms of the scale of operations that would be required to secure EIF participation, it was not considered suited to our Structural Funds programmes.

Following the recent change in global economic circumstances, the EU Commission launched a "European Recovery Plan" on 26th November 2008. As part of the plan, the Commission will be working closely with the EIF to accelerate and expand the existing provisions on financial instruments for small and medium enterprises under JEREMIE. The Commission together with the EIF, EIB and Member States will launch early next year two specific networking platforms as a forum for exchange of information, guidance and good practice. In this context, the Irish Authorities are considering if participation in JEREMIE is appropriate having regard to the ERDF programmes and the potential benefits to the Irish Businesses.