Niall Collins (Limerick West, Fianna Fail)
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Question 111: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding export credit insurance; and if she will make a statement on the matter. [12980/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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It is recognised that there has been some withdrawal and reduction of export credit insurance cover for business, by the commercial insurance companies, in recent months. In relation to the possible introduction of a State Export Credit Insurance scheme, as a response to this situation I recently requested that a review of the export credit insurance market be carried out by Forfas and Enterprise Ireland. This report has just been finalised and I will be bringing its findings to Government shortly for discussion.

Having regard to the continued concerns of the business community in relation to the issue of credit generally, an independent study on credit availability has been commissioned by the Department of Finance, as part of the bank recapitalisation programme. I understand that this study, which will also address the issue of credit insurance and trade finance generally, is due to be completed shortly. In light of the findings of the two studies mentioned above, the Government will be considering the facts and possible policy responses to these particular issues within the next few weeks. It should be appreciated that any intervention by the state in the area of trade finance must have regard to its effectiveness and tangible benefits for exporters and businesses generally, in light of potential significant additional costs and financial exposure to the exchequer.