David Stanton (Cork East, Fine Gael)
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Question 75: To ask the Tánaiste and Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 67 of 1 April 2009, if the review of the export credit insurance market carried out by Forfás and Enterprise Ireland has been completed; if the findings have been brought before Government for discussions; the action she will take as a result; and if she will make a statement on the matter. [19970/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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Due to recent difficulties being experienced by some companies seeking Export Credit Insurance, I asked Forfas and Enterprise Ireland, working with my Department, to undertake an analysis of the issue, as outlined in my reply to the earlier Parliamentary Question that was referred to by the Deputy.

The preliminary analysis which was conducted was considered by the Cabinet Sub Committee on Economic Renewal last month. The Committee decided that a State Export Credit Insurance Scheme, as sought by business and exporting interests, may not be the best solution to the current difficulties being experienced by many companies. The Cabinet Committee agreed that the difficulties in obtaining commercial export credit insurance are closely related to the wider problem of credit availability for business generally. This latter issue is being pursued as part of the Review of Bank Lending, being undertaken (with assistance from Mazars consultants) as part of the banks recapitalisation programme, and the issue of trade finance is also covered by the terms of reference. I understand from my colleague, the Minister for Finance, that this review is due to be finalised by the end of June.

Nevertheless, in light of further pressures on business and exporters, along with the fact that other Member States (notably Luxembourg, the UK and Denmark) have recently taken steps to introduce short-term State-backed credit insurance schemes, I have now requested that the subject of export credit insurance be further examined. Forfás, in conjunction with Enterprise Ireland and my Department, are in discussion with the three principal operators in the export credit insurance business, and are currently working to assess further options. These options are to be presented to me as a matter of urgency and I intend to then bring the matter back to the Cabinet Committee for further consideration, within the next two weeks. Issues such as default risk, exchequer exposure to costs and the impact of any such scheme on business would be part of that assessment.