Leo Varadkar (Dublin West, Fine Gael)
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Question 66: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to introduce a new short-term credit insurance scheme; and if she will make a statement on the matter. [22078/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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Following the recent receipt from Forfas and my officials of their further analysis into the possible provision of a State supported Export Credit Insurance Scheme and discussions with my Government colleagues, I have instructed my Department to initiate an accelerated tendering process for the purposes of carrying out forensic due diligence on the credit insurance market in Ireland. This due diligence will include an in-depth examination of the client databases of the main credit insurance providers operating in Ireland and will assess whether there is market failure. If market failure is confirmed, the level and nature of any such market failure will be quantified. The due diligence will also assess the costs and impacts of possible intervention of the State in this area.

I would like to stress that while this is a significant and necessary step in the process, it is not a guarantee that any such scheme will be introduced. On completion of due diligence, the matter will be considered again by the Government. Issues such as default risk, exchequer exposure to costs, value for money and the impact of any such scheme on business will be part of the exercise in hand, and will inform any future Government decision on whether to introduce a State-backed top-up export credit insurance scheme.