Chris Andrews (Dublin South East, Fianna Fail)
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Question 179: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the European Union support schemes (details supplied) that are currently being accessed by Irish financial institutions; and the reason they may not be currently accessed here. [32949/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The decision of any eligible Irish undertaking, including financial institutions, to make an application under any particular EU scheme would be a commercial matter for the institution involved. Applications are between the undertaking involved and the relevant EU institution providing support. The Irish Authorities would not necessarily be made aware of individual applications made to EU support schemes which allow for direct applications.

Irish banks have benefited from the European Investment Banks (EIB) loans for SMEs. In 2009, the EIB made €300m available to Bank of Ireland, Allied Irish Banks and Ulster Bank for onward lending to SMEs carrying out investment projects. This was additional to €50m previously made available to Bank Of Scotland Ireland through its UK parent.

The Competitiveness and Innovation Framework Programme 2007-2013 (CIP) contains a financial instrument, the SME Guarantee Facility that aims to improve the financial environment for SMEs by facilitating their access to debt and equity finance, through financial intermediaries. The SME Guarantee Facility is operated by the European Investment Fund (EIF) on behalf of the European Commission. Irish financial intermediaries are free to make contact directly with the EIF concerning participation in the facility. I am aware that some have done so. My Department has informed the Irish Bankers' Federation of the facility, the operation and the scope of the arrangement and has made itself available to any bank interested in pursuing the possibility of securing funding under the SME Guarantee in terms of facilitating contacts with relevant officials in the European Investment Fund (EIF) and/or the European Commission, for further advice and assistance.

The Enterprise and Industry Grants Work Programme is an annual listing of the various programmes run by the European Commission's Directorate General for Enterprise and Industry and grant programmes, including for example the CIP, linked to it. The CIP Information Communication Technologies Policy Support Programme (ICT PSP) aims to stimulate innovation and competitiveness and accelerate the development of a sustainable, competitive, innovative and inclusive information society. It supports activities to accelerate innovation and implementation of ICT based services and systems through the wider uptake and best use of ICT and the exploitation of digital content by citizens, governments and businesses. As such it is not a mechanism for providing funding to the financial institutions. The Community Enterprise Centre (CEC) Scheme, administered by Enterprise Ireland, is not financially supported by EU funds and was never designed to be accessible by financial institutions. The IDABC Programme (Interoperable Delivery of European eGovernment Services to Public Administrations, Businesses and Citizens) is primarily to encourage interoperabiliy around eGovernment programmes in the Member States. It would not be relevant to financial institutions.

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 and the European Investment Fund in order 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 Finance, Enterprise Ireland, the Southern and Eastern Regional Assembly and Border, Midland and Western Regional Assembly had a number of discussions with representatives from the EIB on this issue. As part of these discussions the JEREMIE programme was examined in the context of the existing arrangements in place to assist SMEs in accessing appropriate financial support. Having reflected on the matter fully and given the nature and structure of the JEREMIE programme, 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.

While, participation by the financial institutions in any EU programme is a commercial decision for the institution concerned, nevertheless I would urge financial institutions to make use of EU funding opportunities where these are appropriate to the institution and of benefit to Irish businesses. For its part, the State will continue to consider participation in appropriate programmes.