David Stanton (Cork East, Fine Gael)
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Question 62: To ask the Minister for Enterprise, Trade and Innovation when the credit supply clearing group was established; the number of businesses which have made contact with the group to date; the impact that current availability or lack of availability of credit is having on businesses; and if he will make a statement on the matter. [24424/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Credit Supply Clearing Group was established in May 2009, with bank, business and State representation. The Group is responsible for identifying patterns of events where the flow of credit to viable businesses appears to be blocked and for seeking to identify credit supply solutions relating to these patterns. The Group works to provide a clear picture of any emerging lending patterns while facilitating direct discussion by all the relevant interests in addressing problems.

As part of the ongoing work of the Group, a dedicated e-mail contact point was established in August 2009 to specifically deal with access to bank credit issues. A total of 18 submissions have been received via this contact point. In addition, a small number of cases have also been referred to individual banks on the Group for follow-up action, following representations received.

The Government has taken decisive action in order to get credit flowing again to business. The Bank Guarantee Scheme, the 2009 Recapitalisation Scheme, the nationalisation of Anglo Irish Banks and the establishment of the National Assets Management Agency have all contributed to the stabilisation of the banking sector with a view to facilitating the flow of credit. The 2010 Recapitalisation package builds on earlier initiatives and includes additional supports for enterprises, including SMEs. In particular, AIB and Bank of Ireland have both committed to making available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011.

This funding will be a significant increase on the figures reported by the banks for 2009 and will help to sustain the economy and foster growth.

Outside of the banking sphere, my Department's continuous support for enterprises arises through maintaining a positive business environment and through particular interventions from the State development agencies such as Enterprise Ireland, and the County and City Enterprise Boards. The significant allocations in my Department's Estimates for 2010 for the development agencies ensures that we can continue to build on this strategy for the future.

The Government has also introduced formal arrangements to reduce the payment period by central Government Departments to their business suppliers from 30 to 15 calendar days. This commitment has effect on all valid invoices received on and from 15 June 2009 and is helping to ease cash flow difficulties for SMEs.

SMEs are central to our economic development and the range of measures and supports in place will be kept under review to ensure that they continue to help the sector adapt to the current economic climate. The performance of the recapitalised banks in providing credit to businesses will also be monitored in order to ensure that they meet their commitments.