Noel Coonan (Tipperary North, Fine Gael)
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Question 87: To ask the Minister for Enterprise, Trade and Innovation if he has the authority to introduce the proposed loan guarantee scheme for the small and medium enterprises; and if he will make a statement on the matter. [36446/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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As I previously outlined in my replies to Question Number 1742 on 29 September 2010, Question Numbers 296 and 298 on 30 September 2010, and Question Number 312 on 6 October 2010, my officials are working with their colleagues in the Department of Finance, the Credit Review Office, Enterprise Ireland and Forfás to address access to credit issues for viable SMEs including, the option of a loan guarantee scheme. Substantial progress has been made in identifying the critical elements involved in any further initiatives. However, in developing any further initiatives, it would be important that they would complement, rather than substitute, the main banks' lending commitments and activities under the recapitalisation package and that they would represent value for money from the taxpayer's perspective,

The provision of credit to our enterprise sector, especially SME's, should primarily come from a properly functioning banking sector and any additional initiative on the State's part should not relieve the banks from their obligations in this regard. As indicated already, we are looking at options to address known market failures regarding access to credit for SMEs including a loan guarantee scheme.