Pat Rabbitte (Dublin South West, Labour)
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Question 20: To ask the Minister for Enterprise, Trade and Innovation the position regarding his discussions with the main banks to ensure that credit is made available to all businesses and particularly to small and medium sized enterprises; when he last met the banks to discuss these issues; and if he will make a statement on the matter. [45541/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I last met with Bank of Ireland on 8 September 2010 and AIB on 9 November 2010. At both of these meetings the banks confirmed that they were open for business and that they intend to meet their commitments regarding lending to the SME sector as set out in the 2010 recapitalisation package of 30 March 2010. Under this recapitalisation arrangement, 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 must include funds for working capital for businesses.

I have ongoing contact with the main banks in relation to their lending to businesses and will, together with my colleague the Minister for Finance, and John Trethowan of the Credit Review Office, continue to ensure that they meet their lending commitments under the 2010 recapitalisation package in terms of providing sufficient credit to the business sector. In this regard, as part of his Second Quarterly Report on SME Lending published on 18 November 2010, John Trethowan indicated that each of the banks have shown a positive attitude to the Credit Review Office appeals process, and the banks' Executives have been asked to ensure that this attitude is shared with their front-line staff. He also stated that the current market perceptions that banks are not lending to SMEs is based on experiences from six to nine months ago, and the current situation whilst still not entirely perfect, is now continually improving.