Dara Calleary (Mayo, Fianna Fail)
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Question 224: To ask the Minister for Enterprise, Trade and Innovation the 2011 budget for the proposed temporary partial credit guarantee scheme as announced by him on 10 May; his plan for the implementation of such a scheme; and if he has the agreement of the Department of Finance for such a scheme. [11635/11]

Richard Bruton (Dublin North Central, Fine Gael)
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As part of the Jobs Initiative announced in this House last Tuesday, 10th May, both the Minister for Finance and I confirmed the Government commitment to initiating a tendering process for the development of a temporary, partial credit guarantee scheme.

The design of the scheme will draw from international experience to support new lending that would not otherwise have been extended by the banks. In this way, the scheme will complement, rather than be a substitute for, existing lending activities by the main financial institutions. It will be designed to encourage banks to lend to new or expanding commercially viable SMEs so that they can grow their company, develop new products of expand in to new markets.

The Government's commitment will be for an initial period of one year. Specific performance criteria will be set down that allow for review and revision of the scheme at the end of that initial period before committing to a roll-over of the scheme for subsequent years. There will be a modest, and known, level of exposure to the taxpayer when the scheme is launched but there will be a significant positive knock-on benefit to the economy in terms of job creation, welfare savings and returns to the Exchequer by way of tax revenue generated.

Any costs arising in 2011 will be minimal and associated with the design and set up of the scheme which is due to be in place by the autumn.