Luke Flanagan (Roscommon-South Leitrim, Independent)
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Question 19: To ask the Minister for Finance if he will clarify the categories of lending that have been included by AIB and Bank of Ireland in meeting the lending targets of €3.56 bn to small and medium enterprises demanded of them by him; if he will acknowledge that the banks have included farming stocking loans as new lending even though in the vast majority of cases those stocking loans have been in place for decades, and that they are really just a renewal of existing lending; and if he will acknowledge that under Forfas rules for funding, SME's do not include farming. [6197/12]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both have indicated that they have achieved their 2011 targets. The banks have been set an overall target for lending to SMEs including farm lending. The Government is conscious that the agricultural sector, in common with other sectors, needs access to credit. The remit of the Credit Review Office which was established to review decisions of the banks to refuse credit explicitly includes farmers.

All loans to farmers, including farm stocking loans, are included in the agriculture lending returns. Generally speaking, stocking loans are repaid in full and a new stocking loan is applied for the next season so it is appropriate that they are included in lending approvals.

I am informed by Forfás that they do not have rules in relation to SME funding and have not suggested limits on the categories of bank lending.