Simon Harris (Wicklow, Fine Gael)
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Question 85: To ask the Minister for Finance if he will clarify if invoice discounting is included in the lending targets to small and medium businesses which banks have agreed with the Government; if he shares the view that this money is essentially simply recycled loans and does not constitute new lending; if he has received any information from State owned banks or part State owned banks on this procedure; the way they account for it in terms of their lending figures; and if he will make a statement on the matter. [15661/12]

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. I can confirm to the Deputy that both banks have achieved their 2011 targets. Invoice discounting is an important form of finance used by SMEs to improve cashflow by releasing funds tied up in outstanding invoices. It is a valuable tool in the financing mix for many SMEs and is a long accepted component in how banks make working capital available to businesses. As such, invoice discounting is part of the lending targets set for the two pillar banks.

The recent Mazars Survey of SME Lending, conducted on behalf of my Department, found that approximately one third of enterprises surveyed reported that it was taking them longer to secure payment for goods and services from their customers. Of those SMEs who requested finance, approximately 4% requested invoice discounting.

I do not share the Deputy's view that this money is essentially simply recycled loans and does not constitute new lending. Invoice discounting is similar to a working capital overdraft facility, but is secured on the actual trade debtors of the business as a means by which SMEs can finance their existing trade, and importantly to assist in the growth of their business. This is especially useful for many businesses which are achieving growth, but are undercapitalised, to prevent them from over-trading i.e. running short of working capital to support their increasing sales.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 86: To ask the Minister for Finance if any of the banks guaranteed by the State have paid the 90% tax levied on bonuses paid to staff; the oversights or controls in place to ensure that the banks do not compensate staff in some other way for the 90% foregone in tax on such bonuses; and if he will make a statement on the matter. [15662/12]

Michael Noonan (Limerick City, Fine Gael)
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Unfortunately, it has not been possible to get the information from the covered institutions in the timeframe allowed by the Question. I will write to the Deputy in the near future with information provided by the institution.