Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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To ask the Minister for Finance his plans to support and encourage legitimate tax paying businesses; and if he will make a statement on the matter. [45443/12]

Michael Noonan (Limerick City, Fine Gael)
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I am well aware of the challenges facing all businesses in the current economic climate. My Department is just one of many who are working to support and encourage business in Ireland, and the following are some examples of how this is being done. Access to credit is widely regarded as one of the biggest challenges facing businesses in Ireland at present. The Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks achieved their 2011 targets and I would be confident of them achieving the more challenging target this year. In terms of rejection rates from banks, the Credit Review Office (‘CRO’) can review decisions by the pillar banks to refuse, reduce or withdraw credit facilities, including applications for restructured credit facilities, from €1,000 up to €500,000. The CRO is overturning 55% of the refusal decisions referred to them.

My Department also introduced the Microenterprise Loan Fund Act this year and the fund commenced business on 1st October. This provides for a scheme which will facilitate up to €40 million in additional lending to microenterprises over the next five years. Furthermore, the Government is in the process of facilitating up to €150m per annum of additional credit through the Temporary Partial Credit Guarantee Scheme, designed for small and medium enterprises who, because of lack of collateral or because of the specialised sector they operate in, face difficulties in accessing bank credit.

Further, the Department of Jobs Enterprise and Innovation have taken the lead on a number of measures, including the transposition of Directive 2011/7/EC which has the purpose of establishing a clear legal obligation regarding the timing of payments from debtors. This mechanism is to improve cashflow for businesses and is deemed to be particularly useful for small businesses.

Aside from incentives to support and encourage businesses, there are a number of measures in place to ensure tax compliance for all businesses. I am advised by the Revenue Commissioners that their tax compliance programmes are under constant review to ensure that they are focused on ensuring tax compliance. The Deputy will be aware of the continuing strengthening of legislation to provide for a robust framework within which the Revenue Commissioners may tackle tax evasion.

In terms of upcoming plans, it is not appropriate to discuss any measures which could form part of Budget 2013, but all of theses issues will feed into our considerations.