Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Transport, Tourism and Sport the extent to which he has continuous dialogue with the hotel and catering sectors with a view to identifying the issues most commonly regarded as impacting positively or negatively on the industry at the present time; if bank lending or credit has been a feature of any such discussions; the degree to which he has had discussions with the banking sector in this regard; and if he will make a statement on the matter. [57659/12]

Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Transport, Tourism and Sport the extent to which he has investigated the effect of debt on the hotel, catering and consequently the tourism sector over the past two years; the degree to which provision has been made to address any such issues; and if he will make a statement on the matter. [57660/12]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 365 and 366 together.

I am in regular contact with stakeholders in the tourism industry and indeed I met, at their request, with the Irish Hotels Federation (IHF) most recently just prior to the Budget and the issues of bank lending and credit as well as the existing hotel debt burden were discussed.

The issue of credit availability is primarily a matter for the Minister for Finance. I am informed by him that the Government has imposed SME lending targets on the two domestic pillar banks and the banks meet with the Department of Finance and the Credit Review Office (CRO) on a quarterly basis to discuss progress and address any issues arising.  The Government has also introduced the Microenterprise Loan Fund Act which provides for a scheme to facilitate additional lending to microenterprises over the next five years. Furthermore, the Government is in the process of facilitating up to €150 million per annum of additional credit through the Temporary Partial Credit Guarantee Scheme, designed for SMEs who, because of lack of collateral or because of the specialised sector they operate in, face difficulties in accessing bank credit.

In relation to the issue of debt burden on the sector, I have examined and discussed with the IHF their recent report on this matter, including their proposals to address the issue.  The proposals all fall to be considered by the Department of Finance and the Department of Public Expenditure and Reform and in that regard, following on from the Budget, I have signalled my intention to have further discussions with the Minister for Finance on the possible involvement of hotels in the extended Employment and Investment Incentive Scheme (EIIS) and the Real Estate Investment Trust (REIT) initiative.