Seán Fleming (Laois-Offaly, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation if he is satisfied that the small and medium enterprise sector is accessing the credit it needs; and if he will make a statement on the matter. [3321/13]

Richard Bruton (Dublin North Central, Fine Gael)
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I am acutely conscious of the extreme problems which SMEs are experiencing with respect to credit. International surveys show demand in Ireland is largely the same as in other EU countries, but refusal rates are highest in Ireland. The data on new credit from the banks is particularly disappointing. We need a transformation in our banks from the old model based on property and commission earning, to a new one based on genuine relationship banking aligned to the needs of an SME sector seeking to break into new foreign markets.

The Government have set the pillar bank lending targets so that they rise incrementally with expected demand, with targets of €4bn in 2013, increased from €3.5bn in 2012. Both banks met the targets for 2012. To ensure information on the demand side is accurate and up to date, the Department of Finance continues to conduct biannual surveys of SMEs to assess credit demand and loan approval rates.

Work on facilitating access to finance will remain a priority in the context of the forthcoming Action Plan for Jobs 2013. As the Deputy will be aware my Department has recently introduced two targeted schemes to support an additional flow of credit into the economy namely the Microenterprise Loan Fund and the Credit Guarantee Scheme. Other initiatives assisting business in this respect include the Development Capital Fund, Innovation Fund and specialist NPRF funds for the SME sector.

My Department is working closely with the Department of Finance and the Credit Review Office to evaluate evidence on credit availability and to ensure that the amount of credit flowing to the SME sector is maximised to facilitate sustainable job creation and retention.

In October 2012, the Government commissioned a review of the Credit Review Office (CRO), in relation to the current operation, functions and supports provided by the CRO to meet the overall objective of determining whether SMEs are getting the support on bank lending they require. Officials are currently looking at how to implement changes to the CRO regime, in line with the recommendations of the report.

An SME Funding Consultation Committee, chaired by the Department of Finance meets regularly to examine the various issues in relation to SME credit, and to identify further actions that can be taken to address the difficulties. Officials from my Department participate on this Committee, and a work programme for 2013 is currently being finalised.

Dessie Ellis (Dublin North West, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation the views of representatives of the small to medium sized enterprise sector regarding his plans to develop LEOs merged with local authorities. [3241/13]

Richard Bruton (Dublin North Central, Fine Gael)
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The micro and small business sector is central to Ireland’s overall economic recovery and future growth. The purpose of restructuring the current model for the delivery of State supports to that sector is to rejuvenate and enhance the national model so as to ensure that the micro and small business sector is properly positioned to be a lead player in relation to job creation and to the economic recovery process.

In conjunction with the launch of the Action Plan for Jobs 2012 a series of seminars were held across the Country at which I met with many representatives of the small business community. I also attended the Advisory Group on Small Business (AGSB), and met subsequently with individual representatives of that Group, all of which afforded me an opportunity to set out my vision for the LEOs and to elicit their views on how the new model should be structured.

In addition, I launched a public consultation process last November to seek as broad a range of views as possible on how the reform the national micro and small business support infrastructure could best be implemented. The closing date for receipt of submissions was originally 19th December 2012 but this was extended to 18th January 2013, because of the level of interest. Over 80 submissions were received and these responses will inform and influence the final shape of the LEOs and the services that the LEOs will provide. While acknowledging that there will be differences of opinion in any fundamental restructuring of Government supports, most submissions received made positive suggestions on how the new infrastructure could best be established. Given the huge response to the consultation it will take some time to review and distil the submissions. All submissions received will be published on my Department’s website in due course.