Written answers

Thursday, 21 March 2013

Department of Finance

Presidential Reports

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance if he received a copy of the Being Young and Irish – Take Charge of Change report from the Office of the President, Áras an Uachtaráin as part of President Higgins series of seminars with young persons here which took place in Dublin, Galway, Monaghan and Cork in 2012; if he has noted the Take Charge of Change declaration made by the participants; the steps he has taken arising out of the report’s findings in order to achieve young person’s vision for Ireland; and if he will make a statement on the matter. [14530/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I can confirm I received a copy of the Being Young and Irish-Take Charge of Change report from the Office of the President. I was very impressed by this report as I am a firm believer in the importance of projects which involve Ireland’s youth. I would like to commend President Higgins on this wonderful initiative. I have taken note of the nine most prominent areas of concern to young people today in this report namely: Employment, Enterprise, Social Security, Concern with Economy, Political reform, Education, Equality, Involve young people, Be positive, Health, Community and civil society, Identity as Irish.

From a Department of Finance point of view we are actively taking steps in relation to the first issue i.e. to improve employment growth. As the Deputy is aware Ireland’s youth unemployment rate is unacceptably high. In an effort to reduce this figure (along with Ireland’s overall unemployment rate) we are driving cross Government initiatives as outlined in the 2013 Action Plan for Jobs.

From my Department’s perspective, the material related to Access to Finance is of particular importance. SME’s will be a key driver of growth and job creation across the country and access to credit and financing is essential for them to trade, to grow and to create jobs. Through intensive engagement with SMEs and the banks we have identified a range of measures that tackle the challenges related to SME credit.

By end 2013, new Government schemes totalling almost €2.5 billion in new lending to business will be in place: €850 million of the National Pension Reserve Fund for the SME sector, €700 million seed and venture capital scheme, €450 million credit guarantee scheme, €225 million development capital scheme, €120 million second call under Innovation Fund Ireland, €90 million microfinance scheme.

Furthermore, the plan put in place new structures to better monitor bank lending to business: €4 billion in lending to businesses by each of the pillar banks (AIB & BoI), extra staff for the Credit Review Office, which overturns over half of the bank refusal decisions which are appealed to it, more comprehensive progress reports on SME lending by banks to my Department. I have asked one of the public interest directors in each of the pillar banks to have specific reporting responsibility on SME lending. As part of Budget 2013, I announced a 10 point plan for SMEs which includes several measures aimed at improving their credit situation.

Businesses also need greater choice in sourcing finance, and should be able to rely, not only on conventional loans from banks, but on other, often non-bank funding sources. My officials are using the opportunity of the Irish Presidency to actively investigate non-bank funding sources with our European colleagues and I have put this issue on the Agenda for the informal Ecofin that will take place in Dublin in April.

In addition to targeting improvements in credit conditions, my Department is also actively involved in assisting job growth through initiatives in the Construction, Agri-Food, Financial Services, Tourism and Aviation sectors. All of these initiatives will support job creation and offer opportunities for young people seeking employment.

On Thursday, 7 March, the Department of Finance published its Review of 2012. In this review there are numerous references to initiatives which my Department has driven. Goal 1 from our Statement of Strategy aims at providing ‘A resilient Irish economy founded on sustainable and balanced growth and leading to significant increases in employment numbers’. Section 4 in the review looks solely at the measures taken in relation to this goal.

Link to Annual Review 2012

Comments

No comments

Log in or join to post a public comment.