Tom Fleming (Kerry South, Independent)
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291. To ask the Minister for Finance if he is satisfied that the banks are making adequate credit available to small and medium-sized businesses; the amount which was made available in 2012 and to date in 2013. [35270/13]

Michael Noonan (Limerick City, Fine Gael)
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Access to finance for SMEs is a key aspect of the Action Plan for Jobs 2013. It is the Government's vision that all viable businesses operating in Ireland should have the opportunity to access sufficient finance to meet their enterprise needs in a manner that supports growth and employment in the economy. The Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion last year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks have achieved their 2011 and 2012 targets and the recent Credit Review Office (CRO) report commented “At the end of quarter 1, both banks' sanctions are on or near where they would be expected to meet the target, taking account of the seasonality which has been identified over the past two years.”

The pillar banks are expected to lend to viable businesses both for investment and working capital purposes. The CRO is available to assist businesses which have been refused credit. The recent CRO report shows that the Office upheld the credit appeal in 135 cases or 57% of cases decided. The upheld appeals have resulted in €16.8m credit being made available to SMEs and farms, protecting 1,297 jobs. This shows that there is a strong prospect of success for SMEs going to the CRO and I would strongly encourage SMEs refused credit to seek a review by the Office.

The latest data provided by the Central Bank indicates that the drawdown of new lending by non-financial SMEs from credit institutions in Ireland was €587m in the first quarter of 2013. Figures for the equivalent period in 2012 show drawdowns of €579m. Figures for the full year 2012 show drawdowns of €2.56bn.

For the Deputy's information, the relevant statistics for credit made available to small business are accessible at: