Michael McGrath (Cork South Central, Fianna Fail)
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20. To ask the Minister for Jobs, Enterprise and Innovation the way he believes funding from the European Investment Bank can be further leveraged to support job creation here; and if he will make a statement on the matter. [2967/14]

Richard Bruton (Dublin North Central, Fine Gael)
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Policy responsibility for leveraging funding from the European Investment Bank (EIB) rests with my colleague the Minister for Finance.

However, since Mr Werner Hoyer’s appointment as President of the EIB in 2012, there has been increased engagement between Departments, Agencies and Financial Intermediaries and the Bank. A joint Irish EIB High Level Working Group (HLWG) was established to identify concrete and flexible mechanisms to enhance the Bank’s support for Ireland’s growth agenda. The EIB and Ireland are strongly committed to working together to enhance the Bank’s activity in the country and this commitment is beginning to bear results with increase contacts at many levels.

Total funding, by the EIB Group to Irish projects in 2013 was €1.193 billion, representing a 21% increase on 2012 levels, including funding for SMEs in the form of €200 million in loans to AIB targeted specifically at SMEs.

In addition to securing a higher level of funding for Irish projects in 2013 than in 2012, funding went to a larger number and broader range of projects than in previous years including infrastructure projects, with loans to the University of Limerick, the Grangegorman PPP, Irish Schools Programme, the Dublin Cross City Luas Project and the N11/N7 Motorway. EIB support has also been secured in the renewable energy sector including a loan to AIB for small to medium renewable energy projects in Ireland; the Bord Gáis Onshore Wind Programme, which consists of the construction and operation of six onshore wind farms located in Ireland, and the ESB Renewable Connection. Moreover, there was specific support for micro and small and medium enterprises (SMEs) in the form of a loan to AIB for €100m. Furthermore, the European Investment Fund (EIF) has supported the recently announced Development Capital Scheme in Ireland and has continued its support for the Microenterprise Loan Fund managed by Microfinance Ireland.

Close engagement between Ireland and the EIB will continue in 2014 with a number of proposals being discussed between the Department of Finance, the Department of Jobs, Enterprise and Innovation and the EIB for further support of Ireland’s growth agenda. For example, as announced in Budget 2014, given the importance of the export sector to sustainable economic growth and employment, officials from my Department and Enterprise Ireland, as well as well as the Department of Finance, are in discussions with the EIB on the feasibility of an EIB-supported trade finance initiative which would proactively support Irish exporters in growing their businesses abroad. Work in support of this will feature in the Action Plan for Jobs 2014.

The EIB support for Ireland’s growth agenda will contribute to job creation and will complement this Government’s drive for job creation through the Action Plan for Jobs in the coming year.