Bernard Durkan (Kildare North, Fine Gael)
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266. To ask the Minister for Finance the extent to which lending institutions are encouraged to offer facilities to small and medium enterprises in line with the requirements of the sector; and if he will make a statement on the matter. [25125/15]

Michael Noonan (Limerick City, Fine Gael)
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This Government recognises that small businesses play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit facilities from a diverse range of bank and non-bank sources.

Having completed a process of deleveraging, both AIB and Bank of Ireland are now concentrating on growing their balance sheets.In this context, both banks recognise the need to increase business lending in the period up to 2016, including lending to the SME sector.  My Department collates and examines, on a monthly basis, granular data on the funding of the activities of SMEs from both AIB and Bank of Ireland, the wider banking sector and increasingly the non-bank funding sector. In addition, AIB and Bank of Ireland meet my officials on a quarterly basis to keep them abreast of issues pertaining to the SME sector. This facilitates the SME State Bodies Group and the Credit Review Office in monitoring progress against agreed annual SME lending plans and ensuring that new lending to SMEs continues to increase as a percentage of total sanctioned lending.I will keep this area under close scrutiny to ensure that the SME sector can access an adequate flow of credit to support the recovery of the economy.

The Government's aim for the Strategic Banking Corporation of Ireland (SBCI) is for it to enhance the range and profile of SME finance providers in Ireland. The SBCI will develop specific funding products for the SME lending market. The SBCI has also been established to last into the long term and has been mandated to consider the needs of the SME sector in particular in all of its affairs. Already the SBCI's partnership with AIB has resulted in a 2% reduction in that bank's standard interest rate offering to SMEs. The SBCI will continue to work with existing and new providers to develop specific funding products for the needs of SMEs and will also support new entrants to the SME funding markets so as to increase competition and enhance choice. The SBCI is currently in discussions with other banks and a number of non-bank providers of finance to provide products such as invoice discounting, leasing and asset based finance in order to broaden the funding options available to the SME sector and to support those providers with SBCI monies.

The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs.  The Department of Jobs, Enterprise and Innovation and my Department have worked on an amendment to the existing guarantee scheme to provide funding to SMEs whose banks are exiting the Irish market. My colleague, the Minister for Jobs, Enterprise and Innovation, will shortly bring legislation to the Oireachtas which will enable the development of a more flexible Credit Guarantee Scheme with longer duration and more products and providers included.

The Microenterprise Loan Fund, administered by Microfinance Ireland, provides loans of up to €25,000 to small businesses who have been refused credit by commercial banks. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund. This scheme is currently being reviewed by the Department of Jobs, Enterprise and Innovation with a view to making proposed changes to enhance its effectiveness.

The Credit Review Office helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by either Bank of Ireland or Allied Irish Banks, and who feel that they have a viable business proposition.They also examine cases where borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment.This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Reviewer, John Trethowan and his team, have overturned 55% of the refusals that have been appealed to the Office.  Further details are available at .

The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth.  Consequently the Department of Finance, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.

Bernard Durkan (Kildare North, Fine Gael)
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267. To ask the Minister for Finance the extent to which adequate banking facilities continue to be made available to the hotel and catering sector, thereby providing the necessary facilities for tourism; if any examination has been done as to the full extent of the requirements, as set out by the sector; and if he will make a statement on the matter. [25126/15]

Michael Noonan (Limerick City, Fine Gael)
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The Government recognises that small businesses, including those in the hotel and catering industry, play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources.

The Government understands the importance of the hotel and catering industry and have been supportive with measures such as the new 9% VAT rate, the Gathering Ireland 2013, the reduced 0% Air Travel Tax and the Visa Waiver.In addition I extended the Employment and Investment Incentive to include hotels, guest houses and self-catering accommodation in recent Budgets. 

Recent CSO figures indicate that overseas trips to Ireland increased by 14.1% for the first quarter in 2015 while total tourism and travel earnings from overseas travellers to Ireland increased by 11.6% compared to the first quarter in 2014.

My Department has been involved in a range of initiatives to encourage access to credit for small and medium sized businesses, and the SME State Bodies Group, which includes representation from Fáilte Ireland, provides a forum for the development and implementation of policy measures to enhance SMEs' access to a stable and appropriate supply of finance. 

The following provides an overview of some other incentives introduced by Government to encourage access to credit for small business:

- The Strategic Banking Corporation of Ireland has been established to encourage small business, as an additional means of ensuring that SMEs are provided with sufficient access to credit, with increased flexibility such as loans of longer duration and loans with built-in payment holidays. SBCI loans are currently available through AIB and BOI and subsequent phases will see the SBCI supporting smaller, existing bank and non-bank funding providers and bringing in new participants to the Irish market.

- The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs.

- The Microenterprise Loan Fund, administered by Microfinance Ireland, was established under the Action Plan for Jobs and can provide loans of up to €25,000 to small businesses who have been refused credit by commercial banks. Microfinance Ireland works in partnership with the Local Enterprise Offices LEOs nationally to administer this fund.

- The Credit Review Office helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by either Bank of Ireland or Allied Irish Banks, and who feel that they have a viable business proposition.The Ulster Bank have recently joined the Credit Review office on a non-statutory and voluntary basis.The Credit Reviewer John Trethowan and his team have overturned 55% of the refusals that have been appealed to the Office.  Further details are available at .

- With over €2bn of Government supports available to small business in Ireland from over 20 Departments and Agencies, it is vital that SMEs can quickly access information on this range of supports available to them. With this in mind, the Supporting SMEs Online Tool, a cross-government initiative, was launched in May 2014. On answering 8 simple questions, the small business will receive a list of available Government supports.The Supporting SMEs Online Tool is available at .

Officials from my Department meet the small business representative organisations on a regular basis and the information provided at these meetings, in tandem with the monthly granular sectoral data received from AIB and Bank of Ireland, ensure that my Department is aware of the credit requirements and issues arising in the relevant sectors. The Credit Reviewer, who is tasked with ensuring that no sector or region is disadvantaged in terms of bank lending, has not highlighted any particular deficiencies in the hotel and catering sector. He, along with my officials, continues to monitor the relevant data closely. In addition, the biannual Department of Finance SME credit demand survey ensures that my Department remains abreast of the SME credit environment for all sectors.

The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth.  Consequently the Department of Finance, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.  In this context, the Action Plan for Jobs 2015 includes a dedicated chapter and associated integrated set of actions to support the financing for growth in the SME sector.

Bernard Durkan (Kildare North, Fine Gael)
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268. To ask the Minister for Finance the degree to which his Department monitors the working capital requirements of the various manufacturing and services sectors on an ongoing basis, with a view to identifying particular deficiencies; if any decision has been made to address specific areas arising therefrom; and if he will make a statement on the matter. [25127/15]

Michael Noonan (Limerick City, Fine Gael)
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The Government recognises that small businesses, including those in the manufacturing and services sector, play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources.

My Department has been involved in a range of initiatives to encourage access to credit for small and medium sized businesses, and the SME State Bodies Group provides a forum for the development and implementation of policy measures to enhance SMEs' access to a stable and appropriate supply of finance. 

Officials from my Department meet the small business representative organisations on a regular basis and the information provided at these meetings, in tandem with the monthly granular sectoral data received from AIB and Bank of Ireland, ensure that my Department is fully aware of the credit requirements in the relevant sectors. The Credit Reviewer, who is tasked with ensuring that no sector or region is disadvantaged in terms of bank lending, has not highlighted any particular deficiencies in the manufacturing and services sector. He, along with my officials, continues to monitor the relevant data closely. In addition, the biannual Department of Finance SME credit demand survey ensures that my Department remains abreast of the SME credit environment for all sectors.

The following provides an overview of some other incentives introduced by Government to encourage access to credit, including working capital, for small business:

- The Strategic Banking Corporation of Ireland has been established to encourage small business, as an additional means of ensuring that SMEs are provided with sufficient access to credit, with increased flexibility such as loans of longer duration and loans with built-in payment holidays. SBCI loans are currently available through AIB and BOI and subsequent phases will see the SBCI supporting smaller, existing bank and non-bank funding providers and bringing in new participants to the Irish market.

- The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs.

- The Microenterprise Loan Fund, administered by Microfinance Ireland, was established under the Action Plan for Jobs and can provide loans of up to €25,000 to small businesses who have been refused credit by commercial banks. Microfinance Ireland works in partnership with the Local Enterprise Offices LEOs nationally to administer this fund.

- The Credit Review Office helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by either Bank of Ireland or Allied Irish Banks, and who feel that they have a viable business proposition.The Ulster Bank have recently joined the Credit Review office on a non-statutory and voluntary basis.  The Credit Review Office also examine cases where borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment.  This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Reviewer John Trethowan and his team have overturned 55% of the refusals that have been appealed to the Office.  Further details are available at .

- With over €2bn of Government supports available to small business in Ireland from over 20 Departments and Agencies, it is vital that SMEs can quickly access information on this range of supports available to them. With this in mind, the Supporting SMEs Online Tool, a cross-government initiative, was launched in May 2014. On answering 8 simple questions, the small business will receive a list of available Government supports.The Supporting SMEs Online Tool is available at .

The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth.  Consequently the Department of Finance, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.  In this context, the Action Plan for Jobs 2015 includes a dedicated chapter and associated integrated set of actions to support the financing for growth in the SME sector.