Bernard Durkan (Kildare North, Fine Gael)
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77. 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 completed as to the full extent of the requirements, as set out by the sector; and if he will make a statement on the matter. [40896/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Government recognises that small businesses, including those in the hotel 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. Officials from my Department regularly meet representatives from the SFA, ISME and Chambers Ireland, whose membership encompasses the hotel sector, to discuss issues around access to finance.

The Central Statistics Office release "Overseas Travel July-September 2015" () shows that in the period January to September 2015, there were over 6.64 million visits to Ireland. Overall trips to Ireland were up 12.5% in the first nine months of 2015 compared to the same period in 2014. For the three-month period from July to September 2015, overseas trips to Ireland increased by 13.5%.

Tourism delivers income and jobs in every town and city in the country. The reduction in VAT to 9% in the tourism sector and the abolition of the air travel tax improved Ireland's competitiveness.The 9% VAT rate is a major benefit to the tourism sector and is much sought after by other sectors in the economy. I announced changes to the Employment and Investment Incentive scheme last year subject to compliance with European State Aid provisions. With specific regard to the hospitality sector, I extended the inclusion of hotels, guest houses and self-catering accommodation in the scheme by a further 3 years. The benefit of these policies can be seen in tourist numbers, new businesses, the survival of established businesses and, most of all, in employment.

Turning to the banking sector, AIB and Bank of Ireland are concentrating on growing their balance sheets. In this context, both banks recognise the need to increase business lending and have put on record their commitment to the SME sector. 

My Department has been involved in a range of initiatives to encourage access to credit for small and medium sized businesses. 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, and includes representation from Fáilte Ireland. 

Some of the main policies introduced by this Government to encourage access to credit for small and medium businesses include:

- 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 Strategic Banking Corporation of Ireland has been established as a means of ensuring that SMEs are provided with sufficient finance for growth. In the last number of weeks the SBCI announced the first non-bank finance partnership with Finance Ireland worth €50 million and the second non-bank partnership with Merrion Fleet providing an additional €25 million in funding to SMEs. Non-bank finance is a vital source of funding to a growing economy. The SBCI has reached a significant milestone as €110 million has now been drawn down by 3,200 SMEs. More information on the SBCI can be found on.

- 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. My colleague, the Minister for Jobs, Enterprise and Innovation, has recently brought 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 support in the form of loans for up to €25,000, available to start-up, newly established, or growing micro enterprises employing less than 10 people, with viable business propositions. Microfinance Ireland works in partnership with the Local Enterprise Offices 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 the main 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 .

My Department has not carried out a specific examination of the credit requirements of the tourism sector. However, my Department and the Credit Review Office, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit on both a macro and sectoral basis in order to ensure that sufficient access to finance is available to facilitate participants in the SME sector 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.