Joan Burton (Dublin West, Labour)
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15. To ask the Minister for Finance the discussions his Department has had with the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs regarding the investigation of the establishment of a local public bank network here as committed to in the programme for Government; and if he will make a statement on the matter. [33939/16]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, the Programme for a Partnership Government contains a commitment to investigate the German Sparkassen model for the development of local public banks that operate regionally for which the Department of Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs (DAHRRG) has primary responsibility.

I understand that the Department of Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs have been in contact with relevant stakeholders and have now received details of a proposal on local public banking.  On the basis of this proposal the Department of Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs intends to work with other Departments and stakeholders to examine the feasibility of this matter.

My Department has communicated that it is available to provide assistance to the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs as it is required, in progressing the commitment in the Programme for a Partnership Government.  Officials from my Department will be available to support that Department's officials as they proceed with their work on this area.

Indeed, my Department has some experience in this work as previously in 2015, the Savings Banks Foundation for International Cooperation (SBFIC), with the support of the Public Banking Forum of Ireland, submitted a proposal to my Department regarding the development of a local public banking system in Ireland. The proposal was considered in detail. However, given the significant SME supports that had been put in place by the Government to support SME financing, including the Strategic Banking Corporation of Ireland's (SBCI), the Supporting SMEs Online Tool, the Credit Guarantee Scheme, the Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office, it was not clear at that time how local public banks would avoid replicating these already available supports.

The success of these policies can be seen in increases in new lending from bank and non-bank sources, the number of new credit providers active in the market and the reduction in average interest rates for SMEs. In order for businesses to access these significant levels of credit, they should seek advice from the Enterprises Agencies on how to prepare and present a viable business plan.  My Department will continue to examine actions that increase the availability of credit to SMEs.