Joan Burton (Dublin West, Labour)
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307. To ask the Minister for Finance if he has reviewed the most recent quarterly bank watch study from ISME on the ability of small and medium firms to get loan approval and access to credit; his views on the refusal rate of 35% for requests for credit; and if he will make a statement on the matter. [1682/17]

Michael Noonan (Limerick City, Fine Gael)
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The most recent ISME Bank Watch Survey for Quarter 4 2016 noted that 30% of companies who applied for funding in the three months covering September to November 2016 were refused credit by their banks. The figure the Deputy is referring to was reported in the survey results for Quarter 2 2016.

As the Deputy may be aware, my Department conducts a biannual SME Credit Demand Survey. This survey series, currently being conducted by Behaviour & Attitudes, is the most comprehensive survey of SME credit demand in Ireland, covering over 1,500 respondents and involving over 6,000 direct telephone calls to SMEs. SMEs of all sizes trading in all sectors, excluding property development and speculative activities, and in all regions are included. 

I would draw the Deputy's attention to the most recently published Department of Finance SME Credit Demand Survey covering the period April to September 2016 which can be found at . This latest survey indicates that the majority of credit requests continue to be approved fully with 84% of credit applications (excluding 'still pending') approved or partially approved. The current rate of decline stands at 15% of all applications.

The Central Bank of Ireland's most recent SME Market Report for the first half of 2016 also shows that rejection rates, for credit applications by SMEs, continues to decline and that they are now in line with the euro area average.

The Government remains committed to the SME sector. I can assure the Deputy that my Department, working with other relevant Departments and Agencies such as the Credit Review Office, will continue to advance policies to support and monitor the availability of both bank and non-bank credit so as to ensure that viable Irish SMEs have sufficient access to finance.

Joan Burton (Dublin West, Labour)
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309. To ask the Minister for Finance the status of his Department’s work with the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs in the investigation of the establishment of a public banking system here; and if he will make a statement on the matter. [1684/17]

Michael Noonan (Limerick City, Fine Gael)
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The Programme for Government contains a commitment to investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions. As the Deputy will be aware, the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs (DAHRRGA) has primary responsibility for this commitment.

Officials from my Department met with officials from DAHRRGA in late 2016 and following this meeting, DAHRRGA are developing a programme of work to examine the feasibility of the Sparkassen model, as well as other models of local public banking. The Department of Finance will provide input, assistance and support to DAHRRGA as it continues to investigate the potential of public banking.