Barry Cowen (Offaly, Fianna Fail)
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334. To ask the Minister for Finance the estimated amount of finance for residential and commercial construction that is coming from non-domestic sources and from UK investment companies and financial institutions, in particular; his views on whether this non-domestic and non-banking finance could be put at risk from Brexit. [28811/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Neither the Central Bank of Ireland nor the Department of Finance tracks the amount of finance from non-domestic and non-banking investment companies investing in the Irish construction sector.

However, the SME Credit Demand Survey, conducted on behalf of the Department, monitors the overall credit requirements of SMEs.  As the Deputy will be aware, SMEs account for 99.5 per cent of all active enterprises in Ireland. The latest survey indicates that non-bank finance for SMEs remains considerably lower than bank finance. For the period April to September 2016, the survey indicates that 8% of SMEs sought non-bank finance, this represented an increase of 1% on the previous period.

The recently published Trends in Business Credit and Deposits: Q1 2017 by the Central Bank shows that gross new lending to property-related SMEs reached €1.3 billion over the past twelve months, €353 million higher than the previous period. Drawdowns for property-related loans accounted for 24 per cent of total gross drawdowns.

Separately, the Deputy may also wish to note that the Ireland Strategic Investment Fund (ISIF) has been actively involved in a number of important initiatives which enhance the availability of finance to the construction sector in line with the terms of the Fund's mandate. This includes its investments in:

- Activate Capital- which is an innovative non-bank financing platform that has the potential to provide funding for substantial numbers of new homes in Dublin and the other major urban centres in which demand is most pronounced;

- Ardstone- Residential Partnership - which is a residential equity investment fund that is focused on delivering residential units to the market over the short-to medium-term; and

- Wilbur Ross Cardinal Commercial Real Estate Mezzanine Debt Fund- which has funded a number of residential developments in recent months.

The Government remains committed to the SME sector, including those involved in the construction sector, and sees it as the key engine of ongoing economic growth. I can assure the Deputy that my Department, working with other relevant Departments, Bodies and Agencies, such as the Credit Review Office, will continue to advance policies to ensure the availability of both bank and non-bank credit so as to ensure that viable Irish SMEs have sufficient access to finance.

The Government’s position paper of 2 May 2017, sets out Ireland’s approach to the EU-UK negotiations, including the economic implications. In relation to the future relationship between the EU and UK, Ireland wants to maintain the closest possible trading relationship, based on a level playing field, between the EU and the UK.  The Government will continue to engage with EU partners to ensure that Ireland’s concerns and priorities continue to be reflected in the EU’s negotiating position as it evolves.