John McGuinness (Carlow-Kilkenny, Fianna Fail)
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255. To ask the Minister for Finance his views on the report on the community banking; the reason for the delay in publishing the report; if the delay is being caused by a disagreement between his Department and the Department of Rural and Community Development on the content of the report; if so, the points of disagreement; if the publication of the report will be expedited; and if he will make a statement on the matter. [15926/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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My Department, along with the Department of Rural and Community Development, is assigned the responsibility of fulfilling the Programme for a Partnership Government commitment to "thoroughly investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions".

Local public banking is where the state, or another public body, has ownership of a bank or other financial institution, as opposed to private ownership. In Germany, local public banks are called Sparkassen. Sparkassen are only permitted to operate in specific geographic regions and their lending activities is confined to this particular area. The aim and philosophy of Sparkassen is not just profit maximization but promoting and encouraging regional economic development and financial inclusion.  An important part of this business model is also working closely and building relationships with local small and medium sized enterprises.

As the Deputy will be aware, officials in both departments have been working closely together to conduct a thorough investigation of local public banks in Ireland, based on the German Sparkassen model. This investigation included a consultation process with stakeholders and interested parties. Additionally, there has been substantial engagement and a number of meetings held with Irish Rural Link and the Savings Bank Foundation for International Cooperation (SBFIC), the international development wing of the Sparkassen group, on their proposal for a suggested model of local public banking in Ireland, based on the German Sparkassen system.

Following considerable analysis by officials, my colleague, the Minister for Rural and Community Development, Michael Ring T.D., and I have taken time to carefully consider the report on local public banking. I am satisfied that a thorough analysis was undertaken by officials. Consequently, we are now preparing to jointly submit this report for Government approval in the near future. Once the report has been considered and approved by Cabinet, it will then be provided to the Joint Oireachtas Committee on Finance, Public Expenditure and Reform and Taoiseach.

My Department continues to work with other Government departments to develop tailored and innovative policy initiatives that support the on-going needs of Irish SMEs and rural economic development. The Deputy may rest assured this remains a key Government priority.