Joan Burton (Dublin West, Labour)
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74. To ask the Minister for Finance his plans to implement the recommendations of the public banking investigation in respect of the provision of financial services to rural and disadvantaged urban areas; and if he will make a statement on the matter. [30831/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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My Department and the Department of Rural and Community Development published a Report on Local Public Banking pursuant to the Programme for Partnership Government commitment to “thoroughly investigate the German Sparkassen model for the development of local public banks that operate in well-defined regions”.

Specifically, the Report examined a proposal from Irish Rural Link and the Savings Bank Foundation for International Cooperation for 8-10 local public banks, starting with a pilot local public bank in the Midlands. The suggested locations in the proposed pilot in the Midlands are already serviced by existing banks, credit unions and post offices.

The Report concludes that there is not a compelling case for the State to establish a new local public banking system in Ireland using €170 million of Exchequer funds, based on the proposed model.

However, as set out in the Report, my Department will commission an independent external evaluation of other possible ways in which the objectives of local public banking, such as financial inclusion and economic development of rural and disadvantaged urban areas, could be furthered in Ireland.

The Report also highlights the positive contribution of An Post and credit unions to the Irish banking environment. There is a commitment to continue to work with An Post and the credit unions in relation to the development of the provision of financial and banking services by them, particularly in rural and disadvantaged urban areas. My Department has been engaging with Minister Naughton’s Department in this regard.

The Government is committed to continuing to engage with interested parties and stakeholders, including those representing rural and disadvantaged urban areas, on this issue by way of a stakeholder forum.

This commitment has been demonstrated by supporting access to credit for SMEs and microenterprises through a number of policy measures. These include the Strategic Banking Corporation of Ireland, the Supporting SMEs Online Tool, the Microenterprise Loan Fund, Local Enterprise Offices, the Credit Review Office and the Credit and Counter Guarantee Schemes. Many of these supports already focus on the provision of financial and banking services to rural and disadvantaged urban areas.

The Deputy may rest assured that supporting economic growth and development and facilitating the provision of financial services, particularly in rural and disadvantaged urban areas, remains an important Government priority.