asked the Minister for Industry and Commerce if his attention has been drawn to the acute difficulties arising for some exporters due to the lack of adequate bonding facilities; and the proposals, if any, he has to assist companies in this area.
Written Answers. - Bonding Facilities.
77.
I am not aware that Irish exporters are encountering any significant level of difficulty due to a lack of adequate bonding facilities. A bonding support service is provided by the banks and financial institutions as part of their normal commercial activity. In addition, under the export credit insurance scheme, which is operated by the Insurance Corporation of Ireland on my behalf, insurance cover against unfair or unreasonable calling of performance bonds may be obtained as an extension to the standard export credit policy.
The scheme does not, however, extend to the provision of unconditional guarantees to banks in support of bond issues. Such an approach would expose the State to very high risk and would necessitate the provision of considerable additional resources and expertise for its effective operation. I am not aware of any significant level of demand for such a service.
If the Deputy is aware of particular cases of difficulty, perhaps he could bring these to the attention of my Department so that the matter can be investigated further.