Dáil Éireann Debate, Wednesday - 6 October 2010
312 Deputy Joe McHugh asked the Minister for Enterprise, Trade and Innovation, further to Parliamentary Question No. 298 of 30 September 2010, to indicate a precise date for the roll-out of the envisaged loan guarantee scheme; if the scheme will be introduced by the end of 2010; and if he will make a statement on the matter. [35408/10]
View answerAs I outlined in my reply to Question Number 1742 on 29 September 2010 and Question Numbers 296 and 298 on 30 September 2010, my officials are working with their colleagues in the Department of Finance, the Credit Review Office, Enterprise Ireland and Forfás to address access to credit issues for viable SMEs including, the option of a loan guarantee scheme.
Substantial progress has been made in identifying the critical elements involved in any further initiatives. However, in developing any further initiatives, it would be important that they would complement, rather than substitute, the main banks' lending commitments and activities under the recapitalisation package and that they would represent value for money from the taxpayer's perspective. The provision of credit to our enterprise sector, especially SMEs, should primarily come from a properly functioning banking sector and any additional initiative on the State's part should not relieve the banks from their obligations in this regard. Only when these issues have been satisfactorily addressed will it be possible to indicate a commencement date for any new initiatives.
