Micheál Martin
Question:89. Deputy Micheál Martin asked the Minister for Finance if he has made contact with any of the EU leaders recently in relation to the promissory note; and if he will make a statement on the matter. [40098/12]
View answerPromissory Note Negotiations
Questions (89, 91)
Micheál Martin
Question:91. Deputy Micheál Martin asked the Minister for Finance if he has undertaken any initiative relating to arranging bilateral meetings for the principal purpose of putting Ireland's case relating to the funding of bank related debt. [40258/12]
View answerWritten answers
I propose to take Questions Nos. 89 and 91 together.
As the Deputy is aware, the Irish Government has been working extremely hard to secure a deal on the Irish bank debt and further detailed work will be stepped up to ensure that the positive moves in Europe are harnessed to maximise the benefit to the Irish taxpayer. This is on the back of the Euro Area summit statement of 29 June of this year and the on-going work remains one of the Government’s key priorities.
On 12 and 13 September I travelled to Paris, Berlin and Rome for meetings with my counterparts in the respective Ministries of Finance. These meetings were part of our on-going consultations with our European colleagues, at all levels, to support broader understanding of the extent to which we are living up to our commitments under the EU-IMF Joint Programme of Assistance, as well as the remaining challenges we face.
A priority item on the agenda in each of these meetings was the issue of the promissory note. I am glad to say that we met with strong appreciation of our situation and we were able to have very constructive dialogue in each case on our approach to this question. We will be continuing our engagement with the Troika and our partners in the European Union with a view to a satisfactory resolution of this issue and other related questions.
Ministerial Meetings
Questions (90)
Micheál Martin
Question:90. Deputy Micheál Martin asked the Minister for Finance the meetings he has requested or held with the President of the European Central Bank since 1 July 2012. [40252/12]
View answerWritten answers
I met President Draghi and his officials on 17 July in Frankfurt. In addition I have also had discussions with ECB officials on the margins of both the July and September Eurogroup/Ecofin meetings.
Question No. 91 answered with Question No. 89.
EU-IMF Programme of Support Issues
Questions (92)
Micheál Martin
Question:92. Deputy Micheál Martin asked the Minister for Finance if there are any specific cuts being implemented by him about which he has written to the EU, IMF or ECB previous to their implementation. [40272/12]
View answerWritten answers
As Deputy Martin will know, I have responsibility for the overall budget and budgetary projections. However expenditure matters and the detailed allocation of expenditure are the responsibility of my colleague, the Minister for Public Expenditure & Reform, Brendan Howlin TD. Following each quarterly EU/IMF Programme review, I, along with the Governor of the Central Bank, issue a Letter of Intent to the EU and IMF setting out our commitment to the Programme. I have not written to the EU, IMF or ECB in relation to any specific budget measures.
Small and Medium Enterprises Supports
Questions (93)
John McGuinness
Question:93. Deputy John McGuinness asked the Minister for Finance if he has considered the initiative announced by the UK Business Secretary, Mr. Vince Cable, that a new business bank is to lend £1 billion to small businesses in order to ensure access to credit; and if he will make a statement on the matter. [41671/12]
View answerWritten answers
I am aware that the UK Business Secretary Vince Cable recently announced his intention to create a Government-backed business bank to help small and medium enterprises, with Government funding of £1 billion. This new institution brings together in one place existing Government finance support for small and mid-sized businesses. It is estimated that it will take between 18 to 24 months to actually establish this new institution and may be 2015 before it actually distributes any loans. There is also at present a lack of detail about both whether the initial government support for this initiative is a once-off provision or not and also the manner in which this new venture will seek to attract private investment. Here, as the Deputy may be aware, the Government has introduced a number of parallel initiatives to facilitate and ensure the flow of credit to viable small businesses. It announced the establishment of the Strategic Investment Fund (SIF) in September 2011. The SIF will channel commercial investment from the National Pensions Reserve Fund (NPRF) towards productive investment in the Irish economy, following appropriate legislative changes to the investment policy of the NPRF. As well as money from the NPRF, the SIF will seek matching commercial investment from private investors and target investment in areas of strategic significance to the future of the Irish economy.
The Strategic Investment Fund will comprise a series of sub-funds, targeted at commercial investment in critical areas of the Irish economy including infrastructure, venture capital and provision of long-term capital for SMEs. The NPRF will take a lead role in the development and implementation of each sub-fund.
As the Deputy is aware, the Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending, including lending for working capital purposes, of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets.
The independent Credit Review Office (CRO), as part of its remit, monitors the banks’ progress in relation to the targets and reports on a quarterly basis in this regard. Mr. Trethowan’s next report is due to be published shortly.
The CRO also reviews decisions by the pillar banks to refuse, reduce or withdraw credit facilities (including applications for restructured credit facilities) from €1,000 up to €500,000. The CRO is overturning 55% of the refusals referred to them. I would appeal to SMEs who have been refused credit by banks to avail of the services of the CRO.
The Deputy should be aware that the Microenterprise Loan Fund Act provides for a scheme which will facilitate up to €40million in additional lending to microenterprises over the next five years. Furthermore, the Government is in the process of facilitating up to €150m per annum of additional credit through the Temporary Partial Credit Guarantee Scheme, designed for SMEs who, because of lack of collateral or because of the specialised sector they operate in, face difficulties in accessing bank credit.