Written Answers Nos. 82-87
82. Deputy Bernard J. Durkan asked the Minister for Finance the incentives currently available to encourage small business with particular reference to access to credit; and if he will make a statement on the matter. [37583/14]
View answerThe Government recognises that small businesses play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy is focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. My Department has been involved in a range of initiatives to encourage access to credit for small business, and the establishment of the SME State Bodies Group has also provided a forum where this issue is discussed and policy options explored on a regular basis.
The following is an overview of the main policies introduced by this Government to encourage access to credit for small business:
- With over €2bn of Government supports available to small business in Ireland from over twenty Departments and Agencies, it is vital that SMEs can quickly access information on this range of supports available to them. With this in mind, the Supporting SMEs Online Tool, a cross-government initiative, was launched in May 2014. On answering 8 simple questions, the small business will receive a list of available Government supports. In the four months since its launch, this website has had over 17,000 unique visits. The Supporting SMEs Online Tool is available at www.localenterprise.ie/smeonlinetool.
- The Strategic Banking Corporation of Ireland (SBCI) has been established by the Government as a means of ensuring that SMEs in Ireland are provided with sufficient finance for growth. As the Deputy will be aware, the legislation enabling the establishment of the SBCI was passed by the Oireachtas prior to the Summer recess and the SBCI was incorporated as a company in September. The company is already operational with the immediate priorities being the finalisation of the funding arrangements for the company and establishing mechanisms to enable credit to flow quickly to the small business sector. This work is well advanced. Loan agreements with the international funders, KfW and the European Investment Bank, will be signed in the coming weeks. Following that, the SBCI will agree lending terms with traditional bank lenders and new credit providers from beyond the traditional bank sector allowing for the distribution of SBCI funding to the SME sector in Ireland on a prudent basis. I anticipate that the first SBCI funded loans to SMEs should be available for disbursement before the end of this year.
- Another important initiative stemming from the work of the SME State Bodies Group is the "Finance4Growth" programme offered by Managementworks. This provides participants with access to an SME finance expert who will explain the different sources of finance available, guide them as to which would be most relevant to their business, and advise on how banks, investors and agencies make their decisions. This mentoring is free, and there is also an option to avail of a one-day finance workshop and a further two hours of mentoring for a small fee. It is important that businesses seeking finance are equipped with as much expertise as possible to ensure that they can provide lending institutions with strong evidence that they have strong repayment capacity and this programme provides them with exactly that.
- The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs. My colleague the Minister for Jobs, Enterprise and Innovation will shortly bring legislation to the Oireachtas which should broaden the scope of the scheme to encourage higher utilisation.
- The Microenterprise Loan Fund, administered by Microfinance Ireland, provides loans of up to €25,000 to small businesses who have been refused credit by commercial banks. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. Consequently the Department of Finance, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.
83. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which house price inflation continues to be monitored; and if he will make a statement on the matter. [37584/14]
View answerThe most recent Residential Property Price Index for August 2014 published by the Central Statistics Office indicates that national residential property prices increased by 2.3 per cent between July and August and by 14.9 per cent on an annual basis. Prices in Dublin increased 3.5 per cent over the month to August and were up 25.1 per cent in year-on-year terms. Outside of Dublin the rate of price growth stood at 0.8 per cent between July and August, up 5.6 per cent in year-on-year terms.
In relation to house prices specifically, in the year to August these increased by 14.6% nationally. In Dublin the price increase was 24.7% and outside Dublin house price inflation stood at 5.8% for the year.
I wish to assure the Deputy that my Department continues to monitor price and other developments in the house purchase and rental property markets. As set out in the Construction 2020 Strategy, the Government continues to work on addressing remaining challenges in the property and construction sectors.
84. Deputy John Halligan asked the Minister for Finance further to Parliamentary Question No. 155 of 6 May 2014, if he will provide an update in relation to the Setanta Insurance issue; if his attention has been drawn to the fact that there are numerous persons in County Waterford and indeed across the country who have been left in a terrible position (details supplied); and if he will make a statement on the matter. [37603/14]
View answerI am aware of the difficulties that the liquidation of Setanta Insurance Company Limited has caused for Setanta policyholders and those claiming compensation under Setanta insurance policies. My Department and the Central Bank will in due course be reviewing the overall circumstances relating to Setanta and will report to me on what lessons can be learned and how the framework can be strengthened.
With regard to the position of Setanta claimants, you will appreciate that a liquidation of an insurance company is a legally complex and time consuming process. In general terms, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim. However, it could take several years for a particular case to be finalised. Setanta is a Maltese incorporated company and, therefore, the Setanta liquidation is being carried out under Maltese law. The Setanta Liquidator is currently examining a range of factors in order to estimate the cost of claims and the extent to which claims can be met in the Setanta liquidation. The Liquidator has advised that settlements can only be paid out after all of the company's liabilities are quantified, including claims.
The Insurance Compensation Fund (ICF) provides for payments to meet the liabilities of insolvent insurers in certain cases where it is unlikely that claims can be met otherwise than from the ICF. Under the Insurance Act 1964 claims by bodies corporate or unincorporated bodies are not covered by the ICF, except where there is a liability to or by an individual. In addition, all ICF payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser. Management and administration of the ICF is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice. The Accountant of the Courts of Justice is currently engaging with both the Setanta Liquidator and his legal advisors to put in place an appropriate mechanism to commence making applications to the High Court in accordance with the Insurance Act 1964. I understand that at the moment the Accountant is not in a position to put a timeline on when the first applications will be made. Procedures for processing claims and the timing of payments, including the question of advance payments from the ICF, is a matter for the President of the High Court. I have asked that this information on procedures is made available publicly as soon as possible. While this process is still ongoing, the Setanta Liquidator has advised that policyholders and brokers should send correspondence in relation to individual claims or other claims matters as soon as is possible to Setanta Insurance Company Limited (in liquidation) at:
Deloitte & Touche
Earlsfort Terrace
Dublin 2
Tel: 0818 255 255
Email: iesetanta@deloitte.ie
85. Deputy Arthur Spring asked the Minister for Public Expenditure and Reform his plans for flooding alleviation projects to be carried out in the Kilmoyley area of County Kerry, in view of the flooding that has taken place over the past number of winters. [37473/14]
View answerLocal flooding issues are a matter, in the first instance, for each Local Authority to investigate and address. The Local Authority may carry out flood mitigation and coastal protection works using its own resources. It may also apply to the Office of Public Works for funding for flood mitigation works under the Minor Flood Mitigation Works and Coastal Protection Scheme. If Kerry County Council submits an application for funding in respect of Kilmoyley it will be assessed under the eligibility criteria of the Scheme, which include a requirement that any measures are cost beneficial, having regard to the OPW's overall availability of funding. Application forms and related guidelines are available on OPW's website www.opw.ie.
86. Deputy Arthur Spring asked the Minister for Public Expenditure and Reform his plans for flooding alleviation projects to be carried out in the Ballyduff area of County Kerry, in view of the flooding that has taken place over the past number of winters. [37474/14]
View answer87. Deputy Arthur Spring asked the Minister for Public Expenditure and Reform his plans for flooding alleviation projects to be carried out in the Cashen area of County Kerry, in view of the flooding that has taken place over the past number of winters. [37475/14]
View answerI propose to take Questions Nos. 86 and 87 together.
Moneycashen, which consists of parts of the townlands of Kilmore, Cloghane & Knoppoge in the Cashen area, was identified through the national Preliminary Flood Risk Assessment (PFRA) as a location where coastal flood risk was potentially significant. A detailed assessment is being carried out under the Shannon Catchment Flood Risk Assessment and Management (CFRAM) Study. The Office of Public Works is currently undertaking this in partnership with the relevant local authorities including Kerry County Council. Draft flood maps have been produced for Moneycashen and were subject to a public consultation day that was held in Ballyduff on 24th September 2014. Feedback from that event and a forthcoming national consultation process will be taken account of before the flood maps are finalised. Subsequent phases of the Shannon CFRAM Study will involve an options assessment process followed by the preparation of Flood Risk Management Plans. Further information and updates on the Shannon CFRAM Study are available on www.shannoncframstudy.ie.
The Office of Public Works has recently completed the refurbishment of 2,000m of flood defences on the River Cashen at Derryco and other works are ongoing in the area. OPW has also recently extended flood defences at Rahoonagh on the Cashen for a length of 500m to provide protection to a number of houses in the area.
OPW has also carried out an examination of the feasibility of dredging the River Feale/Cashen estuary. This examination has concluded that while this dredging would provide some relief to the flooding problem in the area, it is likely to cost several million euro, and that there is little likelihood of funding for this being available in the foreseeable future. Further, because this area is a Special Area of Conservation and a Natural Heritage Area of European importance, significant constraints will apply to any work. In the short to medium term, the OPW will consider the installation of localised pumping facilities as funds and resources allow, in the polders worst affected by flooding.
