Dáil Éireann Debate, Tuesday - 11 October 2016
87. Deputy Pearse Doherty asked the Minister for Finance to outline the progress made on implementing the programme for Government commitment to thoroughly investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions; and if he will make a statement on the matter. [29592/16]
View answerAs the Deputy is aware, the Programme for Government contains a commitment to investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions. Previously, in 2015, the Sparkassenstiftung für Internationale Kooperation (Savings Banks Foundation for International Cooperation - SBFIC), with the support of the Public Banking Forum of Ireland, submitted a proposal to the Department of Finance regarding the development of a local public banking system in Ireland. The proposal was considered in detail by officials in my Department and it was not clear, at that time, how local public banks could create a distinct product offering that would avoid replicating the significant regional and national supports that had already been put in place by the Government to support the financing needs of SME.
The Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs (DAHRRG) are the lead department in respect of the current Programme for Government commitment and, as the department with primary responsibility for this matter, they are now tasked with considering the issue further. The Department of Finance will, of course, be available to assist the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs as it investigates this matter.
