Richard Bruton
Ceist:68 Deputy Richard Bruton asked the Minister for Enterprise; Trade and Innovation if he is satisfied with the effectiveness of the strategy pursued by his Department; and if he will make a statement on the matter. [36682/10]
Priority Questions
Departmental Strategy Statements
The strategy pursued by my Department is an integral part of the whole-of-government framework for economic recovery and growth adopted in 2008.
We are focused on employment creation through support for Irish firms, large and small, and winning foreign direct investment to sustain and expand job opportunities and boost our economic output, and they are achieving results. Last month's official figures show strong growth in exports by Irish companies in the first eight months of this year. Exports were up 8% between June and July and our trade surplus is up 29% to €4 billion.
So far this year Enterprise Ireland, EI, with funding from my Department, has delivered 32 overseas events including trade missions to Russia, Australia and the United States. Some 645 companies participated and significant business has been won. EI brought 395 international buyers into Ireland to meet client companies and write new business. Sixty-three international public procurement contracts for client companies have been won. EI believes that over 70% of exports lost in 2009 will be recovered in 2010.
So far this year, 44 new high potential start ups, 24 of which are outside Dublin, have been approved funding and there is a strong pipeline to the end of the year. IDA Ireland has secured 75 investments to date in 2010, which have the potential to create 6,000 jobs. These investments include the world's leading companies such as Stream, IBM and Google in Dublin, and United Healthcare, Lilly and Electronic Arts. The majority of these companies are already in the process of recruiting staff.
Building on these achievements, the new integrated trade, tourism and investment strategy is global in scope and covers both existing and new high growth potential markets. It sets out ambitious targets to be achieved by 2015, that is, to create 300,000 new jobs in manufacturing, tourism and traded services, of which 150,000 will be direct new jobs and another 150,000 will be generated through spin-off benefit. The strategy presents a suite of actions for building on existing strengths and driving trade relations in existing as well as new and emerging economies.
My Department is pursuing a number of other objectives in support of the achievement of the 300,000 jobs target, including a continued commitment to investing in research, development and innovation, reducing administrative burdens on business, driving the response to the innovation task force and addressing issues of competitiveness.
I thank the Minister for his reply, which, incidentally, talked all about the future and did not address the success of his Department.
My difficulty with the Department is that it and the Minister make commitments and then simply ignore them. The Department's strategy statement stated that it would deliver 62 targets in 2009 and it only delivered on 24, including the ones on which it was off target. The Department was off target on export sales by 48%, growth companies by 20% and the rights commissioner hearings by 50%. The PRSI scheme is now 90% off target.
A question, please.
Why is the Department consistently failing to deliver the targets it sets for itself?
I want to ask the Minister, Deputy Batt O'Keeffe, specifically about his target of taking €500 million off compliance costs for business. We are half way through that programme and the Department has delivered 4%; it is 96% off target.
The Minister has failed to deal with the National Competitiveness Council's request for a process for delivering on competitiveness. He has failed to deliver on his own commitment that he would review the Competition Authority's recommendations and have a process for implementing them. When will the Minister deliver commitments that he and his Department make?
The bureaucracy issue is the subject of a later question. I will deal with it in more detail at that point, if that is okay with Deputy Bruton, or I can deal with it now if that is his wish.
It is my wish that the Minister deal with the question before him.
I am sorry.
I thank the Minister.
In terms of what Deputy Bruton stated about the targets that we set ourselves, since I came into this Department at the end of March we have set various strategies in place. We have strategies for jobs, trade and innovation in terms of implementing the task force recommendations. As I see it, we are meeting all of those targets.
Pull the other one. That is completely nonsense.
On top of all of that, we are putting in place implementation policies to drive the projects that we have in place and to ensure that the commitments will be met. I am chairing the implementation group on innovation and the Minister of State, Deputy Kelleher, is chairing the trade council. Both of us are determined to ensure that the targets we have set ourselves would be reviewed on an ongoing basis and that we will achieve them.
The Minister is 50% off on the Department's export sales target for last year. He is 50% off on the Department's employment target for last year. He is off on the Department's trade performance target for last year, its business costs and its commitment on competitiveness. He is off on every one of them, and then he expects us to believe him when he states he will create 300,000 jobs, boost exports and do the divil knows what. What about the Minister's record and that of his Department? He is not delivering on anything to which he commits and we cannot believe that he will suddenly transform himself unless he addresses these failings and honestly answers to the Parliament as to why he has not delivered on them.
I will take two issues with Deputy Bruton. We have met our commitment under the Asia strategy. I note that Deputy Bruton took the 2009 figure but forgot to mention that Enterprise Ireland has indicated that this year it will get back 70% of the exports lost. I note that he forgot to mention that there was an 8% increase in services exports up to the third quarter.
I am asking the Minister about his Department's performance last year, which he reported to the Oireachtas, and he is not willing to answer for his failures.
I did not interrupt Deputy Bruton. When we are having a discussion I would like us to allow each other to make our point,——
Not if the Minister ignores the question.
——and Deputy Bruton can interrupt.
Deputy Bruton, you wanted the Minister to answer the question.
Of course Deputy Bruton forgot to mention that there was a 3% increase in other exports. He forgot to mention that there was a €4 billion increase in the balance of trade, which is 29% up on last year. He forgot to mention——
The Leas-Cheann Comhairle will note that the Minister does not answer any of the questions that are his responsibility, about which the question was addressed.
I have no responsibility for that.
Credit Availability
Willie Penrose
Ceist:69 Deputy Willie Penrose asked the Minister for Enterprise; Trade and Innovation when the proposed Government-backed loan guarantee scheme for viable small businesses will be established; the criteria that will be used for qualification of the scheme; and if he will make a statement on the matter. [36633/10]
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.
However, the Deputy will be aware that 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 to assist the working capital requirements of SMEs. The most recent meeting was held on Monday last, 11 October. A range of issues relating to SME credit were discussed and follow up action is under way.
These meetings are aimed at building on the already substantial progress that has been made in identifying the critical elements for further initiatives. It is important that any new initiatives 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 Deputy's question refers specifically to criteria to be used in any new scheme. While the specific issues are still under discussion, it is possible that a new initiative would only apply to commercially viable businesses that, despite having demonstrated the ability to repay, were unable to secure lending facilities due to known market failures. An example of such a failure would be lack of information concerning certain business sectors, certain types of business models and many foreign markets.
While the Deputy's question focuses on loan guarantees, this is just one of a range of possible measures being considered to address SME credit availability. Proposals for any new measures will be considered by Government in the first instance
I thank the Minister for his reply. It is amazing that this review is ongoing since June 2010. Does that demonstrate a mind-boggling level of apathy and lethargy, in the context where small family businesses across the country cannot get the loans they need to keep the show, paying bills to suppliers is a struggle, viable, profitable and well-run businesses are going to the wall because they cannot access credit, and two years on from the introduction of the blanket guarantee our banking system remains in crisis? We were promised that the guarantee, NAMA and the recapitalisation of the banks would assist, but the banks are risk averse.
What is the reason for not proceeding with this measure? Will the Minister not tell us the truth of the matter? Is it not the that heavy hand of the Department of Finance, to which I referred in early July, has claws across the introduction of this scheme and is ensuring it does not proceed from the incubation phase? That is what is going on. Why are we the last country in Europe that has not introduced such a scheme? It is not as if we have to reinvent the wheel. Such a scheme is operating in Britain, China, Singapore and Hong Kong. What is wrong here? Why are we different?
The Minister wants to ensure that additional moneys will be provided under such a scheme as opposed to moneys in substitution for funds that he expects will be provided. Furthermore, he wants to ensure that the banks would not be left off in meeting the obligations they have. Was a report not prepared by Forfás as part of the deliberation process? What is contained in it and when will it be published?
I thank the Deputy for this opportunity to pay tribute to the Minister for Finance for all the initiatives he has taken. I indicated that this matter would be brought to the Cabinet and it was brought to it in July without any fanfare. The decision at Cabinet was that we would be given a mandate to work with the Department of Finance and the Credit Reviewer to examine the possibility of introducing a loan guarantee scheme. Meetings on that are ongoing and the last meeting with my officials, the Credit Reviewer and Department of Finance officials took place last Monday.
It is important to point out matters, which the Deputy skimmed over, namely, that we have recapitalised the banks and have assured SME businesses there will be €12 billion available to them by way of credit. All the Ministers of State present went on a roadshow to meet SMEs around the country, get feedback and interact with the banks, and that has been done. We are delighted there has been an improvement in the overall position.
The Minister for Finance put in place a Credit Review Office to examine the operation of the banks, ensure they are lending to SMEs and to report back on a regular basis. The Minister has also put a statutory code in place. The Department of Finance and the Minister are understandably concerned to ensure that the banks must not be left off the hook and I agree wholeheartedly with the Minister on that matter.
What we envisage is a co-guarantee in terms of risk sharing with the banks making a decision on a loan application and the Government stepping in to guarantee 50% of the loan. The benefit of such an arrangement is that there is an alignment of interests between the loan originator and the guarantor. I know the Minister has concerns in that there are ventures for which there is low collateral. They may be new types of ventures and the banks are risk averse to those. Surely the Government can intervene in the case of specified areas and deal with those applications. As we saw on "The Frontline" programme on Monday, there are innovators waiting to take the plunge. We should push them along the way by removing the obstacles and facilitating them.
I am glad the Deputy said there are specialist areas because that is our belief. It is also the belief of Forfás, which issued the report. It indicated there were specialist areas where it may not be possible for the businesses concerned to obtain a bank loan and that in such areas the State should step in. We are fairly positive that we can do so in certain circumstances. However, the message must go from here that any guarantee would apply to only 2% to 4% of loans. It is important to stress that point because such a guarantee scheme cannot be the panacea, as Mr. John Trethowan said, for all the ills in terms of businesses seeking credit.
We target what we do in this sector. We want to give additionality, particularly to the technology sector because businesses in that sector will have no collateral or cash and it will be important for those businesses to be driven to enable them to grow.
Graduate Support Schemes
Deirdre Clune
Ceist:70 Deputy Deirdre Clune asked the Minister for Enterprise; Trade and Innovation the way he intends to provide more employment opportunities for unemployed graduates; and if he will make a statement on the matter. [36683/10]
The Government is pursuing a whole of enterprise approach to employment creation through support for Irish firms and winning foreign direct investment to sustain and expand job opportunities. Many jobs that are being created are providing employment opportunities for our graduates.
My Department's agencies are playing, and will continue to play, a key role in this regard. For example, IDA Ireland has already won 75 investments this year spread around the country, with a good mix of new companies starting up and expansions of existing companies. Enterprise Ireland has supported client companies in winning new exports and has announced 700 new jobs so far this year. SFI is engaged with a range of innovative Irish and multinational companies and is investing €45 million in supporting more than 300 researchers. In the next six months SFI will support three competency centres, a new energy research centre and collaborate with 88 companies to deliver sustainable jobs into the future. The county enterprise boards are supporting existing small business owners and those who want to start new businesses.
The enterprise agencies are all taking a range of actions to support client companies in ways best suited to their needs, that is, marketing, training, access to finance and advice across a range of issues. In addition to these initiatives, Enterprise Ireland operates the graduates 4 international growth programme. The programme aims to place 50 top-level college graduates with ambitious internationally trading companies. Participants will be based for a minimum of 12 months in an overseas market. Enterprise Ireland also operates the international graduate programme through which it employs 15 graduates for two years in its overseas office network. I am examining how we can increase the number of graduates working with the enterprise agencies and their client companies.
The Department of Education and Skills offers the work placement programme which provides up to nine months work experience to 1,000 unemployed graduates. At the end of September 2010, 944 graduates had commenced their placements under this programme. The work placement programme will continue to provide a vital opportunity for unemployed graduates to gain valuable work experience that will keep them closer to the labour market and will assist them in securing employment in the future.
Other initiatives which support job creation include the employer jobs — PRSI — incentive scheme and the three-year corporate and capital tax exemption for new start-up companies in 2010. We are positioning Ireland to be successful in selling our goods and services abroad, winning global investment and attracting visitors from around the world. This is the most effective way to create sustainable, quality jobs for all our citizens. It has been estimated that there will be a need to recruit up to 96,000 people on average every year up to 2014.
My question refers to graduates in particular. The Minister mentioned three initiatives in his reply, two of them under the remit of Enterprise Ireland, namely, the graduate link which will place 50 graduates and the foreign placements programme under which 15 graduates are employed. Representatives of the USI appeared before a meeting of the Joint Committee on Enterprise, Trade and Employment yesterday, which is chaired by Deputy Penrose. We were told there are currently 100,000 unemployed graduates. The piecemeal figures the Minister has provided today are only a drop in the ocean in terms of what is required. Could he not use his imagination and initiative to extend the internship programme to ensure that organisations in the public, private and voluntary sectors take on these graduates? A major investment that has been made in these people in terms of their education but the economy will be at the loss of many of them who will go aboard and many more of them depend on jobseeker's allowance.
These graduates are of value. Something can be done to assist them. The work placement programme could be extended. Can the Minister not have some ambition in this area? The relationship with FÁS in terms of the placing these people was described as abysmal by the representatives of USI yesterday, and I would agree with them.
We all are concerned about graduates coming out of college and not having employment and we are all anxious to help address this situation. We are examining a series of initiatives in regard to this matter. The internship programme would be a matter for the Department of Education and Skills but my Department and the Department of Social Protection would have an input into that. I have spoken to people in all my units to ascertain how many graduates could be taken into the Department of Enterprise, Trade and Employment. I have asked them to produce a list of the types of graduates who could be offered places. However, one significant difficulty has emerged which has stopped me from proceeding with this initiative. If one is talking about graduates being placed and retaining their unemployment assistance, there is no problem in that instance, but the problem is that for many graduates there will be a cost in getting to work and in being at work.
I spoke to multinationals to ascertain whether they would provide training to graduates for one year. The difficulty, however, is that under current social welfare legislation, any payments they make would affect the social welfare payments of the graduate trainees. For instance, if a graduate in training received €2,000 per annum from a company, this payment would be treated either as benefit in kind or income under the social welfare code and such moneys would have to be taken into account. The current position can only be changed through legislation. I am negotiating with the Minister for Social Protection, Deputy Ó Cuív, on this matter and it may be examined in future.
To how many graduates will the programme apply? IBEC's GradLink programme accommodates only 38 graduates, which is a drop in the ocean when one considers there are 100,000 graduates. These programmes need to be ramped up because progress is much too slow. Graduates from 2010 have now joined 2009 graduates in the employment market. What are the Department's targets in terms of the number of graduates who can be accommodated under the programmes?
I will obtain an estimate of the number of graduates but the figure is certainly not 100,000. There are placements available for graduates. In the past week, I took the trouble of speaking to two recruitment agencies, one of which informed me that recruitment had increased by 26% in retail, wholesale and purchasing, by 21% in production, manufacturing and materials, by 12% in engineering and utilities and by 12% in the medical, professional and health care areas.
With what year is the Minister making a comparison?
Another agency informed me that professional recruitment had increased in the third quarter by 40% as compared to the third quarter of 2009. We should not forget that a significant number of jobs are being created.
Departmental Agencies
Willie Penrose
Ceist:71 Deputy Willie Penrose asked the Minister for Enterprise; Trade and Innovation if he is satisfied that Industrial Development Agency Ireland and Enterprise Ireland have sufficient staff and resources to allow them to fully and effectively discharge their functions in view of the current level of unemployment; if approval has now been given for all resources and staffing levels sought by both agencies; and if he will make a statement on the matter. [36634/10]
The Deputy will be aware that the staffing levels for each Department and its associated offices and agencies are determined by an employment control framework agreed with the Department of Finance in accordance with the Government decision on reductions to be achieved in civil and public service numbers over the period to end 2012. In allocating staff resources under the employment control framework I gave a particular priority to ensuring that Enterprise Ireland and IDA Ireland had the necessary staff numbers to deliver on their crucial role of supporting enterprise and job creation.
In the case of IDA Ireland, I am pleased that the staffing arrangements have been finalised and the agency has confirmed to me that the levels of staff agreed will enable it to achieve the targets set out over the next five years. In the case of Enterprise Ireland, the agency has indicated its overall satisfaction with the numbers allocated to it under the employment control framework. I am pleased to confirm that Enterprise Ireland has received sanction to fill 12 priority posts that have been identified as critical to the efficient delivery of services.
Working with other Departments and agencies, Enterprise Ireland and IDA Ireland aim to increase the number of new, export focused jobs by more than 150,000 with a similar number of indirect jobs also being created, increasing the value of exports by indigenous companies by 33% and securing an additional 780 inward investment projects through IDA Ireland.
In the context of 450,000 unemployed people, the important role performed by Enterprise Ireland and IDA Ireland and their job creation capacities, is it not important that both agencies have more than sufficient staff to enable them to meet their job targets? Is it not unseemly and pathetic that Enterprise Ireland and IDA Ireland have been in negotiations with the Minister regarding recruitment since September 2009?
The chairman of IDA Ireland felt compelled to write to the Minister in May 2010 indicating that despite the fanfare surrounding its launch, the Horizon 2020 strategy would fall flat on its face and job replacements would not be delivered to Sligo and Limerick, areas which have recently incurred major job losses with the closure of Dell and other companies. The letter stated that a lack of staff would have an enormous impact on staff in overseas offices as they work to bring investors to Ireland. Is this letter not an indictment of the Minister and his Department and the Department of Finance and its control network? What message does it send out? Surely this is the one area where an exception should be made to the moratorium on recruitment. Every job created by IDA Ireland and Enterprise Ireland saves the Exchequer, which is controlled by the Department of Finance, €20,000 per annum. What better way is there to spend money?
In May, when I received the letter in question, I spoke to the chairman of IDA Ireland and indicated that I would give priority to the economic agencies that would deliver jobs. I made him aware that this would take place when we completed the overall employment framework and that is exactly what happened. I called in the chief executives of IDA Ireland and Enterprise Ireland and asked what were their requirements to meet the targets that had been set out. These were new targets because IDA Ireland had previously indicated that it would increase the number of companies it brought to Ireland from 640 to 750. I agreed with both agencies on what were the necessary employment levels and ensured both organisations secured the number of staff they required. As I indicated, Enterprise Ireland is recruiting 12 crucial staff members to help it achieve its targets. Both IDA Ireland and Enterprise Ireland have indicated publicly that they are satisfied that the number of staff allocated to them will allow them to meet the targets they have set.
That is well and good. We had great fanfare recently when the Minister and Taoiseach launched a report indicating that 300,000 jobs — 150,000 direct and 150,000 indirect positions — would be created. I understand the BRIC economies — Brazil, Russia, India and China — are expected to play an important role in this regard. I do not know how many staff Enterprise Ireland and IDA Ireland have in the BRIC countries but it is not a large number. I recently had a discussion with a senior industrialist who indicated that relevant Minister should allocate 100 staff to these countries. The individual in question, whom the Minister knows well, does not wave a flag for the Labour Party. In any event, that is the enormity of the challenge facing us because many of the new jobs we seek will have to come from the four BRIC countries. I ask the Minister to prioritise allocations to these countries to reflect the thinking in the recent Government report on job creation.
The Government has given a commitment on job creation. I have received a 25% increase in the allocation for the capital programme for the enterprise agencies up to 2016. I know the Deputy does not mean it when he argues we should throw 100 jobs at a particular region. IDA Ireland is targeting high potential growth markets such as China and Brazil. I will visit Brazil and the Middle East on trade missions. The Minister of State, Deputy Kelleher, visited Russia and all the Ministers of State in the Department will take part in trade missions to assist Enterprise Ireland.
Another important advance has been the decision to make our embassies economic entities. This will ensure they become a focal point for all the agencies and individuals working on behalf of Ireland incorporated in the relevant countries. We already have two people in Brazil making sure contacts are made and interacting with Irish people and the embassy. We also have an outstanding system in place in China and we are building our strengths in India and the Middle East. If further resources are needed to increase exports and interaction between Irish companies and firms in the countries in question, they will be provided.
Departmental Guidelines
John Perry
Ceist:72 Deputy John Perry asked the Minister for Enterprise; Trade and Innovation when he intends to publish Your Business Your Bank; the reason the publication has been delayed; and if he will make a statement on the matter. [36684/10]
Your Business Your Bank is a draft document prepared through the work of the credit supply clearing group. The document is aimed at bank business customers and seeks to bring greater clarity to the current realities of funding business and how business customers can best position their businesses to secure the funding they need. The text of the document is currently being finalised and it should be possible to have the document published in the coming weeks.
Other initiatives have been already introduced to assist businesses in their relationships with banks. With the establishment earlier this year of the Credit Review Office under John Trethowan, small and medium-sized enterprises, SMEs, being refused bank credit have access to a formal mechanism for reviewing their cases. This is in addition to the banks' own internal appeals mechanisms which have been formalised and strengthened.
The code of conduct for business lending to SMEs introduced last year by the Financial Regulator under the provisions of the Central Bank Act 1989 sets out the processes banks are required to adopt in facilitating access to credit for businesses. The code also promotes fairness and transparency in the treatment of SMEs by the banks.
As the Minister, Deputy Batt O'Keeffe, noted, under the 2010 bank recapitalisation arrangement AIB and Bank of Ireland have both committed to making available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. This must include funds for working capital for businesses. The Credit Review Office is closely monitoring the lending policies of AIB and Bank of Ireland lending policies and their lending commitments in 2010 and 2011, thus ensuring that viable SME business customers get access to credit.
I thank the Minister of State for his reply. The document, Your Business Your Bank, clearly is an indictment of the Government's attitude towards business when one considers there will have been up to 1,500 insolvencies by the end of this year and that every closure has a great impact on business. The three critical supports for business are, first, the Government has bailed out the banks, second, one would assume that banks would invest in small companies and, third, small companies in turn would retain jobs. Unfortunately, difficulties are being encountered by all families in every situation. I also listened to the Minister, Deputy Batt O'Keeffe, with regard to the commitment given by the banks. However, I refer to the costs associated with drawing down a loan at present. Although the banks may sanction loans, they are placing caveats, legal charges and stipulations on them with the result that even though such loans are being granted, many businesses are unable to draw down the money. The Minister of State should outline to Members what he intends to do about the banks' failure to facilitate businesses on the ground, despite committing the aforementioned billions of euro. People are not getting working capital and viable businesses are closing.
I will call the Deputy again. An tAire, to respond.
First, on the substance of the question pertaining to the draft document, Your Business Your Bank, I repeat this comprehensive document will be published soon. I believe it will assist businesses when they prepare applications for loans from banks. As for the broader debate on credit availability to small and medium-sized businesses, the Government acknowledged and realised some time ago that there would be difficulties in the context of credit availability to small and medium-sized businesses. That is the reason that on 29 September 2008, the Government took a very difficult and brave decision to ensure there at least would be a functioning banking system that could make available the infrastructure to permit lending to small and medium-sized businesses.
Does the Minister of State include Anglo Irish Bank in that?
While the Government received support from some parties which are responsible, other parties obviously shirked their responsibility and decided to be populist.
The Labour Party was proven right €50 billion later.
That comes to €35 billion that never will be seen again.
That said, the small and medium-sized sector is struggling to access credit.
The Minister of State got that right.
One must be also conscious that some small and medium-sized businesses are not viable and will not be able to draw down credit, regardless of whether times are good or bad.
The Government saved the casino gamblers.
Allow the Minister of State to reply.
However, a cohort of small and medium-sized businesses exists that must be supported by the banks. Since 2008 and in the context of the subsequent recapitalisation, the Government has put in place systems to first ensure there is access to credit and that if businesses are refused credit, an independent appeals mechanism exists under which they can appeal to the Credit Review Office. This is something businesses should take up and this document also will encourage people to make applications in writing.
I will allow a further supplementary question from Deputy Perry.
This is not good enough because the document, Your Business Your Bank, should be the first publication with regard to the criteria for drawing down funds. Credit is not available. The Minister of State should speak to Mr. John Trethowan of the Credit Review Office, who would tell him about the difficulties with banks at present. It is not a case of giving credit to non-viable businesses. This is about the sustainability of viable businesses that are being closed at present. Cash is not being made available to viable businesses on the ground, regardless of the commitment made by the State-guaranteed Allied Irish Banks and Bank of Ireland. I again refer to the three supports for business. Does the Minister of State not agree that as the Government has bailed out the banks, one would assume the banks would invest in business and that therefore, the third tier should be the retention of jobs but that this is not happening?
Briefly, Mr. Trethowan stated clearly recently that credit availability to the small and medium-sized sector was freeing up. In addition, a report produced by a business representative organisation, namely, ISME, states that matters are improving on the ground. Two issues arise in this regard. First, some businesses are not viable and will not be able to access credit. Unfortunately, this difficulty arises because of the contraction in the economy in 2009 in particular and the challenges that remain. However, viable businesses exist and when such businesses make an application but are refused, they will use the independent appeals mechanism. However, to suggest that no freeing up of credit is taking place is simply wrong and there is an acknowledgement among the people——
The Minister of State should talk to business people and they will tell him.
Allow the Minister of State to conclude.
It is important to note that the people whose function it is to monitor whether access to credit is freeing up or otherwise have discerned an improvement. While there is some way to go, the Government is ensuring that this issue will be monitored continuously.