I propose to take Questions Nos. 296 and 298 together.
The provision of credit to our enterprise sector, especially to SMEs, should primarily come from a properly functioning banking sector. The whole focus of Government policy on banking since 2008 has been to return the banks to a position where they can access funds and lend these funds on to viable businesses and households to support enterprise growth and economic recovery.
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 also that there would be value for money from the taxpayer's perspective.
Loan guarantee schemes can be designed to address known credit market failures for viable firms, such as low collateral or lack of market knowledge on the part of the lender. My officials are working with their colleagues in the Department of Finance, the Credit Review Office, Enterprise Ireland and Forfás to address these 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.