The Minister for Finance today (22nd February 2013) welcomed the publication of the 2013 Action Plan for Jobs (APJ). The APJ is a targeted ambitious set of actions that will enhance employment growth and further build on other recent positive developments such as the sale of Irish Life and the termination of the promissory notes.
Welcoming the Plan, Minister Noonan stated:
"The Department of Finance is pleased to be associated with the publication of the Action Plan for Jobs 2013.
From my Department’s perspective, the material related to Access to Finance is of particular importance. SME’s will be a key driver of growth and job creation across the country and access to credit and financing is essential for them to trade, to grow and to create jobs. Through intensive engagement with SMEs and the banks we have identified a range of measures that tackle the challenges related to SME credit.
By end 2013, new Government schemes totalling almost €2.5 billion in new lending to business will be in place:
·
€850 million of the National Pension Reserve Fund for the SME sector·
€700 million seed and venture capital scheme·
€450 million credit guarantee scheme·
€225 million development capital scheme·
€120 million second call under Innovation Fund Ireland·
€90 million microfinance scheme
Furthermore, the plan put in place new structures to better monitor bank lending to business:
·
€4 billion in lending to businesses by each of the pillar banks (AIB & BoI)·
Extra staff for the Credit Review Office, which overturns over half of the bank refusal decisions which are appealed to it·
More comprehensive progress reports on SME lending by banks to my Department·
I have asked one of the public interest directors in each of the pillar banks to have specific reporting responsibility on SME lending·
As part of Budget 2013, I announced a 10 point plan for SMEs which includes several measures aimed at improving their credit situation.Businesses also need greater choice in sourcing finance, and should be able to rely, not only on conventional loans from banks, but on other, often non-bank funding sources. My officials are using the opportunity of the Irish Presidency to actively investigate non-bank funding sources with our European colleagues and I have put this issue on the Agenda for the informal Ecofin that will take place in Dublin in April.
In addition to targeting improvements in credit conditions, my Department is also actively involved in assisting job growth through initiatives in the Construction, Agri-Food, Financial Services, Tourism and Aviation sectors."
Note to Editors:
Department of Finance Action Points:
53 Implement and monitor the 10 Point Tax Plan for the Small and Medium Enterprise Sector as announced in Budget 2013. (D/Finance)
55 The SME Funding Consultation Committee will continue in 2013 to engage intensively in proactively addressing issues associated with SME funding and financing in conjunction with relevant stakeholders. (SME Funding Consultation Committee chaired by D/Finance)
57 Leverage Ireland’s Presidency of the Council of the EU to ensure access to finance for SMEs is appropriately pursued. (D/Finance, DJEI)
58 Monitor Real Estate Investment Trusts (REITs) uptake. (D/Finance)
59 Monitor the lending targets for the two pillar banks to €4 billion in 2013. (D/Finance, Central Bank, Credit Review Office)
60 Detailed data from the pillar banks will be collated and examined, ensuring a more informed understanding of the SME bank lending environment. (D/Finance, Central Bank, Credit Review Office)
61 Survey the demand for SME credit. Actively encourage a broad programme of research that will benefit from the data collected to date. (D/Finance, Central Bank, Credit Review Office)
64 Recruit six additional reviewers for the Credit Review Office. (Credit Review Office, D/Finance and SBG)
65 Implement, as appropriate, the recommendations arising out of the Credit Review Office assessment process. (Credit Review Office, D/Finance and SBG)
67 Facilitate, where necessary, the partnership between Silicon Valley Bank and the NPRF. (D/Finance)
68 In association with the EIB/EIF, identify and develop sustainable mechanisms to facilitate the provision of financing to SMEs. (D/Finance, DJEI)
69 Investigate the potential for alternative funding mechanisms including peer to peer lending, supply chain finance and crowdfunding. (D/Finance, DJEI)
73 Develop proposals to incentivise dynamic companies who choose to continue to grow and build scale using the IPO route to raise development finance as an alternative to a trade sale exit. (D/Finance, DJEI/Forfás, EI, IDA, SBG)
74 Establish a group to review the availability of appropriate finance for international trade. (DJEI, EI, D/Finance)
117 Assess the potential for further actions to support improvements in labour market competitiveness. (Forfás, DJEI, DSP, D/Finance)
151 Enact the proposed amendment to the NPRF legislation to allow it to invest in Public Private Partnerships. (D/Finance)
294 Better cross-Government co-ordination of action on the property market will be progressed under the active leadership of the Department of Finance. (Department of Finance with other relevant Departments and agencies)
301 Continue to apply 9 per cent VAT rate on goods and services benefiting the tourism industry in 2013. (D/Finance).
302 Maintain the offer to abolish the remaining Air Travel Tax of €3 subject to acceptable commitments from the carriers to additional inbound flights. (DTTAS, D/Finance)
322 Review the tax code to establish the feasibility of providing a market for specific forms of aircraft financing - enhanced equipment trust certificates. (D/Finance)
323 Continue to implement the Strategy for the International Financial Services Industry in Ireland. (D/Finance, other Departments and agencies)