Áine Collins (Cork North West, Fine Gael) | Oireachtas source

I welcome the witnesses. As I have approximately eight questions, I will go through them as quickly as possible. First, I wish to make a suggestion in respect of the report from the Irish Banking Federation. On page 4, in respect of the percentage of small and medium enterprises, SMEs, using banking credit, it might be a good idea to consider debtor days when considering bank overdraft facilities across the rest of Europe as opposed to here, because I suspect we are very poor in managing our debtors. As Mr. Trethowan has already indicated, I believe that would be a worthwhile exercise. How do the witnesses envisage the loan guarantee scheme helping? As it has been established that demand is weak, the witnesses should indicate their views on what the banks are doing to stimulate demand. Is the pricing of interest rates a disincentive? What are the banks doing differently today in comparison with what they were doing 18 months ago when the Mazars report was drawn up? How are banks approaching the task of gaining a real understanding of their customers' requirements and how they can be supported where security clearly is an issue, where credit rating is an issue or where there are core and non-core issues extant? To paraphrase Fiona Muldoon of the Central Bank, there is a lot of activity but no real outcomes. Banks may be putting loans on different interest rates or on shorter terms but they are not really dealing with the core issues. I do not believe that waiting for property prices to increase will solve the problem any time soon. This is a real issue.

In my experience of helping clients to get loans, there is a huge mix, with people putting together very good business plans and getting loans, as well as people who are putting together very poor ones. It is clear there is a major issue in respect of soft supports nationwide. Everyone present is familiar with my views on this issue and on the concept of establishing a stronger mentoring force whereby businesses can receive help. I have spoken to the banks about it and they agree. However, it is important to have such a force because at present there is much activity in that space but there really is no place for some of it. While the banks were talking about entering that space, I do not think it is a space into which they should go. There should be a single establishment that does this and does so really well. I seek the witnesses' views in this regard.