Anthony Lawlor (Kildare North, Fine Gael) | Oireachtas source

History has a habit of coming back to haunt one. I will read a quote from four years ago: "The banking sector will not be found wanting in providing increased support for its business customers in these very challenging times." It has taken four years to come full circle from the position then to the fact that small businesses were not getting any support at all.

I have a couple of questions, although many of the questions have been dealt with previously. First, I refer to the age profile of the people who approach the Credit Review Office with regard to young entrepreneurs and young people who approach it seeking finance. I acknowledge it is extremely difficult and Mr. Trethowan has mentioned that most of the businesses with which he is dealing now have been set up in the past ten years. I note entrepreneurial courses may now be found within schools and third level institutions for young people starting out.

Are we going to see the banks increase lending to these young people starting out in business? A high percentage of businesses succeed but that should not be the case as there should be a fair percentage of failures too. In America, they often say one learns more from the first failure of a business which helps in future enterprises. What is the banks’ reaction to someone trying to get back into business after failing in a previous venture?

Another problem I have with the banks concerns their capacity to understand business. Many experienced bank employees who were used to dealing with small businesses have left. Can the banks still understand loan applications from small businesses, particularly now as lending operations seem to have become more centralised? Mr. David Duffy told the committee he wanted to get the branches to make the decisions on the loans themselves. Is it because many branches do not have the capacity to make these decisions that the system has become more centralised?