John McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I believe the business sector got that message. My concern is that having received the message, the business examines its state of affairs to prepare for a bank loan. What is not being acknowledged by the bank is the historical debt that is there. A business might have diverted from its core activity. I am talking about family owned businesses, single entrepreneurs and so forth. They might have bought another property and the property might not be performing, so it is hindering the growth of the core business. The bank is not dealing with that. It is simply allowing a business to struggle on. A business might be sustained on that basis for two years or more but it is not possible or feasible in the long term, and the banks do not address that. My issue is, and this was said by Enterprise Ireland with regard to another sector, that the banks do not appear to understand the new tools that are necessary to deal with the business problems that exist. That is my point.

In simple terms, we give the banks money. By and large, they have been supported by taxpayers' money. Your Department and the Minister negotiate deals in Europe and you extend the mortgage term for the State debt and the bank debt. We assist the banks at every turn, but they are not delivering that type of assistance to their own clients.

That is what the citizen and the entrepreneur require. Otherwise, they will never recover. The banks do not seem to understand that and I wonder if they are getting money too easily. Do they not understand the policy on the money they are getting? Are they not capable of driving the necessary changes as quickly as is needed by business?

That takes us back to public interest directors. In answer to Deputy Ross, Mr. Moran said that bonuses were about performance. Maybe we should look at not paying public interest directors if they are not performing. They were given a certain role to play and they do not seem to be playing it. The banks are receiving money because of the necessity to rebuild yet they do not appreciate that they must turn around and help the other end of the economy. That point can be applied to mortgages and repossessions because I share the views of other members on repossession. When the legislation is passed, there will be a steep climb in repossessions. The pitch will be cleared, the banks have identified their customers in trouble and it will not be a happy sight.

Mr. Moran raised the issue of rent and upward-only rent reviews. I would like to get the view of the Department of Finance on this. The Department has leased properties that are locked into upward-only rent reviews. A number of clients locked into those leases have tried and failed to negotiate with the relevant Departments. This applies particularly to ports and one individual sent the keys back to the Department of Agriculture, Food and the Marine. While we talk politically about dealing with legislation to cover the private sector in respect of upward-only rent reviews, the Government has quite a number of them. I ask Mr. Moran to provide a note on the Department's view on this. Perhaps the OPW has a role. Will the State enter into negotiations with tenants with upward-only rent reviews in leases, to establish whether the Department can assist them, as we are doing in the private sector by reducing rents and providing breathing space for people to get out of difficulty?