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

Mr. Moran and his officials are very welcome. I will comment briefly on some of the discussions the Chairman had on mortgage and legacy issues with the SME sector, divided into core and non-core business. In terms of some of the problems, particularly with private mortgages, it is a clear there is a communication problem between the bank and the mortgage holder. Usually, there are health, stress or other issues involved. People can go to an insolvency agent but there is a cost to that. On the social protection side we need to consider providing somebody with assistance. People are going to the Money Advice and Budgeting Service but it is swamped with these cases. There is a need for somebody to be brought in to help both individuals. With all due respect to the banks, we cannot expect them to make a decision without information. They are dealing with people who are extremely stressed for one reason or another and they do not understand the need to get that information to the bank. There is a void in that regard. A fund was set up in the Department of Social Protection to help such people but it does not appear to have been activated. Mr. Moran might examine that to see if we can help people who are in that bind.

Listening to what is happening on the ground, and I am quite close to the business sector, it is clear the banks are helping where viable plans have been put before them. The situation has improved in that regard. I am not saying it is perfect but it seems to be moving in the right direction. In terms of issues that arise with small businesses and so on, the local enterprise offices, LEOs, have been set up and it is hoped mentors can be put in place.

It is very easy to talk about retailers on the high street but retailers in rural Ireland are facing major issues with online businesses. We must understand that it is not just a banking problem. We may need to examine a different way of keeping rural Ireland open such as a co-operative model or social enterprise, which is the buzz word now in Europe. If we are to have the services they will have to be provided in a different format in terms of a business that is all about profit. We need to examine a number of issues as opposed to simply saying that everything is to do with the banking scenario.

My only question for Mr. Moran is on SME lending, the growth of the SME sector and, in particular, start-up businesses and the appetite for risks. It is not fair for us to ask the banks to regard this as being their problem. We are putting in place all the regulation on banks which means they cannot lend money unless they have a certain percentage set aside to reduce risk. We want to be serious about driving the economy and creating more jobs. We talk about supporting start-ups and entrepreneurs but they do not have access to real capital unless they apply for high potential start-up, HPSU, funding from Enterprise Ireland but they must have a potential start-up. Only a small number of people get through that process. Various operations are going on throughout the country but there is very little finance for them unless they get angel investors or find a different source of finance. That is a real problem in the economy.

I would welcome Mr. Moran's opinion on that and on what we can do going forward. I am aware of the microfinance fund but the targets in that regard are not being reached. Again, there is an issue with it in terms of appetite for risk.

I have many concerns in regard to the bureaucracy around the fund. As I said, in terms of targets, it is way behind. On the credit guarantee fund, I regularly come across businesses that want to expand but cannot access the funds to do so. I am not suggesting that the banks are the appropriate lenders in this regard. Many of the new investment funds mentioned are not in this space either. I am speaking in this regard not of SMEs but micro-businesses which employ 70% of all people employed in this country and are located in every small and large urban town in Ireland. This is a real problem. I would welcome Mr. Moran's views on it.