Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Going back to the budget, the documentation published and the responses to the country-specific recommendations, I wish to draw the Minister for Finance's attention to the third recommendation, which can be paraphrased as continuing to support small and medium enterprises and liquidity for businesses during this period. We know a number of schemes are in operation. Some of them have been tapped out. Ulster Bank, AIB and Bank of Ireland seem to have used all of the resources related to providing the recovery funds. I am interested to see if there is a view on extending that or increasing the amount of allocation, given that the credit guarantee scheme does not have the same type of appeal to businesses and is not as sought after as the other scheme.

In the context of that recommendation, the Minister will be well aware that there is ongoing discussion and increased activity regarding the future of Ulster Bank in this State. This is potentially a huge blow to consumers, the financial sector here and small and medium enterprises, in respect of which a quarter of lending is done through this institution. The Governor of the Central Bank has said that a decision to withdraw is likely to push up interest rates, which would be a problem in a jurisdiction which already has the highest interest rates in Europe at double the European average. At my request, the Oireachtas Committee on Finance, Public Expenditure and Reform has asked that the Minister for Finance formally engage in this process. I expect that there will be an announcement, probably next week at the latest, in respect of this issue. There are a number of State-owned banks or banks where the State has a majority shareholding. The worst option in all of this would be that the loan book would be sold to a vulture fund. The best option is for Ulster Bank to confirm that it is here to stay and that its footprint, staff and presence in the Irish market is here. Some of this is outside our control but I would seriously encourage and ask the Minister to explain to the committee whether he has stepped up his engagement not just as Minister for Finance but as the person who holds the shares in AIB and Permanent TSB on behalf of the Irish people in respect of the very clear discussions that are ongoing and that have in my view have moved beyond the exploratory to actionable.