Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Deputy for his questions and the Chairman for his remarks on this issue. The Chairman has always been consistent and forceful in raising these issues related to the banking sector. He has also been very effective as Chairman of this committee for some time.

The issue of the staff of the banks was mentioned. First and foremost, they are the people we think of at this time. Different banks have made various announcements of redundancies, primarily voluntary in nature, over a period of time. I hope they will all be voluntary but, nonetheless that will mean a major upheaval for many people. Some people are late in their careers, others are not so far into their careers and, for many, it is a huge setback. We need to acknowledge that and hope the banks fulfil the promises they made in finding alternative employment, redeploying people and ensuring that lay-offs are voluntary in nature.

It should be acknowledged that during the Covid crisis the Government made very significant interventions in the lending market through the SBCI. We have the credit guarantee scheme whereby the State guarantees 80% of each individual loan. The uptake on that has been limited, largely because the demand among businesses to take on additional debt at this time is muted for understandable reasons. They are trying to survive. The State has done the best it can in the form of the employment wage subsidy scheme and restart grants and we will continue to support businesses in that way. We have also provided considerable support through Microfinance Ireland in the context of small and micro businesses getting support on attractive terms. Those schemes have proven to be particularly popular and successful. That should also be acknowledged. My understanding is that the Minister for Finance will be before the Dáil on banking issues this week. I am sure he would welcome the opportunity to come before this committee also but, having said that, I am more than happy to answer any question put to me on the wider issues affecting the banking sector, the people working in it and the customers being served.

The post office network and the credit unions have a major role to play. There has been much talk for many years about setting up new banks in the form of new public banking. The credit unions are a form of community banking. With the right support and strategy, I believe that is a role they can very successfully fulfil.