Dominic Hannigan (Meath East, Labour)
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I have a few questions of my own for Professor Honohan. We have seen major developments in economic and fiscal policy during the past few years. We had the introduction of the six-pack legislation at European level. We also had a referendum on the fiscal compact treaty. The two-pack legislation is coming down the line, but we still do not have the capacity to access any kind of shock absorption fund to help countries in financial difficulty. Does Professor Honohan have a view on whether such a fund would be useful and, if so, does he have thoughts on how it could be paid for?

My second question relates to something Professor Honohan said and I may have cut him off a little early. I ask him to address this question first, as it would allow him to finish the point he was making. He referred to people involved in the bank lending sector as being risk averse and to the fact that might be one of the reasons the amount in loans being approved was lower than it should be. When we were at school, if a teacher failed too many students, there would be a mark-up. Surely there is a role in this instance for the authorities and the Central Bank to examine how the marking system is working and if it is clear too many businesses are failing to receive credit compared to the position in other European banks, perhaps we need to do something about it. From speaking to business people in my county of Meath, including a businessman from Ashbourne who is trying to obtain funding for a business expansion scheme, they find it very difficult to gain access to credit, which they find strange bearing in mind all of the money that has been put into the banks and having heard all politicians talk about how much the money there is available for banks to lend. They do not see this as the reality on the ground. Professor Honohan might address this question first as he had half addressed it before I interrupted him.