Enda Kenny (Mayo, Fine Gael)

Since the Taoiseach entered office, the process of government has been characterised by indecision. An economic lifeline is required for small businesses. There is no point giving a blood transfusion when the patient has died or in providing capital flows through the banking system after businesses have closed. Some 10,000 people are joining the dole queues each month. I travelled throughout the country in the past two weeks and discovered that small businesses everywhere are in crisis. These businesses cannot obtain credit and their overdrafts are being called in. They will be obliged to shut up shop early in the new year.

This is a crisis and if the Government does not act quickly, thousands of jobs will be lost. This matter is not about the banks, it is about their customers and the protection of Irish jobs in Irish firms. The Government has ignored all the warning signs, from the events of the property boom through to the adverse financial indicators. We have reached the stage where people will be obliged to pass the keys of their houses back to the banks in the new year if the Government does not act. The Government must find a formula in respect of recapitalising the financial system in order that credit might flow through it and that business might be conducted.

People in every county are approaching Deputies from the Taoiseach's party, my party and other parties and stating that they cannot continue as they are doing at present because the position is too tight. Banks cannot lend on a long-term basis unless they can secure capital on the same basis. Does the Taoiseach accept that there is a need for recapitalisation, that there is a need to have credit lines flowing through the banking system and that thousands of jobs in the small business sector are on the line and will be lost unless the Government takes action?

What is the Taoiseach's plan with regard to recapitalising the banking system so that small businesses might survive and remain in operation and in order that jobs might be protected? It is about those jobs that I am concerned. I would like those involved in small businesses throughout the country to hear the Taoiseach's response with regard to what the Government intends to do to save the jobs to which I refer. What are his intentions in the context of recapitalisation?

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