Eamon Gilmore (Dún Laoghaire, Labour)

There is a credit famine in this country. Businesses are being starved of credit. The position in this regard was outlined yesterday by the Small Firms Association, which indicated that many small businesses have experienced their worst month of trading for 20 years. It also stated that unless specific actions are taken within a matter of days, the small business sector will implode and unemployment levels will soar. The Small Firms Association drew attention to a €15 billion fund established by the European Investment Bank. Banks in 22 of the 27 member states of the European Union have applied for and obtained money from that fund in order to assist the small business sectors in their jurisdictions. However, the banks here, which are fully guaranteed by the State, have not applied to the fund.

On Thursday last, the Tánaiste and Minister for Enterprise, Trade and Employment, in a reply to a parliamentary question tabled by Deputy Bruton, stated that she was urging the banks to facilitate capital and credit for small businesses by accessing the funding available through the European Investment Bank. She also stated that she and the Minister for Finance would be having further discussions with the banks in respect of this matter.

When the bank guarantee scheme was introduced, we were informed — this was explicit in the scheme and the legislation — that the Minister for Finance was taking onto himself all kinds of powers to direct the banks in the public interest. I have not seen evidence that this is happening. Why is it that no Irish bank has sought to access the European Investment Bank fund, which would make available to small businesses the money they so desperately need and which has been accessed by banks in other countries in order to assist their small business sectors? What has been done to direct Irish banks to take action in this regard?

The Taoiseach referred to the examinations under way to establish the level of bad debt that will have to be written off by the Irish banks before recapitalisation can occur. I understand the PricewaterhouseCoopers, PWC, report was made available to the Financial Regulator earlier today. I presume the Taoiseach and the Government are aware of the contents of that report. Is that the case? If it is, will the Taoiseach and the Government be in a position to make decisions in the near future in respect of the recapitalisation of the banks?

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