Niall Collins (Limerick West, Fianna Fail)

I wish to speak in support of the Government amendment. To pick up where the previous speaker ended in regard to the bank guarantee scheme, it is to the credit of the Government and this institution that we set up the scheme in such a timely manner. It is a major currency to have confidence within the banking system because it is the lifeblood of all our businesses and households. Setting up the scheme in the manner in which we did was vitally important and heralded across the world as a major initiative, and we all know what happened following that. All the other countries across Europe and in other parts of the world followed the initiative taken by the Government here and the Oireachtas.

It is important to point out that the scheme has not cost our Exchequer a single euro. The banks have been allowed to trade, and there was an influx of money into the country at the time it was set, which was vitally important to keep the show on the road.

In any discussion on the banks we must be mindful that banks are in business to make money but at the same time they have to take the long-term view, and I am not sure if they have been doing that recently in terms of the small and medium enterprises. We cannot say they are out to screw everybody but the impression is that they have been screwing people and not taking the long-term view. People who had the European Central Bank tracker mortgages benefited when the rates were moving but those on the other rates did not benefit as quickly as expected.

SMEs in general are under pressure, not just from banking but from a variety of factors. Of particular concern to me is energy costs. In the part of County Limerick I represent, in the mid-west region, I can point to up to a dozen sites that have planning permission approved for wind farms but the ESB — and I have taken up this matter with the regulator — will not allow the connections to proceed for the wind farms to commence. Producing free, clean energy would ultimately have an effect.

I agree wholeheartedly with what Deputy Coveney said about the local authority sector. Local authorities have a major role to play in this area, particularly in respect of waste water charges. Not only are many local authorities charging for water going into a premises but they have introduced the new concept of charging the same amount for the cubic metres of water coming out. Small businesses are getting hit twice, so to speak.

I echo the call made in this House that local authorities should consider culling much of the unnecessary overseas travel in which they indulge. Local authorities' core functions are about housing, sanitary services and the provision of roads. There is no need for their members to travel around the world.

Another factor that has been brought to my attention is affecting small and medium enterprises. Last Saturday a number of sole traders, small and medium enterprise people, raised several issues with me at my clinic. They spoke about the return of the black economy, which is stronger than it ever was previously, and they are quite concerned about it. My next comment should not be construed as racist because I am merely echoing what was said to me. They told me that many of the new Irish or the non-Irish nationals, particularly those in the fringe construction sector, are engaging in "for cash" type jobs. These are not legitimately registered trades people, and that practice is having an impact on the ground.

Another area where the sole traders and the small registered contractors are experiencing difficulty is in regard to banks when they look for some extended credit to renegotiate their leases and help with their cash flow.

Regarding small and medium enterprises, we must bear in mind that many of them are family run businesses. It is not just the one job, so to speak.

I welcome the 16% increase in the allocation to the county enterprise boards. In my constituency recently, the enterprise centres received three grant allocations. Croom, Ballylanders and Broadford, in County Limerick, each got a capital grant of €450,000 to develop enterprise centres which are crucial. I thank the Minister for that.

I will make one point on bank capitalisation. If the banks are to be capitalised we must look at a mix. The debate is centring on whether it should be Exchequer funding, public money or private money. It might be prudent to have a mix and the Minister is taking the right approach in not rushing in with a blank cheque drawn on the National Pensions Reserve Fund and handing it over to the banks. They should be given a chance to sort out their house internally without having to use the Exchequer funding.

Critics either in this forum or outside of it will blame the Irish Government for the problems in the Irish economy but they cannot blame the Irish Government for the problems in the world economy. We are a small island nation, and we should keep that in perspective.

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