Richard Bruton (Dublin North Central, Fine Gael)

I find the Minister's complacency in the face of these statistics quite alarming. The figures show that there has been a sharp contraction in the level of lending to non-financial institutions. People outside the finance and development land sectors are having their credit squeezed. The number of undrawn overdrafts has decreased by 25%. I can give the Minister examples of businesses that had overdrafts but are now seeing them curtailed. As a result, they are having to lay people off. That is the reality on the ground.

Has the Minister moved beyond urging the institutions to take action during his discussions with them, to the extent that the credit figures that were published in October are about to be reversed? Does he support an approach that allows the banks to play for time by stringing out this process? I am deeply concerned that the experience of other countries will be replicated here. The impact of the banking crisis on real businesses has been deeper and more profound in countries where the necessary action has been delayed. I am worried that the Government's approach, which sees getting involved as a last resort, is allowing the credit freeze to persist, with serious consequences for jobs. That is the reality on the ground.

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