Michael Noonan (Limerick East, Fine Gael)

The co-op to which I refer is one of the biggest in the country. It will have to let people go if the banks do not give it working capital. They are not getting it, however. There is no confidence in the sector. When we have been trying to explain the jobs crisis, we have concentrated on the lack of competitiveness in Irish industry. However, I suggest that more jobs are being lost because confidence is lacking as a consequence of the inability of the banks to provide working capital to sound firms that used to get it in the past. That must be dealt with as well. If we are to restore confidence and protect jobs, tough action should be taken in the forthcoming budget to resolve the fiscal crisis. We may need to nationalise Allied Irish Banks and Bank of Ireland or take a majority stakeholding in them. I understand that the Minister for Finance is seriously considering the bad bank concept.

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