Billy Kelleher (Cork North Central, Fianna Fail)

I am well aware of the survey. Mr. Mark Fielding, CEO of ESME attended one of the seminars I held in Dublin to discuss the whole issue. I have also met the county enterprise boards and chambers of commerce throughout the country. We invited regional bank representatives and the representatives of broader industry from farming to the chambers of commerce to the seven meetings to date.

I have an in-depth knowledge of the difficulties facing small and medium-sized businesses, SMEs, but we must put such matters in context. The most important decision to provide credit to SMEs was the bank guarantee of 30 September 2008, which was intended to stabilise financial institutions. Subsequently, we recapitalised the two main banks and nationalised Anglo Irish Bank. In light of the recapitalisation, we introduced a code of conduct in respect of lending to SMEs whereby the banks are obliged to have a capacity 10% greater than their 2008 lending figures.

We are conscious of the SMEs' difficulties in accessing credit, but there is a fundamental issue that we should discuss at a later date, that is, normal lending practices stopped some years ago. This is a fact. Credit was generously and easily handed out. SMEs must now submit projections and cash flow plans whereas submitting audited accounts to managers used to be sufficient to receive extra credit facilities. There is a tightening, but we must ensure we can wean the country from excessive lending practices to sustainable practices and that, in the meantime, SMEs are not hurt. With most of these exercises, the Government and every Deputy present have one purpose in mind, that is, the retention and protection of jobs.

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