Brian Cowen (Laois-Offaly, Fianna Fail)

The Government's existing recapitalisation package includes a number of measures to boost lending and underpin economic activity. These measures include a commitment by the two main banks to increase lending capacity to small and medium-sized enterprises this year by 10% over last year's levels, and to provide an additional 30% capacity for lending to first-time buyers this year. The Financial Regulator is monitoring compliance with these lending targets. Furthermore, AIB and Bank of Ireland have each created funds to support projects which have a positive impact on the environment or will provide innovation in clean energy and have committed to seed capital funds, in collaboration with Enterprise Ireland, to support further the creation and development of new enterprises.

These various credit supply initiatives will be underpinned by the new statutory code of conduct for lending to small and medium-sized enterprises. Mortgage lending will be supported by the new statutory code of conduct for mortgage lending, which requires that a lender will not initiate legal proceedings for repossession within six months of arrears appearing - although the two recapitalised banks, AIB and BOI, have agreed to a 12-month wait. I reject the suggestion by Deputy Burton that these banks are lining up repossessions for next year.

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