Frank Feighan (Roscommon-South Leitrim, Fine Gael)

Where did this all start? It started in the Galway tent where builders and developers were cheered on to create a bubble in which most people got caught up. This bubble was encouraged and supported by the Government, property developers, bankers and speculators.

Many young couples are in negative equity because they bought their houses at the height of the boom, but they have now been badly caught. I come from a business background and a business that ten years ago employed up to 30 people. Businesses had to diversify, but we did not survive. I diversified into property and bought shares. I bought shares in the two major banks, AIB and Bank of Ireland at the height of the market. I also bought shares in Eircom and in many mining companies. Sometimes I made a profit, but I did not make a profit on my bank shares. I am like most people in this country who when they make a profit do not expect to hand it over to the Government, but just pay the capital gains tax. However, I find it repulsive to think that the people who speculated and gambled now depend on the Government and banks owned by taxpayers to bail them out. This is wrong. People should be able to pay their way and should do so. Those who have lost should not be able to cop out or be bailed out.

Billions of taxpayers' money will now be paid into NAMA to bail out the banks. One of NAMA's chief goals is to get money flowing to businesses again. However, I believe the terms of reference are being weighed in favour of the banks and the big builders, while neglecting the needs of the small and medium enterprises and the ordinary person on the street.

Given my background, I want to address one aspect of the legislation. Small businesses are the lifeblood of this economy and employ hundreds of thousands of people. However, hundreds of businesses are gone already with the loss of a great many jobs and hundreds more are on the verge of bankruptcy. I tried to raise the NAMA terms of reference for two consecutive days in the Dáil and in the end I was put out of the Chamber for trying to highlight a situation which I believe to be very serious. If we want the economy to get going again it starts with jobs and it ends with jobs. The Government and the banks are in denial as regards what is happening to businesses in this country. Clearly the Government is far more interested in bailing out the golden circle of bankers and big builders, instead of helping the thousands of hard working businesspeople and their employees who keep the economy going.

The Government is deluding itself that banks have started to lend to businesses again. It should wake up. The banks have probably the most professional PR companies in the country. The three banks have colluded to give the impression that they are open for business and lending again. They are not open for business. Just ask any of the businesses that are trying to employ people around this country, farmers, etc. The banks are closed for business and lying through their teeth. Any Administration that believes what the banks are saying should be put out of government, because I believe we have a crisis and this Government is in denial.

We are fed up with the small empty promises from the banks. People are also fed up with the Government because it is not listening to small businesses. Once again I would urge businesses and their hard-pressed families to remind the banks of the guidelines that have been set down as regards the next time they ask for a loan, overdraft or extended credit facility. The banks should be reminded that they are only open for business, courtesy of the support of the taxpayer.

I needed €20,000 to keep five jobs going, but I was told to close my business. Why should I close the business and put five people who were employed full time on the dole? This is happening around the country and I am not afraid to speak about it. However, some business employers are petrified and terrified lest they offend the banks. Because I went public, nationally, on this very situation, I was threatened by the banks. I was told by one bank that it was monitoring everything I said. I will not be cowed by a faceless institution that we have bailed out. I believe the Government, for once, instead of being led by the nose in accepting that the banks are open for business, should question whether this is the case. It will find they are not.

The current climate limits the number of customers who will be able to fulfil the terms of sensible lending criteria. In the past we had Foir Teoranta to lend to businesses, and that helped us out many years ago. We need a bank now to help out small businesses. Once again, there are no guarantees that money will be used to provide loans. Unfortunately, the money to be put into banks will just repair their balance sheets. In the boom period they became too dependent on wholesale funding, rather than relying on the deposits of Irish customers to fund lending. The money that will appear in those balance sheets may well be used by the banks to wean themselves off a reliance on overseas funding. Foreign liabilities could be repaid using the NAMA proceeds which would mean more stable and conservative balances at the banks, but no increase in lending.

The only significant lending by Anglo Irish Bank is to existing large developers and little change has been witnessed in the bank's management. Anglo will, of course, be participating in NAMA. It should be noted that among most of the staff in the major banks who caused these problems the champagne corks are being opened because they are delighted to have jobs for life. They will be in no hurry to ensure that the banking crisis ends. Finally, there should be an investigation into why cheques are being delayed. It takes five full working days for a cheque to be cleared. Back in the age of steam it took two working days. Something has to be done to ensure that credit is available for businesses. NAMA is not the way. An open new bank would be the way to address the crisis.

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