Ulick Burke (Galway East, Fine Gael)

I am not sure whether, because of his involvement with this Bill, the Minister is fully aware of what is happening at ground level in the banks which consistently refuse funds to legitimate enterprises. I was saddened approximately five weeks ago by two instances of the many that we all come across. In the first an important, active, reliable, fully-resourced and long-established food industry that had a good credit record won a valuable import contract from an overseas company for the whole of Ireland. It is a small industry that won national recognition. To extend the business and fulfil this contract it required a loan of €25,000 but every institution, local and national, including the one with which it had a long and favourable association, declined the loan. The company lost that opportunity.

Lack of cash is causing the loss of jobs from small enterprises left, right and centre. The AIB and Bank of Ireland declined this loan. Does the Minister intend to intervene at any level and if so how? He has put a great deal of money from national resources into the banks but they are hoarding it. Few are making resources available but those who are do so at rates that are out of kilter with reality.

I have another example that will give the Minister an insight into what the banks are doing. During the recent fine weather a grain farmer in my locality went out to harvest but after four or five hours his combine harvester seized up. He wanted an instant response from the bank to get a new or second-hand machine. He approached his bank where he had no previous difficulty, and went to every leasing agency and other lending institution but none would provide the money. He asked the bank manager would he allow the cereals to rot in the fields rather than give him the money. It was in his interest to complete the harvest so that he could pay off his loan but the manager said, "Yes. It can rot in the fields". The Minister must intervene in some way to direct those people. Does he or do his officials liaise in any way with the banks to ensure that this will not continue? They are two simple examples of everyday life that is being stifled.

How can the banks justify their current policy of stifling every opportunity presented to them if we hope to generate new jobs when there are 412,000 people unemployed? Many inventive people who want to start up or expand businesses, even in this terrible climate, are being stifled. Whatever the guidelines or directions, if the Minister does not act to get this off the ground he will have to accept that it is a failure. The banks are running riot behind his back. Their local autonomy is gone. Everything, even a statement, has to be presented with an application for funding and assessed in Dublin where faceless individuals say "No" in practically every instance. The Minister has to intervene to some degree to ensure that resources are made available in this kind of situation.

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