Enda Kenny (Mayo, Fine Gael)

We cannot have a sound economy without small businesses. Three years ago, 800,000 people worked in the small business sector, in tourism, services and manufacturing. That number has declined to 700,000 and on current projections is likely to further decrease to 600,000 next year.

The banking strategy set out by the Government has failed in so far as small businesses are concerned. The Taoiseach said that we will write whatever cheques are necessary. Those cheques have thus far amounted to €74 billion in taxpayers' money. When the guarantee scheme was introduced, the Minister for Finance stated that the Government is deeply embedded in the banking sector and, as such, would bring leverage to it.

The Minister also asserted that NAMA would bring a wall of cash for credit. On 17 December 2009, the Taoiseach stated: "Passing the legislation will cleanse the balance sheets of the Irish banks and so enable them to increase the provision of credit which is their core role in the economy." These words were not true. I reminded him on that occasion that NAMA was a secretive and politically directed work-out for banks, developers and speculators which would do nothing to address the fundamental issue of getting credit flowing. It was the most costly and riskiest solution for the Irish taxpayer and it was deeply unfair.

In light of the comments made in the past few days and again this morning, does the Taoiseach accept that his Government's banking strategy in regard to providing credit on proper terms to small businesses has failed and, as a consequence, the Irish small business sector is facing destruction? The Government can respond to this if it has the courage to do so.

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