Kieran O'Donnell (Limerick East, Fine Gael)

Does the Minister agree that AIB and Bank of Ireland appear to be more concerned with rebuilding their balance sheets than providing credit to the small and medium-sized enterprise, SME, sector? We hear of countless businesses having their overdraft and working capital facilities reduced. There is an old saying in business, "Cash is king". A profitable business without cash flow will easily go to the wall. A partial loan guarantee scheme will give confidence in business lending. Fine Gael's original proposal of a national recovery bank was based on the fact that the commercial banks had become risk averse. Prior to this, business lending was also very much based on security being provided by property. Does the Minister agree there is a need for a scheme to get credit flowing to the SME sector? NAMA and bank recapitalisations to date have not succeeded in getting credit flowing again. Does the Minister agree there is a need for a partial loan guarantee scheme and a national recovery bank?

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