Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

The Minister for Finance and the Minister for Jobs, Enterprise and Innovation need to act urgently because the banks in this State are actually destroying viable businesses. The Government and its predecessor have poured billions of public money into these banks. The present coalition in its programme for Government and in its so-called jobs initiative has made commitments to make credit more readily available to small and medium sized enterprises. Those commitments have not been fulfilled, however. On the contrary, banks are coming down like a tonne of bricks on viable family businesses, causing untold distress to individuals, throwing people on the dole and further damaging local economies and the national economy. This is not some urban myth of the recession but happening every week. Every Deputy must be aware of it in his or her constituency.

I want to bring to the attention of the Minister, the Dáil and the wider public a prime example of how the punitive and unnecessary actions of financial institutions are causing such damage. Quinn's Superstore in Carrickmacross, County Monaghan, was a family-built, family-owned and family-run retail and service station business. It was very successful and employed 50 people. Begun by Bridie and Paddy Ward, it was taken over by their daughter and son-in-law Brigid and Michael Quinn 23 years ago.

Michael and Brigid grew a highly successful and profitable business. In 2006 they were in a position to take out an €8 million loan from AIB to redevelop their premises completely. A major road works project outside their premises caused serious losses but they carried on. The Quinns were able to reach an agreement with the Revenue Commissioners whereby they repaid almost €20,000 per month to clear arrears. It was at this stage that, having paid over €8,000 per week in loan repayments to AIB over a long period, the family business sought some respite from the bank until it cleared the Revenue debt. The bank, however, refused to listen. The Quinns had to stop the bank loan repayments for three months.

The business began to recover and in December last year the Quinns offered to resume repayments to AIB with an increased figure, over and above the previous €8,605 per week. Incredibly, the bank refused and in January of this year AIB demanded the repayment of the balance of the loan in full and sent in receivers to take over the business.

The Quinns have received widespread support from the people of Carrickmacross, from other businesses in and around the town and, just last week, from Monaghan County Council which adopted a motion of support proposed by Sinn Féin councillors. In spite of this, the family has been locked out of its business, prompting protests, including a sit-in. All of this stems from the punitive action of AIB, its refusal to listen to reason and to see that a successful and viable business, with the co-operation of the bank, was in a position to repay the loan and on better terms than previously from the bank's point of view.

Contrast the treatment meted out to customers by the banks with the revelation that Bank of Ireland is still paying out tens of millions of euro to directors, their families and cronies in privileged loans, as shown in the Bank of Ireland annual report. It beggars belief.

I raise the case of the Quinn family business as typical of others throughout the country. I appeal to the Minister for Finance and the Minister for Jobs, Enterprise and Innovation to intervene in this case with the bank which is effectively owned by the taxpayer. I appeal also for the Ministers to exercise their authority in terms of the policy and strategy of the banks and to call a halt to this type of destructive and punitive approach.

It is time more was put in place to protect people in this position. There needs to be an authority or body which can mediate in this sector, something along the lines of the Labour Relations Commission. That is a proposal we should explore and develop. When the Quinn family was put out on the street by the bank, it had no one to which it could turn for redress. In the meantime, pending the establishment of such an independent mediation service, the banks must be required by the Government to act as facilitators for economic activity and economic growth, not as terminators of viable businesses.

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