Enda Kenny (Mayo, Fine Gael)

There will be a discussion on that matter later, to which I assume the Deputy will contribute, although I do not know if he will have anything different to say. It is necessary for us to be involved in this structure because we are the recipients, through the covered banks, of €110 billion to run services. We are faced with this problem because of the extensive recapitalisation of the banks at high interest rates prior to the ESF and the ESM and the need to close the deficit which will not close by itself despite the fact that the Deputy believes it will.

I note Christine Lagarde's comments. She is a good friend of this country who has made it perfectly clear that there is a need for strong leadership at European Union level and adequate firewalls to be built in, particularly in her comments in respect of Italy where Prime Minister Monti is making huge strides and also in respect of Spain. Former Commissioner Fischler said yesterday that the implications were clear if we decided to go down the road towards default.

The Deputy will recall that a number of weeks ago a figure of €17 billion was provided for in the capital programme. The Department of Jobs, Enterprise and Innovation is one of a few in respect of which an increase was provided for because of the requirement for job creation and the importance of innovation and research and what could emerge from them in terms of job creation. The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, is well down the road in introducing legislation to deal with the issue of credit access and partial guarantees in order that people can access credit from banks, which is crucial in terms of what we must do.

The Economic Management Council which I chair will shortly meet the banks for the second time for a frank discussion on bank lending policies. I have heard stories from many small businesses which have not been able to access credit. We must deal with this issue. The two covered banks, Bank of Ireland and Allied Irish Banks, have signed on to lend €3.5 billion in 2012. The Government wants to see this happen for small businesses. I do not know if the Deputy often has an opportunity to travel outside his constituency, but perhaps he might undertake a tour of the country to speak to those small and medium-sized enterprises and hard-pressed retailers who cannot access the credit they need.

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