Brian Hayes (Dublin South West, Fine Gael)

I agree with the Deputy that this is the key test of whether we can get the economy moving again, namely, getting credit out to SMEs in particular. The climate has been challenging given the recent difficulties in the economy. It is a chicken and egg situation. We need more applications to come forward and a better processing regime by the banks.

Some of the advances we have seen during the course of recent months are important and we have recognised that there is problem here for small businesses in particular, but it can be overcome. We now have a common application form across all of the banking sector and the Internet can be used to ensure that applications are made in the most technological advanced way possible. Also, the banks have been instructed to provide training, particularly for SMEs, and such training is important in drawing down the funds required.

This is an issue that the Government has taken very seriously, as the Deputy knows. The Economic Management Council meets on a regular basis with the banks. Yesterday Department of Finance officials had the banks in with them. The Deputy will be aware of the new revamped banking unit in the Department of Finance, which is involved in bilateral discussions with the banks on a weekly and monthly basis to make sure that we can get credit out there.

In the last quarter of last year, we saw some significant improvement in terms of sanctioning. It all very well to say to a small business that the credit is there for it but drawing it down is the key test. I agree fully with the Deputy on that. I reassure him and the House that this is a matter of absolute priority for the Government. Significant progress has been made and we will continue in that vein.

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