Enda Kenny (Mayo, Fine Gael)

The Deputy is absolutely upfront here. Umpteen cases of people who cannot access credit - they have been turned down by their banks - have been brought to my attention. When they are asked about making an appeal to the Credit Review Office, some of them say they do not want to get into a bad situation with the local bank manager with whom they are dealing. When one talks to the banks, one is told that some businesses come in without a projection of what their cash flow might be. Previously, one could be sure that the banks would give it out against the property. It is fair to say this is a central issue in this regard. Small businesses around the country are willing to borrow for employment and export purposes. Enterprise Ireland is pushing very hard for new entrepreneurs, new innovators and new developers to get into business. Such people require financing. Yesterday, for the first time in a while, I spoke to a bank manager who had given a loan to a small business. The business in question is taking on 15 new employees and hopes to expand further in the coming period. It is important for that manager and his colleagues in the bank to be able to say publicly that they believe in a business and are prepared to lend money to it. That will reassure anyone who is listening that the bank is open for business and offering packages to those who are interested.

I am not a proponent of the banks. I have had strong differences of opinion with them. As Deputy Martin is well aware, we need a banking system that actually works. Bank managers should be authorised to do the job they are supposed to do, in conjunction with business people. They need to manage mortgage distress and arrears and facilitate business opportunities. If we do not have thriving small and medium sized enterprises, we will never have the kind of country that Deputy Martin and I know we can have. The banks have told us at the economic management council that their own credit and micro-finance operations are proceeding in parallel with what the Government is doing. They are engaging in discussions with people who have distressed mortgages, in line with the Keane report and in the context of the personal insolvency proposals.

The meeting I have mentioned was constructive. Representatives of a number of banks from various parts of the country gave evidence to the effect that there are signs that things are beginning to move in some sectors. There is a very long way to go. I have heard reports that suggest the housing floor has not yet been reached. People will wait for a further period to see what happens. In the recent past, I have met a number of solicitors who have finalised transactions regarding the sale of houses. I hope the banks will be willing to come back in again in a couple of months to review the progress that is being made. I hope the House will have made further progress with the implementation of the Keane report and the personal insolvency legislation. We want the banks to sit down with people who have mortgage arrears to decide how to work this out. The banks are aware that they have been recapitalised to deal with significant numbers of such cases.

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