Micheál Martin (Cork South Central, Fianna Fail)

The European Central Bank pumped an extra €529 billion into the EU financial system yesterday. That brings the total amount that has been invested in the three-year programme to more than €1 trillion. Up to 800 banks across Europe have taken advantage of the programme. At a macro level, this initiative of the ECB has been described as a game-changer. In reality, it has not filtered down to the real economy. Businesses up and down the country are finding it practically impossible to access loans or proper credit facilities to enable them to protect existing jobs and create new ones. The absence of credit is causing businesses to reduce their workforces. In some instances, they have to close down altogether as a consequence of the failure to get credit.

Two days ago, the Taoiseach told the House that the Government intends to meet the banks "in a couple of months" to deal with this problem. According to the Credit Review Office, credit targets are being met. Its calculations are based on credit approvals, rather than actual credit drawdowns, and take account of the restructuring of existing loans, as opposed to the provision of new credit facilities. Even though bank deposits are stabilising and the banks are getting access to critical finance from the ECB, the banks are being far too rigid and inflexible. Every Deputy in the House can cite examples of small businesses that are unable to access credit. Many companies are in dire trouble as a result of the tightening of credit across the country. In light of this critical problem - not to mention the pressure on mortgages - is it any wonder that the domestic economy is flagging? What does the Government intend to do to alleviate the shortage of credit? In particular, what will it do to get the banks operating properly in the interests of small and medium enterprises and the broader interests of the economy as a whole?

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