Tony McLoughlin (Sligo-North Leitrim, Fine Gael)

I welcome this brief opportunity to speak on this motion. All Deputies could give first-hand accounts on how many of the banks are dealing with constituents but the verdict would not be good. I refer to the wording of the Fianna Fáil motion - "the lending performance of the banks is currently being measured by the amount of new credit sanctioned rather than the amount actually drawn down and put into circulation in the economy;". A recent Mazars survey, commissioned by the Department of Finance, has shown that demand for credit is low. However, this may be because many people do not bother to ask for credit as they believe they will be refused. The perception is that the banks are not giving out money. This perception needs to be changed. The only way a bank can make money and profits is to sell money and if this is not the case, they are like the proverbial pub with no beer.

Many banks were not part of the bank guarantee and they do not impress me. Some are half out the door, so to speak, while others operate as cashless banks, even though they are what are termed as high street banks. I know of one case in which one of these banks refused to issue a quote for a mortgage to a customer despite the fact that he had paid off an existing loan on a house which he had sold. He had been with the bank for more than 21 years, covering two mortgages. He had never missed a payment, was debt-free yet he was not even given a quote. I ask why is such a bank operating in this country.

A constituent told me about his experience in seeking a mortgage of €110,000 on a house valued currently at €320,000. The bank has taken more than three months to make a decision in this case and will now only grant him a loan of €90,000, well below the required amount, despite his large income and debt-free property worth €500,000 at current valuation, offered as security. Many similar cases have been brought to my attention as a public representative.

Banks such as the Bank of Ireland are making efforts and are to be commended. The Government's lending target for 2012 is €3.5 billion. I ask for a report from the banks next year on the delivery of this amount and a breakdown of how the money was loaned within communities.

I commend the Minister for Finance, Deputy Noonan, the Minister for Jobs, Innovation and Enterprise, Deputy Richard Bruton and the Ministers of State, Deputies Brian Hayes, and John Perry, on the measures introduced to ease the difficulties such as the establishment of the Credit Review Office, the SME regional workshops and the recently announced details of a micro-finance loan scheme and a temporary partial credit guarantee scheme to assist viable SMEs on the margins of commercial lending decisions to access additional credit. I welcome the initiative by my constituency colleague and the Minister of State with responsibility for small business, to hold a series of regional meetings with the Department of Finance Secretary General to hear at first hand the views and experiences of local business representatives, banking representatives and State agencies, on access to bank lending. This is a very positive step by the Government and I appeal to the SME sector to use this opportunity so that it will give the Government real information which will ensure some banks will be challenged on their current assertions that they are lending.

I appeal to accountants, in particular chartered accountants, to ensure their clients put together the best possible business plans and that they become involved directly with Credit Review Office if they believe their respective clients are not getting fair treatment from the relevant bank.

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