Michael McGrath (Cork South Central, Fianna Fail)

Earlier this week, John Trethowan, the head of the Credit Review Office, signalled that the pillar banks, AIB and Bank of Ireland, are in danger of missing their lending targets in 2012. He also said the banks' lending policies need to be reassessed and that they should be prepared to take on more risk. In other words, he confirmed what thousands of small business owners have been saying for some time, which is banks are not fulfilling their lending obligations. The credit squeeze is choking any prospect of an economic recovery in this country.

The latest Central Bank figures show that the mortgage arrears crisis is getting worse by the day. The arrears rate has increased by a staggering 60% over the past 12 months. The Government's record in dealing with this issue has been feeble and ineffective. Both the Tánaiste and the Taoiseach have been honest enough to acknowledge that not enough work has been done. Well they might when one looks at the follow through on the recommendations of the Keane report last September. Only one mortgage to rent transaction has been completed, not one of the 100 promised independent mortgage advisers has been appointed, no split mortgage arrangements have been put in place by the banks and the Government has delayed on a number of occasions the publication of the personal insolvency Bill. Even the Central Bank Governor has expressed frustration at the way in which the banks are dealing with this crisis.

It is the job of the Opposition to hold the Government to account for its handling of lending and mortgage arrears but it is the Government's duty to hold the banks to account for their failure to meet their responsibilities to society and to the economy.

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