Enda Kenny (Mayo, Fine Gael)

The Economic Management Council has met with the banks on a number of occasions. On the last occasion we had a series of questions about SME credit, including how banks are ensuring that their targets will be met, whether they are taking practical initiatives to assist SMEs in obtaining credit, and whether they show a willingness to implement and support the Government's initiatives as set out in the action plan on jobs. There was also a discussion on the Government's proposed microfinance agency and the partial loan credit guarantee report on freeing up access to credit for small businesses.

With regard to mortgage credit, we asked how banks were ensuring that credit is available to support the Government's budget initiative on first-time buyers, whereby they will have access to mortgage interest relief this year and for years to come if they buy in 2012, but not if they buy in 2013. We asked what checks and balances there are to ensure that conditions on mortgage credit are fair, balanced and not unduly restrictive. We also asked the banks for an analysis of the differences in what is happening in the various regions. In some parts of Dublin city house prices have begun to rise to a small extent, while in other areas prices are continuing to fall or there is a slight fluctuation.

We want to see banks supporting the mortgage interest relief initiative. We sought examples of how banks were dealing with difficulties in regard to mortgage arrears, asked whether they were sitting down with customers to work out solutions in these cases, and asked about their implementation of the Keane report.

At the last meeting, we indicated that we intended to publish the Personal Insolvency Bill and two days later the banks came out with a range of facilities they were offering. That is part of a regular process of meetings with the banks to ensure that the focus is kept where it should be. The pillar banks are both committed to lending €3.5 billion of new money this year. That is for approval for new loans as distinct from loans that are not drawn down. I hope the banks will keep to those targets.

Banks have been encouraged to get back out into the workplace and inform people that they have money to lend, which is available under the normal rules. The Deputy asked for examples of the types of business that have been funded by banks. While funding is not as extensive as one would wish, it is beginning to happen. I hope that will continue. It is a measure of the confidence that is returning to the indigenous economy, which has been very flat for quite some time.

In moving around the country, I have seen that in general the number of new business start-ups is quite encouraging. I know that some businesses have gone to the wall but there are also people who are putting their money where the challenge is. They are measuring up and starting off new small and medium-sized businesses. It is great to see people who are prepared to put their own money into initiatives where they can get access to credit and employ up to ten people where they see such opportunities.

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