Ray Butler (Meath West, Fine Gael) | Oireachtas source

I thank the Minister of State for his response. I welcome what is being done by Government, including the roll-out of the new credit guarantee scheme today and the introduction of the microfinance loan fund. However, Ms Fiona Muldoon, director of credit institutions and insurance supervision at the Central Bank, said that she believes a culture of leadership is missing in Irish banks. The secretary general of the Department of Finance also said that banks, in terms of lending decisions, are looking for miracles to happen and are closing shop, waiting for the Central Bank or Government to bail them out or for a national recovery.

I am visited every day at my constituency office by people operating small and medium-sized businesses who have obtained a structuring of their loans by the banks and are repaying these loans. However, because they are outside the original terms of their overdraft or loans, this is viewed as a mark against them in terms of getting further loans. The Irish Credit Bureau dealt with only a minuscule 760 cases because the banks will not even give out application forms for credit. If one cannot get an application form, one cannot be refused. Many of the banks will not even answer telephone queries from small and medium-sized businesses.

I was recently visited by a gentleman from Navan who employs nine people in his factory. Despite that he is paying his way, has restructured all of his loans, has €200,000 on his books and could employ ten extra people tomorrow, he cannot obtain finance. The Irish Credit Bureau served its purpose during the Celtic era. However, it serves no purpose now. It is not fit for purpose in a recession.

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