Seán Sherlock (Cork East, Labour) | Oireachtas source

It is hard not to agree with the points made by the Deputy in relation the banking sector. A distinction must be made between businesses seeking to restructure loans in order to survive and retain their viability and loans generated for new business. I refer the Deputy to the Action Plan for Jobs 2012 and the third progress report which states that the Department of Finance published the SME lending demand survey in July. That survey of 1,505 companies shows that during the six month period surveyed demand for credit remained low, with only 38% of SMEs requesting bank credit between October 2011 to March 2012. The full survey and findings are available on the Department of Finance website.

I take on board the points made by the Deputy in relation to the person referenced specifically by him. I believe the Taoiseach addressed that point today during Leaders' Questions. This is about driving new relationships between Enterprise Ireland and the pillar banks.

The Economic Management Council has already indicated it will meet the pillar banks before the end of the year. There is no question that there is a sense the banks are not coming forward with proposals based on a lateral view of how to solve the problems of the person referenced by the Deputy who may have a viable business. The Government is trying to press home this point to the banks. There is a role for the Economic Management Council. The two initiatives, on micro-enterprises and the partial loan credit guarantee scheme, will create a new pillar of lending and will be government backed. This will have a knock-on effect on the SME sector of the economy.

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