Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I am most certainly not satisfied with the pace of resolution. As I stated, the Government, when appointed, examined the mess in the Irish banking system, from which capital was haemorrhaging. Some 250,000 jobs were lost and there was hopelessness, despair and disillusionment in many business circles. This is why the Government acted as it did to restructure, recapitalise and reorganise the banks. The Government consulted the Governor of the Central Bank on the regulatory authority and the requirements to regulate banks and have a code of conduct. As a consequence, the banks were asked to submit, before a given deadline, their proposals to deal with mortgage distress, arrears and debt.

The Government said that we stood ready to give extra authority and powers if necessary.

Only this morning the Minister for Jobs, Enterprise and Innovation signed off on the partial loan credit guarantee scheme following on from the micro-finance agency, which the Government introduced recently so that small and medium-sized enterprises and those involved in business could get credit. The Government has also promoted very strongly the Credit Review Office, which in a small number of cases has overturned decisions of banks not to give credit to businesses in the first instance.

I am not satisfied that the level of engagement for resolution is at the pace that it should be. We have met the banks on a number of occasions at the Economic Management Council. They have been told in very plain English what is the requirement. Banks have responded by saying that they are recruiting individuals who have a competency in dealing with people who are in distress, anxiety and concern. I want to see that happen.

In parallel to what can be done today, tomorrow and the day after, legislation will proceed through the House regarding insolvency arrangements, including debt forgiveness and debt write-downs. The banks know that if they do not deal on a bilateral basis with their clients, those people are going to have the opportunity to have a different structure available to them to bring about a resolution to what is causing them so much stress and concern every day.

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