John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

The report included all banks. We must remember the main players for small and medium-sized enterprises are Bank of Ireland, AIB and Ulster Bank. The report included all banks, including those which do not fund small and medium-sized enterprises.

Deputy Wallace made a point on an investment bank. Years ago the ICC bank was very effective and had a niche market for business. The State practically owns one bank and is a major stakeholder in another and one must see them in operation first. The Taoiseach and the Minister, Deputy Bruton, are putting considerable pressure on the banks. We must remember that to make money banks need good small and medium-sized enterprises. How else will they make a profit for their shareholders? Last week, Bank of Ireland advertised enterprise week throughout the country. Perhaps the bank gave people ten reasons it could not give a loan, but it invited business people in to make loan applications and AIB is doing the same. We are taking the banks at their word that they are facilitating small and medium-sized enterprises. Banks want successful business people and we are clearly benchmarking the banks on this to ensure they support viable small companies in the micro sector. Enterprise Ireland's high potential start-up unit has an in-house bank adviser, and big companies have ways of obtaining money.

To respond to Deputy Calleary's point, retail services are under huge pressure at present. The easiest way to give a loan at present is to increase the overdraft of a business person by €50,000 because after two years, this overdraft will be a long-term loan. Business people may be sorry they obtained an overdraft because it becomes a long-term loan. In certain cases people are extending credit limits for suppliers and it is very difficult.

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