Dan Neville (Limerick, Fine Gael) | Oireachtas source

I welcome the opportunity to discuss this important issue relating to the future of our country, our people and employment. While we are creating jobs by attracting investment from overseas there is a gap in respect of the creation of jobs in small and medium sized businesses and indigenous businesses. Credit for such firms is vital to maintain and develop business and to create employment opportunities. It is important that all feasible businesses in the country should have the opportunity to access sufficient funds to meet their enterprise needs because that approach supports growth, employment and economic development. One of the key issues is economic growth and the small and medium-sized enterprise sector has a key role to play in creating the economic growth which is necessary for the future.

The role of the banks is vital; they have a key role to play in making credit available to support economic recovery. Let us consider the role of the Credit Review Office, which was established to help SMEs or farm borrowers who have had an application for credit declined or reduced and who believe they have a feasible business proposition. The promotion of the office is not strong enough. Everything possible should be done to promote the office now that the upper limit has been increased from €500,000 to €3 million. That is a significant development in respect of the role of the office in the credit situation.

It is interesting that 55% of those who requested a review have had their applications overturned. This should be seriously examined. Why are such a high number being overturned? What are the different criteria applied by the banks and the Credit Review Office? Is better communication possible between the banking sector and the Credit Review Office to inform, advise and perhaps put pressure on the banks to apply similar criteria so that people can secure credit? It is important that the workings of the Credit Review Office are recognised. We would all like complete success but the office must build on the success it has had and encourage people who have been refused to obtain advice and discuss the matter to establish whether the case can be re-examined.

The motion calls for the introduction of a strategic investment bank. The Government has committed itself in the amendment to creating a strategic investment bank to provide finance to large capital projects. It will also fund small and medium enterprises. A level of urgency should be introduced to ensure such a bank can be introduced to play a role. As the last speaker said, we must never again have the experience that we have had.

Those of us in public life with constituency offices at the coal-face have a feeling for how desperate many people are. What are the main issues on which we are asked to make representations? I am unsure whether I share this with others but in the main the requests relate to medical cards and social welfare issues, whereas some years ago it was mostly planning and other areas, including housing and so on. Those have gone down the list now and the other issues have been resurrected. That is an indication of the change.

We have seen young people emigrating and we are seeing the devastation that unemployment is creating for people at home. We have seen businesses crash. In a debate on mortgage arrears on 10 July, I raised the issue of the distress that those in serious mortgage difficulty are enduring. I consulted MABS on the issue and therefore my views were not simply hearsay. My statement was based on research done by MABS in this area. I stated, "Most of the people involved, although not all, are male clients of the banks who are dealing with debts that are out of control". I further stated, "People who are in long-term distress are tired and weary, lack confidence, have lost self-esteem and have lost hope". These people are not in a suitable state to negotiate with the banks. I am hearing from more and more people in difficulties with the banks. The come to me not to sort out the difficulty but to know whether I can get the banks to discuss solutions to their problems on a face-to-face basis.

See this speech in context