Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

I move amendment No. 5:

In page 7, between lines 34 and 35, to insert the following:“(5) (a) The Minister shall work with his colleague in the Department of Finance to facilitate a role for State promotional financial institutions such as the Strategic Banking Corporation of Ireland in the scheme in order to enhance the provision of credit to SMEs directly.

(b) The Minister shall be empowered to give counter-guarantees designed to enable State promotional financial institutions access to match guarantee facilities from EU funding sources such as Horizon 2020 funds earmarked for SMEs and the European Fund for Strategic Investments.”.

This amendment is similar but slightly different. Picking up on the Minister of State's comments about the strategic banking corporation, the commitment he gave as a member of the Labour Party and that was given in the programme for Government - remember that - was that a State bank would be established which would be a separately functioning business bank to lend directly to enterprise. Instead, we got the SBCI which is a far fluffier version of what was proposed.

What we need is something to challenge the very cosy consensus that now exists between our remaining banks around business services. That cosy consensus has resulted in business banking fees being the highest in the eurozone, and in services being withdrawn. Those in the service or retail sectors in towns across the country are being told on what days they can and cannot lodge coin. That has knock-on consequences for security. The price of lending and asset financing in this jurisdiction is far higher than in other eurozone countries, and this is directly because of a lack of competition. What the SBCI should be doing is challenging that lack and breaking the situation up. What it is actually doing is making the situation even cosier by lending through the existing pillar banks and directing businesses to go to those banks that have let them down in the way that they have.

The SBCI needs more teeth. It is certainly beginning to have an impact and I give it credit for that. However, its role as an agent of the existing pillar banks is hampering its standing and its ability to do what we want. We need the commitment in the programme for Government to be honoured in the form of a separate, State backed enterprise bank out there fighting on the streets.

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