Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Deputy raised issues around the banks with me a number of weeks ago and I met the CEOs of the banks again, along with the Taoiseach, a number of days ago. I want to re-emphasise to the Deputy that it is critical that a number of things happen during this period. First, if breaks are being entered into, as they are for over 40,000 loan owners, everybody must be clear on what that break entails, so that those who are receiving the break and those who are administering are completely clear on what their commitments will be in the coming months and years. Second, across that period and this period, nobody should be profiteering from what is happening. The early signs are that will not be the case because of the degree of loss our banks are already experiencing.

Regarding the questions the Deputy put to me on the relaxation of state aid rules and the engagement we have had with the banking sector on how money can flow directly to SMEs, we are engaging with the banking sector on that point. As the Deputy will be aware, the Government made a decision to say we are preparing legislation on a credit guarantee. We are looking at how that credit guarantee has been rolled out in other countries and at how we can ensure that when we make this available in Ireland, we will have the balance right between protecting the taxpayer, which I know the Deputy will want to do, and in getting the decision right so that credit flows to the SMEs on terms that they would want. I apologise to Deputy Michael Healy-Rae but I will be brief on this. State aid rules have been relaxed by the European Commission and I am not aware of how their current status would affect our ability to lend to the agricultural or horticultural sectors, but if the Deputy could give me the detail of what she is referring to I will follow up on it for her.

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