Martin Kenny (Sligo-Leitrim, Sinn Fein)
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2. To ask the Minister for Rural and Community Development if he has received the report from the Department of Finance on the proposals for a model of local public banking for Ireland based on the Sparkasse model (details supplied); when the report will be published; and if he will make a statement on the matter. [25905/18]

Martin Kenny (Sligo-Leitrim, Sinn Fein)
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Many parts of rural and regional Ireland are crying out for a public banking service. It is a model we are seeking to have rolled out as quickly as possible. Has the Minister received the report on this from the Department of Finance and when will it be made public? For almost six months, we have been told it will be published within a couple of weeks. We need to get it done quickly and we need to put plans in place to move this forward. We are always told that a problem with the banking sector is the lack of competition. Here we have a bank that wants to enter the field and we should do everything possible to encourage that and bring it forward.

Michael Ring (Mayo, Fine Gael)
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I thank the Deputy for the question. Officials from my Department and the Department of Finance have been working closely together since last year to investigate the feasibility of a new model of community banking for Ireland, including through the German Sparkasse model for the development of local public banks. The project team carried out detailed research into the concept with a particular focus on the Sparkasse model. As part of its investigation, the project team also met with a number of stakeholders, including the organisation referred to by the Deputy. The organisation in question submitted a proposal to officials of both Departments for a possible model of local public banking in Ireland and this proposal has been analysed in detail.

My Department has also conducted a wider public consultation to seek views on the concept of a community banking model. The invitation to submit responses was open to all and was extended in particular to main stakeholders and Members of the Oireachtas. The consultation ran for four weeks and 16 submissions were received. The submissions have been assessed, and the views of the respondents have been taken into consideration and will be reflected in the forthcoming report. The report has now been completed and the Minister for Finance, Deputy Donohoe, and I submitted it to Government for consideration in recent weeks. I anticipate that the report will be published shortly.

Martin Kenny (Sligo-Leitrim, Sinn Fein)
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While that is welcome news, we have been hearing for a long time about imminent publication. As such, the Minister will understand the frustration that is out there. A large section of the public, in particular in rural Ireland, has seen bank services withdrawn. I have spoken to the Minister about this on numerous occasions as high street banks have closed down all over the country. Not only are banks closing down, small businesses and farmers are finding it more difficult to access loans at appropriate rates. That is the reality for many people, in particular in rural areas. The public banking model is about regionalised banks which focus on the region in which they are situated to provide keen interest rates and look after the people. It is not driven by profit and making maximum profits for shareholders. It is a model which resonates strongly with the public due to the negative experience they have had with the financial sector in Ireland.

I appeal to the Minister to get the report published. We have heard for some time the phrase "in a few weeks". Reading through newspaper articles, I see we have been told the report would be published within a number of weeks on several occasions, including last January, last April and, again, today. We need to get this report published as quickly as possible.

Michael Ring (Mayo, Fine Gael)
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The Minister for Finance and I have agreed the report and we want to get it published as quickly as possible. The Deputy is correct about the financial sector. I am not afraid to say it and have done so on many occasions in the House. We do not have functioning banks for small businesses. We have banks but they are not functioning. As a sitting Deputy, my constituents are coming to me and pointing out that, notwithstanding the fact that they have good collateral, they cannot get loans from banks. That is the experience with the two major banks. I would like competition in the market. We will get the report published as quickly as possible. We are engaged in consultations with other stakeholders and agencies at the moment. We want to publish the report and I guarantee that it will be published shortly.

Martin Kenny (Sligo-Leitrim, Sinn Fein)
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The fear people have is that the other stakeholders are, in the main, the big banks. One of the problems we have in this country is the influence of the main financial services providers. They are a major influence in stopping anybody else from coming into the market. People are fearful that the Department of Finance is somehow or other being influenced by those who are on the field and who want to ensure that no one else gets onto it. I trust that the Minister is doing the right thing and I hope we will see a result soon. I hope that not only will the report published but that a pilot using this model will be rolled out, first of all in the midlands before being extended to eight regions around the country. That has to happen before the end of the year. That is how urgent this is. In particular with Brexit coming at them, businesses cannot continue to survive if they are dependent on the mainstream banks which are not functioning for them, as the Minister has acknowledged. Let us put this in place. Let us give a commitment that the Government will ensure that this model is in place before the end of 2018.

Michael Ring (Mayo, Fine Gael)
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The report will be published and Members can discuss it when that happens. People in this country have suffered because of the behaviour of the banks and we must be careful about what banking institutions we put in now. People talk about the banks every day here. I read only last week in the newspapers about difficulties in some of the financial institutions. The taxpayers of this country have suffered enough. The ordinary citizens have suffered because of the main banks and what they did to the country and its economy. When the report is published, we can discuss it further.