Joe O'Reilly (Fine Gael)

The most serious matter confronting the House and the country today is the recapitalisation of the banks. Unfortunately, I have received practical information over the past couple of days at home to back up what I will state and I want the Leader of the House to take it on board. At present, the banks are solving their problems on the backs of small businesses. They are ignoring the reduction in ECB rates, removing overdrafts willy-nilly to pull in cash and increase charges and cutting off credit to small businesses. On a recent "Prime Time" programme a Mr. Wallace openly admitted — fair play to him for his courage — that he is among a number of developers who are not paying interest rates to the banks. It is a disgrace that our banks are solving the problems they created by exploiting small businesses, consumers and individuals. It is an extraordinarily serious matter and I have example after example of it from local constituency work.

It will not be acceptable if we get an aspirational statement on foot of the next recap of the capitalisation matter. We need practical detail on how the banks will give credit to small businesses and how they will stop exploiting small businesses by refusing to pass on interest rate reductions and putting all sorts of bizarre charges on small businesses. Our banking charges and interest rates are among the highest in Europe. This is most unacceptable and needs to be sorted out in the short term. If we do not get a result on this and get a very clear policy statement, a statement on what will happen rather than aspirations, the recapitalisation should not continue.

It is not enough that we get symbolic gestures such as the removing of bonuses, reduction of salary and removal of certain directors and staff members. That is fair enough, that must happen, but that is for optics. There must be proper treatment for the consumers of the banks, such as ordinary business people who are trying to make a living and create and keep jobs. That must happen. I thank the Cathaoirleach for his indulgence on this serious issue.

I second the proposition of the leader of the Opposition, Senator Frances Fitzgerald, with regard to energy charges, which are criminally out of joint at present.