Ivor Callely (Fianna Fail)

I welcome the motion on the development of microfinance. It is important, particularly at this point in our history, that we focus on all areas of finance that might assist the development of enterprise and new initiatives. Small businesses suffer from many disadvantages but they also have a lot going for them. One of the greatest challenges facing small and medium enterprises is the availability of finance.

My colleague, Senator Hanafin, mentioned a figure of €25,000 in regard to microfinance. That amount of money is undoubtedly a help but I would not like to see it become the maximum available under microfinancing rules.

Small and medium enterprises play a significant role in our communities. They are usually more flexible and responsive to economic challenges and their size allows them to make a major contribution in terms of providing job opportunities, particularly in the context of rising unemployment. If we can support businesses through new initiatives which address the disadvantages they face, we should not hesitate in doing so.

The motion and its amendment focus on one sector, namely, the credit union movement. I support the development of the credit union movement, as I do all other forms of financial institutions. If microfinance is to function properly, competition will be required among financial institutions. Limiting the number of institutions might limit the potential for developing microfinance. Equally, it might result in a singular approach to microfinance projects. These two issues jump out at me in terms of developing in one area. I acknowledge that credit unions operate in a competitive manner but there would be more competition if other players were involved.

We have come through a traumatic chapter in the history of our financial institutions. I will not join the chorus of bashing everyone in the financial sector because many fine people work in banks and other institutions. Others have retired from institutions after serving their employers and the country to the best of their abilities. I hope the thousands who still work in the sector will honour our expectations of them by promoting their companies while also supporting communities and small and medium enterprises. The transactions carried out by a small number of people will probably be addressed with a sledgehammer because of the anxiety and upset they have caused. I have every confidence that the Financial Regulator and others in authority are addressing the issues that have been brought to their attention.

In regard to microfinance, the challenges we face in economic recovery and development and support for employment opportunities, I welcome the Government's focus on the smart economy. This comprises everything from the needle to the haystack. Microfinance will be important in terms of creating opportunities in the smart economy.

I also welcome the €100 million fund for enterprise stabilisation and the new central bank commission, which will address many of the issues raised by previous speakers. However, in addition to the enterprise stabilisation fund's focus on vulnerable exporters, we need to support enterprises by developing an accident and emergency department that can assist them with all the challenges they face. Unfortunately, they are faced at present with an array of telephone numbers and people who can offer varying levels of support. While I wholeheartedly support the enterprise stabilisation fund, we must also support new initiatives and small and medium enterprises. In this challenging international economy, many businesses are encountering difficulties.

The code of conduct introduced in a mandatory fashion on small and medium enterprises is to be welcomed. I would encourage all financial institutions dealing with business people on a daily basis to display it in lights in their premises. Some of our financial institutions have a great deal to answer for in respect of the pressures they are putting on people who have helped fuel this economy and whom they assisted in getting into the positions they are in. I attended a tragic and sad occasion last weekend. The pressures which some entrepreneurs are being put under by financial institutions for relatively small amounts of money is an absolute disgrace.

I take this opportunity to state on the record of this House that when focusing on finance, mechanisms, new initiatives and various codes of conduct, we must ensure everybody is aware of the fashion in which they should be applied.