Brian Ó Domhnaill (Fianna Fail)

Tá lúcháir orm go bhfuil deis agam trathnóna cúpla focal a rá faoin Bille seo, Bille a bfhuil cuid mhór obair agus saothar curtha isteach ann ón Roinn Airgeadais agus, go háirithe, ón Aire. Ba mhaith liom buíochas a ghabháil leis an Aire as an obair atá déanta aige le níos mó ná bliain anuas anois chun airgead a chur ar fáil arís do gnóthaí, títhe, agus daoine uilig an Stáit.

We are here to discuss a Bill which will bring about unprecedented change in banking practices here. I note the work of the Minister in the past 14 or 15 months, from the bank recapitalisation scheme last year through to the work done over the summer on the NAMA legislation. We all hope this legislation will facilitate the flow of credit to SMEs, protect homeowners and allow ordinary Irish people to obtain credit again from financial institutions, the international reputation of which is damaged. The heads of these institutions should hang their heads in shame. Without question, there was malpractice and unethical behaviour and the corporate governance of these institutions was questionable. The Financial Regulator was certainly asleep at times at the wheel. As a result, in recent years people were able to get 120%, 130% and 140% mortgages which also perhaps paid for one or two cars and several holidays abroad without question from financial institutions which existed to protect the consumer as well as to provide credit. While they provided credit, they did not lend protection to the consumer. There was an onus on them to do so but they failed miserably in that regard. As a result, we must bring forward this legislation to protect the people whom the Government must govern, to work with citizens and to ensure credit flows again through every townland in the country. We are in a stagnant position. As a board member of Údarás na Gaeltachta, I deal with many companies every week which want to create employment in Gaeltacht areas. They cannot obtain credit from financial institutions because the banks maintain that their balance sheets are damaged. The Minister and the Department have recognised that they are damaged, which is why we are proceeding with the Bill which will reform the way in which credit can be made available again.

The banks assisted by the bank guarantee scheme, AIB and Bank of Ireland, were obliged to provide 10% additional lending over 2008 figures and lend an additional 30% to SMEs. While national figures may show they are doing so, I do not believe them. They are producing figures that are not wholly correct. I have spoken to many managers of SMEs in County Donegal who have gone to their local bank branches or regional managers. I am not sure whether their cases have been presented to head office in Dublin or whether they have been filtered out. The banks may say they are funding 80% or 90% of credible businesses but they are accepting only a few of these applications. That is a matter for the Financial Regulator who has a responsibility in that regard, particularly in the light of this Bill which is being brought forward to protect and improve the banks' balance sheets and ensure credit flows again.

I am heartened by the fact that the IMF, the ECB and the OECD support this legislation. We all must take comfort from this and realise that if it receives such widespread support, it is a path that will ensure Ireland will receive a stimulus again and that ordinary businesses and homes can receive the credit they once had. There is a small enterprise in my constituency which exports products to the United States and has a reasonable turnover. It is supported by a grant agency in the county which suggests the business plan is attractive. Last week, however, Bank of Ireland refused it an overdraft facility of €1,500. That is a disgrace. The local bank manager maintained that the bank had very little comfort and was not in a position to approve the facility but that the application had to be processed centrally. That is why I support NAMA because it will allow the flow of credit to filter through to those SMEs which are trying to create employment, manufacture and export products. We must allow these businesses the opportunity to go to the banks with clean balance sheets and which can borrow at a lower rate. That is why I am signing up to NAMA and backing the Minister. I thank him for the work he has done.

I could not speak this evening without referring to the pay increase in one of the institutions Senator McDonald mentioned. If that is occurring, it is unacceptable and the Minister needs to inquire into the matter. People in senior positions in the banking sector must never again be given the latitude that they received in the past decade. The expertise on the new boards will play a significant role in scrutinising what is happening within these institutions. With the Financial Regulator, they have a responsibility to ensure corporate governance is a central element in their future development. The taxpayer has supported their recapitalisation and will support NAMA through the bonds that will be made available. The banks, therefore, have an onus and a responsibility to ensure credit flows to small businesses. The objective of the Bill is to assist in that flow of credit. Will the Minister monitor this to ensure we can regain international competitiveness and again export products to America and elsewhere in Europe, including the United Kingdom, economies with stimulus packages? It will mean jobs, particularly for future generations, will not only be protected but also that new ones will be created.