Mary White (Fianna Fail)

I welcome the Minister of State, Deputy Calleary. Outside of the resolution of the banking crisis, the two most important issues for this country are the retention of existing jobs and the delivery of public sector reform. As these constitute part of the Minister of State's new brief, I wish him the best of luck. I know he will be extremely successful.

My overriding concern during the financial crisis has been the maintenance of existing jobs and the creation of new employment. The protection and creation of employment are dependent on credit being made available to viable businesses, particularly small and medium size enterprises, SMEs. The latter will be crucial in leading the way out of this recession.

The measures announced by the Minister for Finance, Deputy Brian Lenihan, yesterday will place the banks in a much stronger position than before. Specific lending targets have been imposed on AIB and Bank of Ireland. Both will make available at least €3 billion each for new or increased credit facilities for SMEs in 2010 and 2011. This allocation will include funds for working capital for businesses. It represents a significant increase on the 2009 figure and will assist business development. Bank of Ireland and AIB will also be required to make available €20 million each for seed capital for ventures supported by Enterprise Ireland. Such ventures will be vital in supporting new opportunities. Each of the banks will also establish a fund of up to €100 million for environmental, clean energy and innovation projects. This is in addition to the €100 million provided under the recapitalisation last year.

In his statement to the Dáil, the Minister recognised that Irish banking has been overly focused on property-related lending and has not engaged in an adequate fashion with modern economic sectors. He has now set out targets for the banks to work with Enterprise Ireland and the Irish Banking Federation in order to develop a full range of banking services and to make available new credit products to the modern and innovative growth sectors of the economy. Everyone is aware that small and large businesses, sole traders etc., cannot obtain access to cash or credit for current expenditure or investment purposes.

I am pleased the credit review process previously promised by the Minister for Finance has been set in train since yesterday. As the Minister for Finance informed the Dáil, AIB and Bank of Ireland will be subject to this process, which will be headed by Mr. John Trethowan and which will allow individual enterprises, sole traders and farmers who have had credit refused or withdrawn to apply for an independent review of the bank's decision. Where the reviewer recommends that credit should be granted, the bank is required to comply with the recommendation or explain why it will not do so. This process will also provide an accurate assessment of banks' lending policies and procedures. The administrative arrangements are already in place and the relevant statutory instrument was laid before the Dáil yesterday. As a result, applications for reviews can now be made.

The credit review process will give viable businesses in all sectors an opportunity to obtain an independent second opinion where credit is refused or withdrawn. The review will ensure the banks, which have been supported by the State and the taxpayer, comply with their responsibilities to the economy. Mr. Trethowan will outline his work in this area later in the week. Representatives of ISME and the Small Firms Association, SFA, and members of the general public state on radio each day that the banks are not making cash available to them. In such circumstances, I am delighted with the establishment of the credit review process.