Maria Corrigan (Fianna Fail)

I welcome the Minister of State and welcome the opportunity to continue this debate on this important issue. At the outset, I wish to acknowledge the sheer white fury that exists on the part of ordinary members of the public with regard to the banking situation, banks and bankers. I am conscious of the thousands of front-line employees in banks who do the best they can and who perhaps have felt the brunt of this discontent and anger but it is not to them that I make reference. Rather, I make reference to the horrendous economic situation in which we have found ourselves over the past 18 months. Undoubtedly, given the international factors, we would have been exposed to very difficult times but it is clear the reckless and irresponsible actions that have been undertaken by some banks, driven by greed, have exacerbated our problems and have exposed us to incredible damage. They have exposed ordinary families and individuals to incredible anguish, worry and anxiety, whereby they face the threat of losing their family home, of not being able to maintain their payments or even becoming concerned by the thought of a son or daughter returning home from school with a request for funding to go on a day trip.

Undoubtedly, however, the actions that have been taken by the Government to restore banking also are essential. Functional banks are essential to a functional economy and we have no choice. However, I suggest an incredible lack of sensitivity has been shown by those who operate banks for the sensitivities of the members of the public who are feeling the brunt in this regard. I refer, for example, to the contemptuous pay rise awarded before Christmas by one bank to its employees. Although this bank had come to the State seeking financial assistance, when everyone else was being asked to take cuts, not only did it not do so, it actually intended to award pay increases. Moreover, I refer to one of the two main Irish banks and not to Anglo Irish Bank. Consequently, I call on the banks to demonstrate some sensitivity, appreciation and gratitude to the taxpayer for the support they are receiving.

Small and medium-sized enterprises also are essential to our recovery but the banks now have swung to the other extreme in that whereas previously they had any amount of money to hand out, they now have none. Not only are they withholding credit but they are withdrawing credit facilities with the result that small and medium-sized businesses are experiencing real difficulties in surviving. I do not ask any bank to give good money after bad but all Members can provide examples of viable businesses that simply need to be able to maintain their overdrafts or that may need to access a small loan. For this reason, I welcomed the measures that were recently announced and I welcome the additional funding in the form of the €12 billion that will be provided by AIB and Bank of Ireland. I ask the Minister of State to indicate whether the aforementioned banks yet have submitted plans as to how they intend to support the small and medium-sized businesses as they are required to do. I understand the requirement was that they would submit such plans to the Department of Finance within six weeks. Moreover, I welcome the credit review that will give an opportunity to anyone who has been refused credit.

On that issue, the credit review obviously is restricted to small and medium-sized businesses but I wish to speak briefly about families that face mortgage difficulties. I welcome the code of practice that has been put forward by the banks and the prohibition for 12 months on any action to repossess homes. However, the third point of the banks' code of conduct states that where reasonable agreement can be reached between the mortgage holder and the bank, the latter will agree to it. I request that a form of recourse should be put in place for those mortgage holders whose reasonable offers are declined by their banks. While the credit review is in place for business people, no similar measure exists for a mortgage holder who runs into difficulty and puts forward a proposal to the bank only to receive a response indicating the bank will not accept the proposal. At that point, there is nowhere else to go for the mortgage holder. There is no recourse, no independent appeal process and no independent review for the mortgage holder. Consequently, I ask the Minister of State to consider putting in place such a mechanism.