Mary White (Fianna Fail)

I hope the Leas-Chathaoirleach will bear with me because I wish to speak about finance for small businesses, which is most important.

As bank credit has plummeted from an annual expansion of 30% in the boom years to zero in recent times, cash and liquidity have dried up. Businesses, particularly larger firms, are increasingly stretching out the days' credit they expect from suppliers, especially SME companies. Many firms are caught in this pincer movement as banks restrict or will not increase overdraft facilities, while at the same time big customers expect more days' credit from SMEs. The net result is that many firms have collapsed or are in jeopardy.

The jobs initiative makes a commitment that €20 billion of new lending will be available from AIB and Bank of Ireland over the next three years to the SME sector, that is, €10 billion per bank or just over €3 billion each year. So far, the business sector has seen little evidence of the commitment made by the banks to the Government to increase lending being reflected in their dealings with their local branch. The plan commits the Department to working out in a transparent way how this new lending will work and I ask the Minister of State to ensure a true picture emerges which is credible to the business community.

The Minister of State is not just given to rhetoric and has first-hand experience of being an entrepreneur. He knows what it is like to keep customers happy every day. I believe 95% of Oireachtas Members do not understand that a business person must keep customers happy and ensure margins to keep the business going. Very few people who speak about business in the Houses have the experience which the Minister of State has. I wish him the best of luck and I look forward to continued dialogue with him.