Darragh O'Brien (Fianna Fail)

I welcome the Minister to the House. This is a technical Bill, which the Fianna Fáil Party will support. The Seanad deals swiftly with EU related legislation, similar to the way we dealt with the Bretton Woods Agreements (Amendment) Bill 2011. It is important that this Bill is dealt with swiftly. When the group leaders discussed this Bill last week we agreed on the importance of sending out a clear message. The Minister has outlined clearly that Ireland is meeting the stringent targets set under the memorandum of understanding and the revised memorandum of understanding to which the new Government has signed up. We all recognise how difficult it is for our citizens to adhere to the changes in our economic climate and in the standard of living. It is very tough, but regardless of political party affiliations or none, we want to see light at the end of the tunnel. We want Ireland to do well and we want people to have opportunities. We want people who are out of work to be given the opportunity to work.

I have a number of questions which the Minister may be able to answer. It is important that we show solidarity with Greece. We should show solidarity with our European neighbours. The upcoming referendum on the EU fiscal compact is very important and I state unequivocally that Fianna Fáil will be strongly supporting a "Yes" vote in the referendum and will campaign for it also. I wish to convey my concern and that of my colleagues that the waters might be muddied, by linking the treaty to the write down of debt. I do not think the treaty should be discussed in conjunction with future write downs in debt or deals on the promissory notes. It should be clear that we debate what the EU fiscal compact is, what it does, and what it does not do. The Minister for Finance must send a clear message that the referendum is about the EU fiscal compact and not about our promissory notes. Has the Minister an update on how the negotiations are going? The Government seems to be confident that some deal will be done, which is welcome, but we must see the outcome.

In his opening statement the Minister highlighted the positives of our economy. For the 2,500 staff in AIB, today was a very difficult day. In his update on the programme for Government, the implementation of the new structure for Irish banking is mentioned. At the time, I was quite critical of the two pillar banks approach. In light of the discussion on the European banking situation, how can we ensure that we do not create a situation where we have a very strong AIB and Bank of Ireland that are larger than the Irish economy? Difficulties arose due to the size of Anglo Irish Bank and the other Irish banks because they were of absolute systemic importance to the economy. It was a mistake not to let EBS stand on its own two feet and allow US investment in EBS, so that it would be another banking force, a fourth banking force, if we take Ulster Bank into account. While we recognise that we are in a very different situation from Greece, as we have diversified into other markets over the decades, the financial services sector in Ireland has taken a hammering. We have seen that with Aviva, Bank of Ireland and AIB. What is the position with the EBS and its staff? I also want to ask about credit in the commercial sector, an issue that will not go away.

Colleagues across the House have been critical of our two main banks and how they suport businesses. I do not mean to hijack the Minister about it but my party will support the Bill and I hope it will be quickly passed today. Can the Minister update the House on the Government's stance and how it will ensure that AIB and Bank of Ireland meet its targets? We are all aware that some of the new business was based on roll-over commercial loans but written down as new business and overdrafts have been turned into term loans.

We all hope the economy will grow this year and that there will be further growth in the economy. Sustained growth cannot happen without our banks providing financial support to the indigenous business people who will create and sustain jobs. Our multinationals have access to finance but our small business sector does not.

I welcome the announcement of a partial loan guarantee scheme. It will not go far enough but one cannot fix everything overnight. The reality is that our two banks are not lending and stop people applying, as Senator Whelan mentioned yesterday. It is true. They are telling people not to bother submitting their applications for loans so they cannot go to the Credit Review Office, its chief Mr. Trethowan, or the internal appeals office in the banks. This issue is the elephant in the room. We are doing right by Greece today but this is a technical Bill and there is a broader issue at stake.

There will be growth in the economy of less than 1% this year but at least it is going in the right direction. We will not see the economy growing without business and the indigenous business sector being supported in this country.

I reiterate that my party supports the Bill and will swiftly pass it through all Stages today. I wish the Minister the best in his ongoing negotiations with the troika on our loan facility and promissory notes. I have another issue to raise but I will leave it until another day.