Fidelma Healy Eames (Fine Gael)

The Minister is welcome. This is one of the most positive moves we have had for a good while in terms of helping SMEs. The Bill will help small businesses across the country to access credit and create jobs. Let us face it, the pillar banks have let down SMEs. Despite the fact they have been capitalised with that purpose in mind, we know there is not enough evidence of them doing it. What they have been doing, in fact, is inviting people in and converting their overdrafts into term loans, thus cutting off the supply of credit.

I am delighted to welcome the Bill, which was published recently by the Minister of State, Deputy Perry, and the Minister, Deputy Bruton, and will make it easier for SMEs to access credit and thus create jobs. We know that access to credit is the biggest single challenge facing businesses across the country, SMEs in particular. Every week, I meet local business people in Galway who express their frustration and dismay at their inability to access credit from the banks. We know SMEs need a reliable stream of credit to function, particularly in the current trading environment, and this will assist in tackling the problem.

A number of years ago, I learned about an approach, for example, in Germany, whereby the government backs the business, not the bank. I have been watching this model for some time. I am delighted that we are considering this here and I believe that to back 75% of the loan requirement is fantastic. Unfortunately, once our banks come under pressure, they get nervous. Just when we need them, they let us down. Quite seriously, one would be inclined to say "What a useless bunch". This is when we need them to show their mettle and to say "I see potential in your business. I believe in you, the person, and your reputation will be trusted", but no, they have always had the reputation of calling in the loans or just refusing. Fair do's to the Government. I know Senator Ó Clochartaigh is gone but I wish to God-----