Lorraine Higgins (Labour) | Oireachtas source

I thank the Minister of State for his answer and acknowledge all of the efforts being made by this Government. The creation of 61,000 new jobs last year, so soon after taking office, is indicative of the success of its policies. However, we all know of small businesses in towns and villages all over Ireland that have closed down as a consequence of the recession. I am trying to draw a parallel with what happened in the 1980s. At that time, ICC bank and ACC bank were operating here and had targeted lending structures for the agricultural community and the SME sector. I am opposed to the funds that are potentially coming from Germany through KfW going into our pillar banks which have legacy issues vis-à-vis their customers. We need a third force in banking in this country and the Government needs to create that. That would really assist all of the ancillary work that has been done by the Government, as outlined by the Minister of State. We need fresher thinking in the context of granting loans to business people. We need to move away from bricks and mortar security and ensure that the viability of any business is assessed on the basis of its business plan and not on whether it has 30% or 33% of a deposit to invest in a building. We need properly focused business banks and that is the nub of the issue.