Seanad debates

Wednesday, 11 October 2017

10:30 am

Photo of Paul DalyPaul Daly (Fianna Fail) | Oireachtas source

I raise this morning the need for the Leader, with his colleagues in Government, to take immediate action on the entire banking system of the country. I welcome a number of initiatives in yesterday's budget, including the housing strategic investment fund towards which the Government is putting €750 million and the announcement of the new Brexit loan scheme on the back of last year's budget's affordable loan scheme. We are like the mother trying to cajole her young child into eating his dinner with the spoon being an aeroplane. We are having to put funding into the banks to compensate them to reduce their interest rate to make these loans available for the people. We bailed out the banks. We will still be paying for that exercise for many years to come. We were told at the time that an effective functioning economy would not work without a banking system and yet we are, like the mother trying to cajole or cod the child into eating his vegetables, trying to persuade the banks to act. We are having to put incentives before them. We are having to put in funding to compensate them to reduce their interest rate. All the while, they are avoiding taxes - it was well documented recently - and hammering those who were on tracker mortgages. As my colleague, Deputy Michael McGrath, stated, they are now saying it was a mistake they made but, coincidentally, all the pillar banks happened to make the same mistake involving the same vulnerable sector at the same time.It is about time the Government introduced the necessary legislation. The banks need to be hauled in. They need to be doing the banking, not the Government.

The measures in the budget are very welcome. They are needed to stimulate areas that need stimulus, but we should not be putting money into loan schemes. Last year, the affordable loan scheme for the agriculture sector in particular was introduced. The pillar banks were signed up and I know for a fact that while a number of them just ticked the boxes to keep the Minister happy for the affordable loan process, they then gave short-term stocking loans as opposed to what the scheme was intended for and got their money back within a year. They had ticked the box for the Minister and moved on. If a proper banking system is working in any economy, they should be providing the stimulus.

We talk about health services. I am aware of a primary care unit, which is badly needed, that is ready to commence. Everything is in order in terms of all the parties involved and planning permission, but the bank is not playing ball. It is time that we hauled them over the coals and whatever legislation is needed is introduced to ensure we have a proper functioning banking system, not fancy buildings with counters people are not allowed walk up to.

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