Fine Gael Innovation Spokeswoman Deirdre Clune TD has called on Finance Minister Brian Lenihan to ensure the Irish banking sector adopts a pro-enterprise policy towards small & medium Irish Businesses to help economic recovery.

Deputy Clune is a member of the Oireachtas Committee on Enterprise, Trade & Employment which today (Wednesday) questioned representatives of Chambers Ireland, Enterprise Ireland, the Central Bank and the large Irish Banks in light of the recent Mazars Report on Lending to Small & Medium Enterprises.

Irish banks, both those in domestic and foreign ownership, have over the last decade allowed themselves to be blinded by the property market. Now that property profits have turned to losses, Irish banks need to re-focus on supporting viable Irish businesses and not retreat into a position where they refuse to lend to any business, regardless of viability.

The Irish economy will not be able to begin the long road back to economic recovery without a major shift in the focus of Irish banking. Our banks have been badly stung by an overreliance on property related lending. In response to this some banks have stepped back from lending to any firm. This is having a devastating impact on small & medium Irish enterprises and their employees.

Fine Gael earlier this year launched an 18 point plan to support small businesses and create jobs. Now is the time for the Government and all the banks operating in Ireland to follow this lead and prioritise support for small & medium Irish businesses.

This is not only the first step on our road to economic recovery but it is also the first step to building an economy not dependent on unstable property prices or foreign-owned companies, but indigenous Irish owned businesses built on solid foundations.