Banks statement 'in coming weeks'

The Government will issue a comprehensive statement on the restructuring of the banking system in coming weeks, Taoiseach Brian Cowen said today.

Mr Cowen said the intention of the restructuring would be to ensure Irish banks "will at least then be able to access funds from the wholesale money markets" having presented the money markets with a clear picture of their losses on property portfolios.

Mr Cowen said the Government would be making "a very comprehensive statement on the kind of restructuring which will have to take place to send the necessary message both at home and abroad- but particularly abroad - to the wholesale money markets on what the state of play is in the Irish banking system."

Addressing a seminar organised by Bray Chamber in Co Wicklow, Mr Cowen said biggest issue for Irish business was access to working capital and "there is no doubt that restructuring of the Irish banking system is a pre requisite for that to happen".

He told his audience of local business people that the Government was conducting "a very thorough review of the local authority system" which he forecast would result in additional "value for money" measures which would prevent local authorities retuning to businesses for extra funding.

He also said he believed it was "unfair" that rent reviews had resulted in demands for large amounts of money from businesses and noted the changes being made by the Minister for Justice in relation to rent reviews. "Everything that we can do will be done" for small businesses, he said.

But the Taoiseach, who earlier had toured Ardmore Studios in the town, did not respond to pleas from the Cathaoirleach of Bray Town Council to extend the current tax reliefs for film making until 2020.

Such reliefs are seen as crucial to Bray's ability to attract film making, giving it a competitive edge over other worldwide locations, he said. Ardmore, which is part owned by the State is currently in the running to be chosen for the location of a new series on Camelot, following the success of The Tudors which was made there.