Enterprise Ireland to give banks business expertise - Coughlan

ENTERPRISE IRELAND is to make business experts available to banks to provide “greater acumen and support business”, Tánaiste Mary Coughlan told the Dáil as the Opposition highlighted more cases of banks failing to provide finance for small firms.

Ms Coughlan said it “is a matter of concern that some of the banks do not have a business acumen”, and the State job creation agency would introduce a “most important initiative” to improve business support.

The Minister was responding to Labour enterprise spokesman Willie Penrose, who highlighted that a Bank of Ireland branch had failed to provide €3,000 to a Westmeath company, an amount which he said, could help provide an extra 12 jobs.

Mr Penrose stressed that “12 jobs in a rural area is worth 1,200 in a large urban area”. He said the business changed from sole trader to limited company and sought a €3,000 overdraft which already existed when the business was a sole trader. “The bank refused the company the overdraft, even though the taxpayers are putting money into that same bank. The company had invested 200,000 of its own money and was investing a further 50,000 of profits into a development project, which would employ up to 20 people.”

Mr Penrose said he had written to Brian Goggin, Bank of Ireland. When the Leas-Cheann Comhairle said “the deputy may not go into such specifics”, he angrily retorted: “Specifics? It is our money. That is specific. He replied and said he would investigate. The Minister should haul those boys in and tell them it is our money. We want it given out to those people to create those jobs,” he said as he noted that if unemployment hit 500,000 this year, it would cost the State €10 billion.

Ms Coughlan said the Enterprise Ireland initiative was “most important”.