Chamber president expects ‘pillar banks’ to return to normal lending

A RETURN to normal lending to business by AIB and Bank of Ireland is expected by Cork Chamber president John Mullins in the coming months.

Speaking at the monthly Cork Chamber business breakfast, held in association with the Irish Examiner, Mr Mullins said a recent meeting with the “pillar banks” had left him upbeat about lending needs of enterprises in 2012.

“As balance sheets are being repaired they are very much intent on returning to the old relationships the banks had with business in this town. I think that’s a welcome development and we look forward to more than anything the provision of working capital for our business in the new year,” said Mr Mullins.

“Cork has, in comparison to other parts of the country, held its own but we haven’t had employment growth; that’s the area we have to concentrate as an economy because of the social issues that come from the high levels of unemployment within our community.”

Mr Mullins congratulated Cork city and county councils on both striking rates and passing their budgets for the coming year.

He said his biggest concern was that, with the level of reductions to local authorities’ budgets next year, the level of services would be affected because of the loss of manpower in both councils.

Mr Mullins said the level of financial contribution to local authorities was unsustainable and pointed out that over 30% of Cork county’s budget comes from the business sector, while 38% of Cork City Council’s budget comes from business.