CPA president calls for banks to release finance

The Government should introduce a condition that at least 25% of the €7bn Nama premium be allocated to credit facilities for viable SME businesses, it was stated today.

According to president of the Institute of Certified Public Accountants in Ireland (CPA) John White, banks need to release working capital finance to the SME sector as a matter of urgency.

"The Government may have made lending a priority but the reality is that there is little or no demand for long term finance at present," he said.

"The SME sector does not need an independent credit committee to report this fact in six months. Viable businesses are getting into trading difficulties, and the demand is for working capital now, that will permit the flow of money once more."

Mr White was speaking in advance of this evening's CPA annual president’s dinner, which is to be addressed by Minister for Finance Brian Lenihan.

“Banks are receiving Government and taxpayer support at a very low rate of interest," said White.

"This benefit should be passed on to businesses that have the capacity to deliver employment and begin our much needed economic recovery.

“The Minister has stated that he expects our recovery to begin at the end of next year, with considerable challenges for some years to come. The reality is that our recovery begins now – and will be informed by the decisions we take now to chart this recovery.

"The upcoming Budget has to be instrumental in repositioning Ireland Inc as a competitive, well resourced, and ethically sound place to do business. A simple book balancing exercise is simply not enough."

Speaking about the changes that need to take place in the public sector, White stated that the Government cannot continue to shy away from rationalisation of public-sector spending.

"The Government must take the necessary tough decisions for the greater good, and cannot be bullied by vested interests," he stated.