Irish banks unable to help export businesses

Irish banks are ill-equipped to deal with companies touting new business and exporting abroad and are facing stiff competition from foreign lenders, Enterprise Ireland has admitted.

The State agency also said that it had helped create just six net jobs in 2011, but that there were optimistic signs that employers were beginning to hire workers again — the agency helped create 3,338 jobs last year.

The Oireachtas Public Accounts Committee (PAC) voiced concern over an admission by Enterprise Ireland’s head of investment that Irish banks were not up to the job of working with exporters.

Niall Donnellan told TDs that the Irish banking system was “not fit” for the export sector. He said Irish banks had not been familiar with the smart technology, cleantech, or medtech sectors.

Enterprise Ireland has since made efforts to introduce the main Irish banks, including Allied Irish Bank and Bank of Ireland, to groups that work in related sectors, the agency official said.

Progress was being made to introduce the main banks to the emerging sectors and export areas, it was added.

Some lenders were unfamiliar with new economies — such as China or India — which companies were also targeting, TDs were told.

Enterprise Ireland chief executive, Frank Ryan, also admitted that foreign banks were competing with Irish lenders for new business. Fine Gael TD John Deasy said it was a worrying case that overseas banks were “taking advantage of the skills deficits” in Irish banks.

His party colleague, Simon Harris, called on Irish lenders to up their game on new markets and businesses.

“Enterprise Ireland now finds itself having to effectively educate our banks on engaging with exporting businesses; a sector of our economy which is really crucial to our recovery. Exporting companies shouldn’t need to rely on a go-between. Our banks are there to facilitate trade and enterprise; they need to bring themselves up to speed.”

Meanwhile, the agency confirmed that it helped create six net jobs in 2011 and another 3,338 last year.

Sinn Féin’s Mary Lou McDonald said she was alarmed at how small the number was.

Enterprise Ireland said it hoped to create more than 10,000 jobs this year.