CRITICISING GREED in the financial sector, Taoiseach Brian Cowen last night challenged Irish banks to respond to this week's emergency package by adopting a more open attitude to companies seeking capital to develop their businesses.
He told an Ibec-CBI (Confederation of British Industry) forum of North-South business leaders at Trinity College that Ireland was at a "defining moment" in its history and he praised the "notable support" of Fine Gael in the Dáil.
In a key passage, the Taoiseach said: "There has been much comment internationally about greed being at the heart of the subprime problems in the United States. Greed is a human failing and it has not been absent in Ireland either.
"There is no doubt that it has contributed to the huge problems in the financial services industry which faced us last week. Government had to act to stabilise our financial system.
"People's jobs and livelihoods were at stake. Without a stable banking system, we have no economy and no prospects.
"That is how serious the situation has been. And there is no doubt that this is a defining moment in our nation's history."
Looking ahead to the budget on October 14th, he said the Government would make the necessary decisions, "no matter how unpalatable". He also promised details of a medium-term economic strategy in the coming weeks.
"We need a robust banking system. Protecting it in the manner and on the scale we have done this week is not something government does lightly."
He continued: "Any of you who have been trying to get lines of credit in recent months and who have found the banks, in effect, closed for business, should now see a change, I hope. Your legitimate, well-planned and costed business ideas can now, and must now, be banked."
The Government had not supported the banks to protect the reputations of institutions and individuals. "We chose this course because we have an economy to protect and to grow.
"That is what we are responsible for. But make no mistake, the Government and the Oireachtas have done our bit - with the notable support of the main Opposition party - and now it is up to the banks to respond.
"Too many good businesses have run into difficulties in recent months because the banks stopped doing what they are there to do. Business, just like banks, needs access to capital.
"In today's world, more than ever before, great prudence needs to be applied to determining which opportunities to finance, but not having access to capital should no longer be used as cover to avoid doing business.
"This is not a free guarantee that Government has given. Banks who choose to avail of it will pay a substantial fee for the use of the State's excellent financial standing." That standing had been "carefully and painstakingly built", he added.
Mr Cowen appealed, "to all stakeholders in this economy - unions, employers, farmers and others - to stand shoulder-to-shoulder with me and the citizens of this country as we take some of the toughest decisions that we have had to make in some decades".
He concluded: "And I commit to the Irish people all of my strength and resolve to lead the country through this challenging period, with determination and strength of purpose. Gura míle maith agat."
