Finance Guarantee Scheme not working - Thurso
February 5, 2009 12:00 AM
"The banks are failing businesses; failing the economy; and since we own most of them the Government should direct them to get on with it."
Far North MP John Thurso has criticised the Government for failing to ensure that banks helped local companies to get credit through the Enterprise Finance Guarantee Scheme. Today at Business Questions he said:
"The Minister has heard from members on both sides of the house of the difficulties companies have in accessing bank finance under the scheme. Is he really saying that he is satisfied with the way the banks have behaved? The banks are failing businesses; failing the economy; and since we own most of them the Government should direct them to get on with it."
Speaking afterwards he said:
"The reply from the Minister was typical: well intentioned flannel but no real understanding of the problem on the ground. I have been contacted by a number of local companies who I know to be sound businesses and who have had long relations with their banks but who are suffering from their credit being squeezed by those banks as they desperately seek to reduce lending. This is simply not on. The Finance Guarantee Scheme exists to help in exactly this circumstance and it is time the banks got the message they are the problem and they need to become part of the solution."
Next Tuesday the Treasury Select Committee of which John Thurso is a member will be grilling the Chairmen and Chief Executives of the Banks. John Thurso said:
"If possible I shall try to find when the Boards of the Banks will take action"
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