Mandelson: Banks do not want small firms to fail
Oct 29 2008
Peter Mandelson says he is convinced banks will make funds available to small firms as they do not want companies to fail.
The business secretary said the financial situation is 'tricky' for all but that banks have pledged to make more money available.
Answering a series of questions from small business owners in the Daily Mail, Mandelson says: 'We need action, not words. They [the banks] don't want to see their small business customers put out of business, nor do they want to see people being made redundant.'
He adds the new forum between small firms and banks is the 'best solution' for all.
When questioned about the delay of the transfer of money from the government to banks and then onto small firms, Mandelson says it will continue to work with banks to speed up this process.
He adds he is 'determined' that farmers, businesses and manufacturers have the 'resilience to survive these challenging times'.
The government announced last week that a forum between banks and small companies had been created to encourage lending levels to increase.
The business secretary said the financial situation is 'tricky' for all but that banks have pledged to make more money available.
Answering a series of questions from small business owners in the Daily Mail, Mandelson says: 'We need action, not words. They [the banks] don't want to see their small business customers put out of business, nor do they want to see people being made redundant.'
He adds the new forum between small firms and banks is the 'best solution' for all.
When questioned about the delay of the transfer of money from the government to banks and then onto small firms, Mandelson says it will continue to work with banks to speed up this process.
He adds he is 'determined' that farmers, businesses and manufacturers have the 'resilience to survive these challenging times'.
The government announced last week that a forum between banks and small companies had been created to encourage lending levels to increase.