Michael McCarthy (Cork South West, Labour)

I am pleased to have the opportunity to speak in support of my party's amendment to the motion. Unless someone has been living under a stone in the past few years, we are all well aware of the extent of the financial crisis gripping the country. We are also well aware of the economic abyss in which we find ourselves and, unfortunately, the banking crisis that was not the creation of the Government. In many respects, the country is in receivership. We are dealing with the results of arch conservative, right-wing politics which brought the country to a halt and literally put us into receivership. To take a particular angle to the debate without being cognisant of the historical context is akin to throwing a dart in the dark. It is aimless. In that context, I will confine my remarks to the manner in which home owners are struggling and also the bank bonuses in terms of the culture in the banks which has not been brought to an end in recent times. We must be cognisant of where we are going and ensure the mistakes are not repeated.

One in ten home owners is struggling to pay his or her mortgage and trying to stave off repossession. A total of 400,000 people are out of work. The previous speaker was correct when he stated that when people took out mortgages, they did so in good faith and they believed they would be able to repay them. Unfortunately, given the economic and unemployment crisis, that is no longer the case. As the Taoiseach put it so well today, we are confronted by a challenging economic crisis, but it is not an impossible one. With the right decisions we can hope to turn the corner in the near future.

Amid the structural changes taking place we must not forget about the thousands of ordinary people who are bearing the brunt of the profound economic crisis brought about by our predecessors in government, Fianna Fáil and its friends in the Green Party. A recent national survey carried out by the Irish League of Credit Unions revealed many worrying trends about people's financial circumstances, including that 20% of Irish home owners had just €70 left in any one month after they had paid their mortgage and utility bills. Four out of five people said they were worried that they would not be able to cope if unforeseen expenses arose. In that context, it is urgent that we introduce legislation to provide measures to assist struggling home owners. The Minister eloquently brought forward a number of strong points in defence of what could be done in that context, but it is imperative that we drive to take action at this junction to help those facing eviction by the banks, those before the courts because they are facing bankruptcy and those struggling to make ends meet.

Analysts have indicated that the European Central Bank will raise interest rates twice within the next 12 months, with the first of these possible increases most likely to take place either next month or the month after. That is extremely worrying because we are dealing with people trying to exist on much reduced incomes. In addition, we have seen the appalling situation in recent weeks where some banks have introduced increased banking charges, which is making it almost impossible for some people to survive.

Recently I called on the Government to press ahead with legislation promised in the programme for Government to provide relief for struggling home owners. It is important for us to offer a quid pro quo to those who are struggling. We have seen the manner in which the banks have been recapitalised and the manner in which the previous Government bent to their every whim and need. When that is balanced with what the struggling home owner has to face, there is a huge cry for parity of esteem.

The ugly culture of paying banking bonuses sickens people to their core. The Committee of European Banking Supervisors published guidelines in January which advised governments across Europe on various new EU rules for bankers' pay. One of these guidelines is that investment banks should be forced to limit bonuses to a set multiple of bankers' salaries agreed with financial watchdogs. It is important that we press ahead with such measures.

There are many analysts and experts in what is a complex area. Every time we turn on the television the parliamentarian or the politician is sidelined in favour of an expert. It is experts who got the country into trouble, based largely on right-wing economic policies administered by Fianna Fáil and its friends in the Progressive Democrats and the Green Party. In my previous incarnation as a Senator there was one esteemed Independent Senator with expertise in banking who championed Mr. Seán FitzPatrick and Mr. Michael Fingleton and berated Allied Irish Banks and Bank of Ireland for not following the practices and business model of Anglo Irish Bank. Imagine how badly off we would be if they had listened to his advice.

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