Bertie Ahern (Dublin Central, Fianna Fail)

I am certainly not trying to be smart about any of these issues, but I make the point that Allied Irish Banks is a very good Irish company. The threat over the past ten to 15 years was that our two main banks could be taken over internationally. That was a real fear for several years during the past ten to 15 years, namely, that they would not have the critical mass in the international financial environment to be able to maintain their positions. I get a sense of satisfaction from seeing Allied Irish Banks or any Irish company making half of its profits on the international market. I am subject to correction but traditionally that was the position. One of our companies is able to compete in that market.

Equally, I agree that the more competition, whether from An Post, the credit unions of which most people are members, the Bank of Scotland or any of the other financial services, the better it is for the customer. The Government, through legislation and in any other way it can, promotes such competition. Banks, therefore, must be fair to their customers while monitoring their profitability and securing the best deals for people.

Deputy Rabbitte asked me a question about the Central Bank's report. As domestic demand has been strong in this country, people have borrowed. In every single examination that has been done on this, it has been found that people have not borrowed excessively. The credit unions have vast amounts of money and they would be glad to facilitate borrowing. The position is equally similar in the banks for the very reason the Deputy mentioned. I am aware that if one goes to the bank to cash a cheque, one may end up being offered a car loan. I do not agree with that, but the fact is that the banks have resources and they at all times target their customers to take out loans.

The saving ratios in the country are higher than they have been at any time in the past 25 years because of initiatives of this Government. There are companies in the International Financial Services Centre making vast amounts of wealth and which would not employ a handful of the people employed by Allied Irish Banks. That said, I am also glad they make those sums because the International Financial Services Centre is a good resource for the State.

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