Finian McGrath (Dublin North Central, Independent)

I am grateful for the opportunity to speak on this legislation. I welcome the debate on the Asset Covered Securities (Amendment) Bill 2007. I always welcome reforming legislation coming before the House, and this also gives us an opportunity to discuss in detail the financial sector, the economy, banking, jobs and investment, which are crucial at this point in our history. It also gives us a chance to put forward new ideas on investment and job creation. We must have a constant stream of new and radical policies on investment, economic development and, above all, creating quality jobs. In this debate, it is important that we focus on such important issues.

We are also at a crossroads. There is much debate and focus on the economy in general. Are we turning our backs on the question of whether we are a society, a country or an economy? This legislation gives us the opportunity to deal with such issues in a most comprehensive manner. I agree with the Minister that it is a quite technical and complex Bill. I hope that the reforms outlined have been carefully drafted in consultation with industry, legal experts, the Financial Regulator and the Parliamentary Counsel. These issues are extremely important as well as very technical. We also have a chance to consider the ongoing effectiveness of an important sector of the financial services industry and the wider economic activity that it underpins. It is a crucial issue because we seem to be obsessed with economic development. We are all in favour of developing the economy but we must also ensure that our economic resources are distributed fairly to society at large.

Ireland was once known as the island of saints and scholars but today, sadly, it is better known as the land of scandals and tribunals. Politics, banking, the church, business, medicine, the law and the Garda Síochána have all suffered from an erosion of public confidence. Moreover, Ireland has undergone rapid social, economic and political change over the past decade, which has had a profound impact on our value systems. At the beginning of the 21st century, the country is fairly prosperous yet this situation can create dilemmas of its own. Difficult decisions about the distribution of our resources raise awkward questions for society. This brings us to the recent outbreak of auction politics. How is the balance between individual rights and the overall good of society to be resolved? To whom do we look for guidance? The credibility of the church, the banking sector, the political elite, the medical and legal professions, and business leaders, has been seriously damaged. We have an opportunity today to examine and debate these issues, rather than sticking our heads in the sand.

The purpose of the Bill is to introduce some necessary technical changes to the Asset Covered Securities Act 2001, to provide greater legal clarity and facilitate greater flexibility in operating some provisions of the original Act. The Bill also includes some new provisions aimed at developing the Irish covered bonds statutory and legal framework in light of changes made in other jurisdictions or in EU legislation. It introduces a new kind of designated credit institution — a designated commercial mortgage credit institution — whose activities will be focused on commercial mortgage lending. These are the issues that fall within the remit of the legislation.

This debate provides us with an opportunity to highlight the problems facing young people who seek mortgages and other loans. Many young people currently find it very difficult to get on the housing ladder. It is a major problem for many people, particularly those on low and middle incomes who are finding it virtually impossible to buy a small apartment or a three-bedroom semi-detached house, especially in Dublin. Many constituents have phoned me about the supply of mortgages and housing, which is a crucial part of a decent and fair society. If people are unable to obtain home loans it is damaging for the country. At the same time, however, many wealthy individuals seem to own several houses and have plenty of personal investments. Members of this House have been involved in this kind of carry on, while young couples cannot afford to buy their first home. It is important to highlight this matter, although I am not a lone voice in doing so.

Last Friday, these matters were raised on the "Late Late Show" by George Lee. It is time for a wake-up call to consider where this country is going. There is nothing wrong in challenging the status quo and proposing new ideas on finance, mortgages and banking. Neither is there anything wrong with challenging those who have misled consumers and, in many cases, ripped them off. I challenge the Minister of State and his Government colleagues on these important matters.

In discussing the development of the economy, we must wake up and smell the coffee when it comes to the issue of jobs. In recent weeks, we have seen job losses in companies that are moving their operations from this State to countries with low-wage economies. As a nation, we must plan for the future in order to deal with such developments. I do not want to see us in a situation where low pay is back on the agenda again. When we are doing our research on developing the economy, including banking and the financial sector generally, we must have creative new ideas to achieve such development. We cannot afford to lose thousands of jobs every month. This is the stark reality that many people are worried about. Members of the House have concerns about big industries in their own constituencies, so it is right and proper to highlight these matters before the situation gets worse. This is not about political point scoring, it is a question of caring about economic investment and the direction of society in general. It is important to support our young people, and young couples in particular, when it comes to dealing with these issues.

I welcome the debate on this Bill, which is important technical legislation. I also welcome any new ideas from any Members on creating jobs and promoting investment.

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