Seán Ardagh (Dublin South Central, Fianna Fail)

I agree with Deputy Quinn. As a result of this, financial institutions throughout the world suffered and, in turn, us consumers now suffer through the non-availability of loans, particularly mortgages at reasonable rates for young people. Recently, a businessman with a large number of assets went to a bank seeking a small loan and was refused because the bank had no money to lend. This problem will stop development, business, growth and building and it will take time to overcome.

As Deputy Michael McGrath stated, the price of oil has doubled in dollar terms. Fortunately, the weakness of the dollar has helped somewhat but our trading position vis-À-vis the United States has disimproved. Sterling has become weaker vis-À-vis the euro but we have not received the benefits. We still pay consumer prices at the high sterling rate. Food supplies have been caught in a pincer movement throughout the world. On the demand side, in emerging economies incomes are increasing and demand for staples has increased to such an extent that countries in south-east Asia are out of rice because they are so poor they cannot afford it. At the same time, on the supply side, agricultural land is being used to grow bio-crops, which is taking from the availability and supply of food. All these issues have resulted in an 8% increase in the price of food and a cost of living increase of almost 11% in Ireland. We are a republic and it must be ensured in correcting the downturn in the economy that those who can best afford it will pay for it and the least well-off, who have been well looked after over the past ten years through welfare increases and health services will continue to receive such increases and services. Those who can afford it must take responsibility and suffer the pain that is inevitable.

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