Ned O'Keeffe (Cork East, Fianna Fail)

——because I was told that agriculture was yesterday's business.

I raised this issue with Dan McLaughlin of Bank of Ireland. I had known, and can quote several paper cuttings from the past four or five years to this effect, where we were going in the world economy in respect of construction but no one took it seriously. That is the reason we have finished up on the rocks today. The results published by AIB this morning are quite frightening when compared with those from six months ago. I consider them to be quite alarming.

In the course of another debate in this House a few weeks ago, I stated that many people have invested heavily in the Irish stock market and other stock markets. Rather than investing in pension funds, they invested in the shares of Irish banks. They will receive no dividend. Such people will have paper shares and I do not know when they will grow again, expand and pay out dividends. I noted the bank today referred to 2011 and possibly later. Such people now are paupers because the small amount of capital they possess precludes them from qualifying for a non-contributory old age pension. Many such people have contacted me and I am quite concerned by this issue. I acknowledge the banks and all businesses must improve their capital base. The only way they can do that is by not paying a dividend, rather than engaging in scrip issues and whatever goes with so doing.

In respect of interest rates, I made a point in the House some weeks ago about the manner in which we had behaved. Developers bought land from farmers at crossroads and paid small money for it. They then developed such land by putting water or sewage pipes into it thereby increasing its value three, four or fivefold. Moreover, they got away with 20% capital gains tax. Had that tax been set at a higher level, we may not have had the problems we face today in respect of developers. As I have suggested previously, we should have a much higher rate of tax for speculators than for the ordinary Joe Soap. Although the man on the street expects an increase of 2% or 3% in his wage packet, share options was the name of the game for these people. I invest heavily and make no secret of it. I have suffered a lot in recent weeks and make no apology for that either. Members will see that my returns for next year will not be better than those for last year. I can live with that.

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