Beverley Flynn (Mayo, Fianna Fail)

I thank the Minister of State for sharing his time.

I welcome the commitment of the social partners who are engaging with the Government to try to bring about a solution to the very difficult economic crisis in which we find ourselves. We should recognise that we require a five year recovery programme. It will be very difficult to achieve an adjustment of €2 billion in 2009.

I would like to comment on a few main areas in the time available to me, the first of which concerns the banks. I feel very strongly that the banks must now act very responsibly in their dealings with businesses. Reference has been made to the fact that the banks have been bailed out. Some €6 billion has been committed to the two main banks in this country under the recapitalisation programme. Reduced interest rates are not being passed on to the business community and not enough flexibility is being shown by the banks.

Given that the Government is asking for a five year period in which to bring about economic recovery, it is not unrealistic to ask the banks to consider a five year recovery programme to deal with many businesses that I believe are viable and solvent and which could work through the difficulties if reasonable flexibility were shown to them in the five year period. I ask that this be done because all anecdotal evidence suggests banks are not lending money. There are many banks in the Irish economy that are not lending money at all and those that are appear to be doing so on a very restricted basis. We all know cuts must be made over the next five years but the other half of the equation is that we need to stimulate growth in the economy. Where will this growth come from if we do not invest in business and all sectors?

I have heard much criticism in this House of the construction sector and of our over-dependence thereon over recent years. It is true the sector played a greater role than was economically necessary and desirable but, in seeking to bring about a revival in the economy in the next five years, we cannot afford to ignore any sector. The construction sector employs thousands of people in every part of the State, including blocklayers, electricians and carpenters, who are in need of support. It is not all high-flying property developers in the construction industry. We must protect existing jobs throughout the State. Investment in infrastructure, particularly the building programme, must support these jobs.

For those unfortunate enough to lose their jobs, the Government must take action to ensure they receive their social welfare payments without undue delay. This is vital to the dignity and security of persons who find themselves in that difficult position.

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