John Curran (Dublin Mid West, Fianna Fail)

I wish to share my time with the Minister of State, Deputy Conor Lenihan. I welcome the opportunity to contribute to this debate and I recognise this is the most serious issue to be dealt with by Members since I entered this House. At the outset, I wish to express my disagreement with the previous speaker, Deputy Burton, who stated that Fianna Fáil mismanagement caused this crisis. For too long, Members have listened to arguments to the effect that events in Ireland differ from those in most of the rest of the developed world. If one reads the financial newspapers or considers what is happening in the United Kingdom, the United States, France, where this has been called Black Thursday, Russia or China, Ireland does not appear to have a particular issue. A global situation exists and due recognition must be given to that point. I agree with Deputy Burton on one point, namely, that the banking sector has been the catalyst for some problems and I refer to sub-prime lending in the United States in particular. However it is neither right nor fair to portray events in Ireland as being different from what is happening globally as that is not the position.

Confidence certainly has been undermined in the banking system both in Ireland and internationally and this issue must be addressed. At some point, a genuine debate must be held on whether we should establish what is loosely referred to as a bad bank, to absorb some of the debt or distressed or doubtful assets of such banks. However, doing so independently as a nation will not address this issue, which will require international support. As for the position regarding banking, Deputy Burton referred to Anglo Irish Bank. While I do not wish to pick on any individual bank, I question the policies and strategies of directors of banks in general, in which short-term profit on a year by year basis was advanced ahead of security and longer-term strategic decisions. Moreover, the existence of more immediate aims to address should not mean that the Government will neglect to consider these issues. If there was wrongdoing, those involved should be taken to task and there should be no place to hide.

In addition, regardless of whether one agreed with the guarantee system that has been provided, the State has a highly influential role in the banking system. One of the first things we should do, irrespective of whether any other supports are established, is that every bank that granted domestic residential mortgages that are less than five years old should conduct health checks on such mortgages. In other words, the recipients of such loans should be brought in and met by the banks. As a public representative, people visit my constituency clinic whose financial circumstances have changed. While such people may still be working, they may no longer enjoy bonuses or a partner may either have lost his or her job or been given reduced hours. While it would be prudent to so do, it should be obligatory to review, as a matter of urgency, any mortgage issued in the past five years, while adopting a flexible approach to rescheduling and so forth.

As for the economy, I was self-employed for a long time before entering this House and started a business at a time of recession. However there is one fundamental difference at present, in that well in excess of 2.1 million people are working. The challenge facing the Government is to try to maximise and maintain as many of those jobs as possible. While this will be a difficult task, that is the job at hand. In that regard, I have heard Members of the Opposition assert the Government has no strategy. It does have a strategy, which is to narrow the gap between revenue and expenditure, and the specific strategy for the current year pertains to the sum of €2 billion that has been mentioned. The difference is that the implementation of the strategy is being discussed with the social partners. Members on this side of the House fundamentally believe in social partnership. It has worked well for Ireland in the past during good times and as we now face more challenging times, where better to sit to implement the strategy than with the social partners? The strategy has been articulated clearly and repeatedly in this House by the Taoiseach. The figure of €2 billion for the current year has been given and the detail and implementation of that strategy is being discussed with the social partners. This marks the difference between Members on this side of the House and those on the other side, who do not necessarily agree with such an approach. While the Taoiseach has been the subject of criticism in this regard, the Government fundamentally believes that social partnership has worked in good times and the challenges now facing Ireland will best be faced through that mechanism. However, the strategy has been articulated clearly by the Taoiseach.

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