Ned O'Keeffe (Cork East, Fianna Fail)

I understood I had five minutes. I am delighted to support the Government proposal because no alternative has been put forward. We are being watched and measured by international financiers as Ireland is in the borrowing cage once more. We are borrowing substantial money across the world and if we do not have our house in order, as well as a disciplined and protected economy, we will pay substantial interest rates that will add to our national problems. I fully support the measures by the Government and if there is a alternative, I would like to hear the Opposition put it forward.

There is much I could say if I had more time. Hard decisions must be taken and if we are not careful over the next five or six years, the national debt could be expanded significantly. I will not quote the figure because I do not want to frighten people.

Payments made to people both in the public and private sector in the form of bonuses and severances must be curtailed if we are to get the support of the ordinary people on the street who must accept 2%, 3% or even a zero pay increase. In the past ten years there has been privatisation, share options and bonuses that were not in the best interest of the community. I stated this last July in another speech I made and this is where we have really gone wrong. We expect working or poor people to take limited wages and salaries, and this must change. There should be discipline in the higher levels.

I am very critical of the handling of Anglo Irish Bank, which has destroyed Ireland's image in the eyes of people and our society. People have been quite critical across the world about the way it was handled. I supported the Government in voting but I have a personal view on the bank. It should have been liquidated and thrown to the wolves. Anglo Irish Bank was only an agency — it had no clearing facilities and did not want to see the likes of me or the Ceann Comhairle because it was not interested in our business. It was interested in big business speculators who have left us high and dry and destroyed our national banking system. It has destroyed two banks which have served the country since the founding of the State, Bank of Ireland and Allied Irish Banks, which was formed by a merger of the Royal Bank of Ireland, the Munster and Leinster Bank and others.

I have a strong view on the recapitalisation of the banks. This is being done to throw more money to speculators and expand the economy. I have heard from ten or 11 constituents in the past three or four months who had difficulties with banks. When I investigated and rang a bank official I was told he could not talk to me. In the past four or five weeks I have changed the system and I get a letter from them. Most of these people had difficulties in the good times so will we add to the misery with the €2 billion or €4 billion in recapitalisation? We might be better off giving it to the Department of Social and Family Affairs. One bank has said it might need all that capital. The banks should be allowed work through the system and write off the debts over the three-year period, which they have done in the past. A domestic recession was brought about by narrowing our tax base four, five or six years ago and leaving speculators get away with murder. Mr. Seán Dunne was paying €400 million for property because we had no proper capital gains tax on big developers, which we should have. It was grand for people like the Ceann Comhairle and Deputies Pat Rabbitte and Tony Killeen to have the 20% rate because they are small fry.

We expanded programmes and people went wild. Farmers down the country in villages and towns were selling land at a €1 million for a few acres. There was not even a pipe or wall on such land. Speculation drove the price to €10 million or more but only a small amount of tax would have been paid. If the State had received a substantial take from that land we would have equity across the system and no difficulties.

A great discussion is taking place in this country currently on Deputies' salaries and expenses. The commission we have set up here is a monopoly and monster which must be controlled. This House has gone out of control. The Houses of the Oireachtas Commission was introduced to euphoria because people thought it was a great idea. I was a lone voice that was laughed at when I said it was going to cost a fortune to run it. I was proven right but the Deputies' expenses will now pay for it.

St. Valentine's day is Saturday week.

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