Michael Ahern (Cork East, Fianna Fail)

I am delighted to have the opportunity to speak on the Government motion regarding the recapitalisation of our banks, especially the Bank of Ireland and AIB. The background to this decision needs to be reiterated again and again as many seem intent on blaming what has happened here on the Government and have effectively said we have brought down the world financial system, which is stretching the point.

The collapse in the housing market had an effect on growth in our economy. That was recognised in the 2008 budget, when it was estimated that there would be a reduction in GDP of between 4% and 5% due to the reduction in the number of houses being built. The other collapse was in the financial markets, led by the banks in the United States, while there was also an appreciation of the euro against sterling and the US dollar. Around 20% of our exports are to Britain, so the 33% appreciation of the euro against sterling had a severe effect on exports to that country.

We have had to listen to the Opposition Deputies cry that money is being poured into the banks, with the insinuation that it is going to individuals in senior management at the banks. There is not a word of truth in that. Not one penny to date has been allocated to the banking system.

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