Andrew Doyle (Wicklow, Fine Gael)

The vast majority of the finance secured for the works that took place is from institutions that are guaranteed or recapitalised by the Government. Given that the total amount due is approximately €500 million or a little more and accounts for only a maximum of 60% of the total investment, it gives us an idea of the level of borrowing that has taken place. What the Minister has put into this Bill makes those loans not nearly as secure or as sound as they were on foot of a guaranteed contract between the Government and the individuals. The Government's actions have added to the level of less safe debt the banks have. The banks' loan books have been compromised by their actions. These are the very banks and institutions that seek guarantees, recapitalisations and foreign investment and promote confidence in our financial institutions, yet by their actions they are compromising that effort.

It does not matter which sector of society or business the Government did this to; it has undermined the entire system. Deputy Burton talked about trying to restimulate the economy. Last week, AIB put an advertisement in every newspaper saying that it will pay on account. I went into my bank manager to ask what is going on and was told the banks are receiving directions to issue these letters. They are asking all farmers to come in and discuss how they will rearrange their repayment schedules. We have not received a letter of comfort and the Minister says he hopes to have a conclusion with the banks by the end of the week. That is not good enough. First, he will have to tell the banks to tell the people with outstanding loans they will have to wait for their money because their actions have caused the loans to be jeopardised.

See this speech in context