Darragh O'Brien (Dublin North, Fianna Fail)

I am pleased to have the opportunity to speak in support of the Government amendment to the motion on our approach to the banking situation. The crisis is not specific to Ireland. This is a global financial crisis in which Ireland is affected by what happens abroad and in larger markets. It is incumbent on the Government to do all we can to protect our banking system and, most important, the wider economy.

I want to put to rest the accusation that Government measures, from the deposit guarantee scheme to the recapitalisation of AIB and Bank of Ireland, and the nationalisation of Anglo Irish Bank, have been bank bail-outs. Nothing could be further from the truth. This misinformation and spin from many in the media, and some members of the Opposition, does great disservice to the public and the country. More than 250,000 people work in the financial services sector. The viability and strength of the banking system and the financial services system are interlinked and it is crucial to ensure we retain and grow these jobs and this expertise. Without a viable and robust banking system all other areas of the economy are under threat. Government has been engaged not in a bail-out of the banks or bankers but in the protection of jobs, and of the country's ability to trade internally and internationally.

I welcome the Opposition's more measured comments this week. This issue is far above politics and should not be the plaything of party politics. It is incumbent on us all to ensure our comments are responsible and that we do not make statements that can damage the country's reputation. The recapitalisation of the two main banks to ensure they are robust is crucial to every job in the country. The main Opposition party's suggestion that we let Anglo Irish Bank go to the wall, thereby causing it to default on its foreign bond repayments, was wrong and only made for short-term political capital. If any Irish bank, including Anglo, defaulted on its debt repayments the consequences would have been catastrophic for the rest of the banking sector and for the country. We would not have been able to access funds on foreign markets for Exchequer borrowing or would have had to pay a high price for them. The Government is committed to investing in infrastructural projects under the national development plan by way of a stimulus package. If it does not access funds this cannot happen.

The Government's policy on stabilising the banks has been consistent and measured. Every step of the way decisions have been taken for the good of the citizens. Deposits have been protected for ordinary savers and outstanding loans will not be forgiven. The 8% yield on the coupon with AIB and Bank of Ireland is significant. This type of return on investment for the National Pension Reserve Fund could not be attained anywhere else on deposit markets. The continuing focus on liquidity and lines of credit for small businesses must continue and further funds will come in as part of this recapitalisation. We are changing the way the banks are managed, and investigations are under way.

I commend the Government on taking decisive and necessary action at a crucial time for the country and its businesses, foreign and indigenous.

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