Timmy Dooley (Clare, Fianna Fail)

I welcome the opportunity to contribute to this discussion. We have had a series of broad debates on the economy in the last few weeks. This debate relates particularly to the banking crisis. The country's banking system is in a seriously compromised state, as we all know. As Deputy Fahey and others have said, there is nothing particularly unique about this. Virtually all other EU member states are in the same position, largely, as are other countries throughout the world, including Japan and the United States. The wrongdoing that has taken place in this country is not unique and we are wrong to continue to focus on it. We need to try to work through it, to get to a point at which we can draw a line under it. If we start to re-energise ourselves, we can show some confidence in the banking system and the country as a whole. It is necessary to do this. We have to re-establish trust and confidence, nationally and internationally, in our banking system and country. Perhaps these debates will give us an opportunity to do this. However, we cannot do it alone. The first steps that need to be taken are evident in the involvement of the Office of Corporate Enforcement and the Financial Regulator. I accept what Deputy Rabbitte has said about the regulatory issue. We need to beef it up considerably if we are to give confidence to the wider community. Other Members have spoken about the procedures that need to be followed as we root out the wrongdoing that has been perpetrated. However, I will not labour the point. Where there has been wrongdoing, effective prosecution is needed to provide confidence nationally and internationally. We must demonstrate to everyone that wrongdoing has no place in Ireland and its financial system.

We must work with other EU member states to devise a robust regulatory regime. It should be constructed in a manner that takes account of the weaknesses being identified on a daily basis. In doing so, it is important to take cognisance of the decision taken by the country in last year's Lisbon treaty referendum. More than ever, we now realise that we can be isolated on the basis of decisions we have made, albeit in a democratic fashion. There is a price to be paid. I am concerned that our rejection of the Lisbon treaty is being used in certain other member states and by various hedge funds mentioned to suggest Ireland is in some way disjointed from the European Union, or is not part of the central system. We will need to work on this. The Union needs to standardise its approach to regulation. It will have to take a lead role at the G8 and G20 to bring about a robust Europe-wide regulatory system and a much wider system throughout the world. We can clearly see what happened in the United States. Some have argued that the lending practices permitted in Fannie Mae and Freddie Mac brought about an avalanche of distrust in the banking system. That has led us to where we are today. It has highlighted the fundamental weaknesses in various financial systems throughout the world. We are where we are and have to find a solution to the problem. We cannot be blamed individually or in isolation.

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