Deirdre Clune (Cork South Central, Fine Gael)

Not until such time as we get our banking system right will our economy begin to recover. We need to get to the bottom of the problems in the banking systems and then we can move forward. Nobody believes that we have got to that stage. We need only look at the share prices of our two main banks. It is quite evident that there is no international confidence whatsoever in the banking system in this country. It appears the €7 billion is not doing the trick. The redacted version of the PricewaterhouseCooper report that was produced last week certainly gave us an insight into the level of difficulties and the high levels of exposure in our banks, but we need to see that report printed in full and to know the exact state of our banks and the level of exposure they face.

The motion concentrates on the banks and the regulatory system which has failed in its primary function to monitor the banks. The people are crying out for reform. We saw it on the streets of Dublin last weekend. Initially the protest centred on the unfair pension levy but there were people present who want to see our banks back functioning. The primary function of a bank is to lend on the basis of its deposits and we have not seen this in our banks for quite some time. Many of them have been acting as property developers and have lost the run of themselves.

We want an end to the piecemeal approach from the Government so far. It started out with the bank guarantee scheme in September last, and then there was the nationalisation of Anglo Irish Bank and the recapitalisation programme. At this stage we want to see the bottom line. Exactly what is the level of debt? It is quite obvious that the efforts of the Government so far have done nothing to ensure international confidence in this country.

The people want to see an end to the excessively obscene salaries, bonuses, payments and golden handshakes to senior bank executives and those sitting on boards of these banks. We now own one bank and we may have to invest further in other banks. The Minister, in his response to the motion, refers to another committee that he has set up to look at remuneration of bank executives. Why does he not just do it? It is within his power. The Executive has leverage in terms of the commitments that have been given to those banks and the people want to see an end to the excessive moneys that have been taken in remuneration from these banks. Yesterday we saw the fraud squad move into Anglo Irish Bank. The optics were great but, as has been stated here tonight, I wonder if it was not too late.

I reiterate my support for this motion. We need to see action in this area. We need to get to the bottom of what is happening in our banks. Unless the banks are functioning properly then the economy will not begin to recover, finance will not be available to small viable businesses up and down this country which are being strangled and cannot function and which are being denied funds to get them over this difficult period. I commend the motion and look forward to Government support for it tonight.

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