Peter Power (Limerick East, Fianna Fail)

I commend the Government's amendment to the House.

We in Ireland, like all countries in the developed world, are confronting the greatest financial economic crisis that the developed world has seen for well over 100 years. Before we can solve the crisis, which is what this motion seeks to do, we must look at its essential characteristics. What are they? The defining characteristic of this financial crisis and recession as distinct from those that have gone before it is its unpredictability. The nature of this crisis is changing all the time, almost on a weekly basis. From the moment the American Government let Lehman Brothers go last year, it has been impossible to predict where the crisis is going.

The perceived wisdom 12 months ago was that a 4% capital base ratio for our banks was sufficient. We now know that was incorrect, even though it was predictable at the time. The ratio is now estimated to be 9% and we have recapitalised the banks to that extent. What will it be in five months' or nine months' time? No one can predict that. Only in recent days President Obama signalled further massive underpinning of the American financial system, where this crisis began. Accordingly, because the situation is so fluid and is changing daily, the reactions must be also on a daily basis.

There is one constant in all of this. Since last September when the Government had to intervene, with the support of the proposers of this motion, Fine Gael, the decisions that have been made have been in the national interest. Recent events have shown that the Government has not been influenced by golden circles or the malign forces that have been suggested within this very Chamber. Suggestions to that effect were made not alone without evidence or foundation but with a complete reckless disregard to the financial status and reputation of the country and its ability to raise finance in the capital markets. That is why those who speak about the crisis must do so in a measured tone. The Government's approach to this crisis has been measured and decisive at each and every unpredictable turn in events. The approach has been structured.

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