Brian Cowen (Laois-Offaly, Fianna Fail)

Now that comment has finally emerged I had better deal with it. The purpose of trying to sort out our banking system is to secure jobs. If one talks to any business person in this country today about what is the biggest problem for Irish business, they will say it is about getting access to credit. It is about keeping jobs going, finding cash to pay debtors, having the ability to fulfil orders and pay employees. Many employees are prepared to make sacrifices to keep as many of their colleagues as possible in work during these difficult times, rather than going for a simple redundancy route. Therefore it is about jobs, it is not about looking after anybody.

Everyone in this House should accept that, for whatever length of time we are here, we are serving the public interest to the greatest possible extent. If we cannot accord each other that basic axiomatic fact then no wonder we have the distortions the Deputy is talking about. People are making those sort of arguments for no purpose other than to continue on with that sort of discourse, even given the seriousness of the problems we face. In every country people know that as a result of the biggest financial crisis seen in the developed world in 70 years, governments are grappling with the issue of how to capitalise banks properly, how to ensure credit is available, and how to ensure there is a functioning banking system in a modern market economy.

With regard to our own domestic experience, we also know that if the present situation were to continue without any policy direction or decision to deal with it, the problem itself would feed and exacerbate the difficulty of getting access to businesses. Let us be clear therefore that it is about jobs. When people ask what we are going to do about jobs, and at the same time go down this cul de sac of ascribing to the Government some malign motive in taking what is a hugely important strategic decision, it serves no purpose other than precisely the one mentioned by the Deputy - perhaps some semblance of electoral advantage in that people will listen to that as being the true motivation for what we are trying to achieve.

I do not mind people disagreeing with me or the Government on policy options or positions we bring forward. There was no support in all circumstances in this House for the State guarantee or recapitalisation, but they were necessary measures to effect some semblance of stability in a financial system that was in genuine distress in this country. That is indisputable. People can have whatever views they like after that, but those facts do not go away.

We are trying to ensure that banks in this country get back to their core franchise of looking after businesses that need credit, people who need mortgages, and depositors who can have a sense of security in their deposits in future. Families need to be able to get on with their business, using the credit system to effect the quality of life they enjoy. That is what it is about, and nothing else.

Let us have a debate on the merits of the budget. People can have different models and different views, which is fine. I do not mind that but we should not allow an issue that is so important for the economic future of this country to be brought down that cynical cul de sac. I am sure there are some people who may hold that view no matter what the evidence and will never change their minds on such things. There is nothing I can do about that either, but it should not be allowed to dominate this important debate. In respect of that issue, we are simply setting out in this budget the general policy direction we need to take, with a lot of detailed work to be completed in terms of legislative changes that are required and a whole range of issues that have been raised in a preliminary way this evening in the House. We can have those debates and that discussion but it is wrong to portray or characterise the motivation of Government as anything other than trying to protect the interests of the taxpayer.

The taxpayers and workers of this country are not best served by continuing to suggest that the present situation should continue regardless, or that there is a way of getting around this problem other than by dealing with the issue, that is, by acknowledging the impairment of assets and loss of value. On the Deputy's point, reference to book value is not to suggest for one moment that this will be the valuation of assets which will come across to the assets management agency.

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