Kieran O'Donnell (Limerick East, Fine Gael)

A 40% write off would be €36 billion. The figures do not add up. That is why the Government needs to look at the scheme we are proposing, which at least would provide the taxpayer with some chance. The Government would be required to put money into the fresh bank. but at least it would ensure that through ordinary shares there would be some return and that funds flowed to small business.

My understanding is that the reason for the recapitalisation of the banks was to ensure that funds flowed to small business. My worry is small businesses will be so crippled in terms of extra income taxes as well as the taxes they have to pay for this national debt that they will not be able to function. The Taoiseach could have introduced very simple measures that would have removed some of the pressure from them, for example, a Government guaranteed loan-backed scheme, VAT reduction, reduced energy costs, to allow for some degree of confidence. However, the ultimate result of this budget is that people will continue to save because they will be worried about their jobs and VAT receipts will fall. Developers throughout the country, who are doing their 2008 limited company accounts at the moment, will be valuing their assets at very low values and creating losses which they will refer back to the 2007 profits to get refunds of corporation tax. They will be getting a double benefit, and that is wrong.

See this speech in context