Jimmy Deenihan (Kerry North, Fine Gael)

The package of measures in the supplementary budget is the fourth attempt to correct the budgetary arithmetic this year and, as previous speakers have hinted, it will probably not be the last attempt. People have asked whether the budget will restore the reputation of Ireland abroad. The markets spoke this morning when the value of Bank of Ireland shares declined by 35% from 96 cent to 66 cent in the first two hours of trading - it recovered to 90 cent his evening - while that of Allied Irish Banks fell from €1.28 to 81 cent earlier, although it rebounded this evening. The markets have spoken and are not convinced.

On a visit to New York and the Silicon Valley a few weeks ago, I found that Ireland's reputation is in tatters. It is embarrassing to speak to people who have a genuine interest in this country and have helped us in the past. They ask what the Government has done wrong and how we could have arrived at the current position, having received every opportunity from the European Union and United States in the past 12 years. When one reads in a reputable newspaper such as The New York Times that the Irish banking sector is the wild west of banking, one knows we are in trouble. Another recent headline, this time in The Economist, stated: "Ireland's economy: The party is definitely over."

Our international reputation has been in tatters for some time and the problem precedes the banking crisis. The tribunal saga, for example, has done immeasurable and irreparable damage to our reputation abroad. We are no longer trusted or believed and the country is no longer regarded as a good place to do business. Good news stories such as that of Hewlett Packard, to which a speaker alluded, are set to become increasingly scarce.

On the issue of banking, local banks have generally behaved in responsible manner. The entry into the market of Anglo Irish Bank and other banks introduced competition and put pressure on the Bank of Ireland and Allied Irish Banks to respond. Customers told managers in these banks they could obtain large sums of perhaps €2 million from Anglo Irish Bank in two hours and asked why AIB or Bank of Ireland was not prepared to provide similar facilities. These banks were placed under extraordinary pressure and, unfortunately, they responded in some cases.

During another visit to New York in March of a previous year, a person involved in real estate in the city asked me where Irish people were getting money to buy property in the city. He pointed out that the activities of Irish and Chinese buyers were inflating the price of property in Manhattan by between 20% and 35% and he could no longer compete. He was amazed by this and asked what was the source of the new found wealth being used to buy trophy buildings. New York was a microcosm of what was taking place all over the world, with Irish people buying trophy properties in many other countries.

If the money used for such purchases had been spent on infrastructure and buildings here, for example, in the tourism industry, we would at least be able to benefit from them but these trophy buildings are located around the world. According to the Government, we must now bail out the individuals who embarked on adventures all over the world because they could access easy money through Anglo Irish Bank and other banks. Many people are angry that taxpayers have been placed in this position. Their anger is only beginning to manifest itself. The budget is not balanced, as the Minister of State and her colleagues on the Government benches will soon discover.

I have been asked several times recently to explain the reason Ireland has such a negative credit rating. Deputies will be familiar with the Irish Credit Bureau. If one defaults on payments, perhaps only two or three times, one's bank will submit one's details to the bureau and one's name will appear on a blacklist. Those blacklisted in this way will find they cannot secure funding for any other purpose, including to purchase a motor car. This is a serious matter and I ask the official present to note it because when Members raise practical problems, no one listens. I raise this issue because I know someone who has been affected by the problem.

While I am aware that some schools building projects are proceeding, a tender approved project in Ballybunion has been delayed. The school authorities have been informed the project will proceed. Is that the case? Is a list available setting out the building projects which will proceed?

On the income levy introduced some months ago, I am aware of a case of a couple with three children who have €100 per week to feed and look after their family. They outlined their expenses exactly. They had €100 a week to clothe the five of them, send the children to school, entertain them and provide any furnishings, household purchases or repairs. They earned €50,000 per year. Having now been hit by another €3,000 by this budget, what will they do? They will simply not survive. They are a typical example.

I will now hand over to Deputy Ring who got a standing ovation at the Fine Gael Ard-Fheis last weekend when he made a tremendous speech.

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