Conor Lenihan (Dublin South West, Fianna Fail)

We must take measures in the budget and in the supplementary budget and in respect of the whole spending profile in which the State engages to rectify matters and to ensure that when we emerge from this period the possibility exists to be competitive relative to other economies in Europe and beyond Europe's borders.

The stimulus package which some, in a rather naive way, sought is not the only response required. We are not as free as other countries including our neighbour Great Britain and the United States of America, the economies of which are not analogous. We cannot involve ourselves in a deep rooted fiscal stimulus package which would allow, force, or encourage people back into the shopping malls and shops to kick-start consumer spending.

We are one of the most globalised economies in the world. Relative to our size we have the fourth most open economy in the world. We are a trading economy and some 80% of our produce is for export. Given the nature of our economy we are very dependent on open markets and on what takes place in the United States. It is no accident that, even in recent months and the period during which we have experienced recession, we are still reckoned to be one of the most open economies in the world. We are open for investment as indicated in all of the surveys whether from The Economist or others which measure these matters. We are still an open economy ready to trade with the rest of the world.

It has been a very exhausting time for the Government. Rescuing banks is not an easy business and those who say otherwise and produce instant solutions are generally incorrect. We have seen those failures particularly in the United States. The fabled choice or decision in regard to Lehman Brothers is a singular example. This Government produced a guarantee which stabilised our banks to a certain extent for a certain period and we are now proceeding with the recapitalisation. As a very extensive and positive move, we are now moving to create a new agency under the National Asset Management Agency, to take what are called the toxic assets of property lending or the bad loans - and the good loans as well - and move them off the balance sheets of the banks in order that they can provide the vital liquidity and lending in credit into the economy. We all know this. It is not as if we are naive in this House; we are all constituency TDs as well as the many offices and front bench positions we hold. We know the reality out there is not pleasant for people who are looking for credit because the banks are not particularly willing to extend or advance credit even when the credit-worthiness of the client is beyond reproach. This has to be addressed and we cannot continue in this situation whereby credit is essentially and effectively paralysed in this State. This is the reason the Government is proceeding with NAMA and the recapitalisation. We need to move quickly and the Minister for Finance will move quickly with regard to NAMA-----

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