Billy Kelleher (Cork North Central, Fianna Fail)

There was no allusion to that fact and the Labour Party's growth projections were in accordance with the norms that other political parties put forward and with international commentators and economists who said that Ireland would grow by approximately 4% in 2008 and 2009. For people to wear rose-tinted glasses and lecture us on the basis that they forewarned us is to say the least disingenuous, and if I were to stretch it I would say it is dishonest. People here and outside the House acknowledge that the problems confronting us are very serious. The Minister for Finance has had to make difficult decisions. They started with the bank guarantee on 29 September 2008 when the Government faced the potential collapse of the banking system. That is how grave the problem was. We can argue about how we arrived at that point but most of those problems derived from the international banking crisis that has afflicted all the modern banking systems of Europe and elsewhere.

If we are to deal with the problems, we should acknowledge their root. The reason for our economic contraction of between 8% and 9% in 2009 is in part an over-reliance on the property market but equally because this is an open global trading economy and our exports are having difficulty in markets that are struggling and contracting too. Germany was potentially going to ride out this economic storm with projections of a 2% shrinkage in January but that has changed to 6% for this year. People who claim the problems are all the fault of the policies pursued on this side of the House are not facing reality and do not want to do so because they do not have policies that can be costed. They know that if we are to deal with the deficit and budgetary difficulties, people will suffer pain. Some commentators outside the House have acknowledged that it is easy for people to highlight the difficulties but few solutions have been offered.

In September 2008 Fine Gael was conscious that the banking problems were of national importance and supported the Government's view that it had to guarantee the banks to prevent a massive run on deposits that would have caused a collapse across the board. Nobody, not even the Labour Party, can tell me that we could survive if we allowed the banking system to collapse. Time and again Deputies talk about businesses being unable to access credit and losing their short-term overdrafts and loans, and about first-time buyers who are unable to access mortgages although they might be in secure jobs and could afford them. If we had allowed the banking system to collapse, businesses would not have any credit facilities and we would be a basket case. Deputy Burton has not faced the reality of this issue but there has been a lot of bluff on it.

We nationalised Anglo Irish Bank, capitalised Bank of Ireland and further discussions continue. The national asset management agency, NAMA, is critical to dealing with impaired assets but there are people who consistently refer to it as "An Bord Bailout". Everybody is aware that the capitalisation will yield dividends to the taxpayer. There is a charge not only in the guarantee but also in the capitalisation. People should read the fine print when they comment. The Minister has referred to the difficulty and complexity of NAMA, and we have no choice but to deal with impaired assets because until we do the banks will not be able to access wholesale money markets and provide credit, which is of critical importance to small and medium-sized businesses and to first-time mortgage holders.

I am sure every Deputy has met in his or her clinic young people who have approached banks for a mortgage but are unable to access one, despite having secure employment. We must address that problem. I have said a couple of times - whether people have listened is another matter - that the banks have a fundamentally different relationship with people through the bank guarantee and capitalisation scheme. In cases where there are positive proposals to support small and medium-sized businesses or first-time mortgage holders, I urge the banks to look on them more favourably than is the case at present because the banks are stifling growth and commercial activity which is having a negative effect on Ireland's commerciality and viability. This erodes confidence, resulting in job losses. We would like to be honest in that debate.

With regard to the issue of taxation, there is a view that if one taxes Bono, Enya and a few more, all our problems will be resolved. The fact of the matter is that there are just not enough Enyas and Bonos in the country to deal with the current budget deficit. The proposals introduced by the Minister, Deputy Brian Lenihan, are progressive in that if one earns more, one pays more. One can work out the income levy any way one likes but one will discover that those who earn most pay most in that context.

I urge people to be responsible in the challenging times that face us. There is potential for optimism and hope. If one looks at trends in the international markets in recent days, one will note the announcements, emanating from Europe, that some countries may have bottomed out and are, as the jargon goes, at the inflection of this curve. It is important that everybody in the House acknowledge the difficulties that confront us. If one is to object to them, one should make proposals that are sensible such that we can have an honest debate on how to address the issues. To date, I am disappointed that this attitude is not being adopted in certain quarters.

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