Kieran O'Donnell (Limerick East, Fine Gael)

One would think from what has been said on the Fianna Fáil side in the debate so far that it had no hand, act or part in the situation in which the country finds itself. The Minister of State said Fine Gael did not know there was a global crisis. We all know there is a global crisis, but recognised independent bodies such as the ESRI have stated that at least half our problems are due to domestic factors and Government policy. The current situation, in which we are considering the setting up of NAMA, is due to our over-reliance on the property sector. When the governor of the Central Bank, John Hurley, came before the Oireachtas Joint Committee on Economic Regulatory Affairs, he said he had repeatedly warned the Government that the construction and property sector was overheating. In 2005 the IMF stated emphatically that Ireland was over-reliant on the construction sector. The Government cannot say it was not told there were problems. It was warned, and clearly it ignored these warnings.

Over the years there was phenomenal growth in the property sector. Deputy Kelleher made reference earlier to the export and business sectors. He will know that in 2003 our exports decreased for the first time, while at the same time the property and construction sectors were increasing at a considerable rate. The reason we are in this mess today over and above other countries - although no one denies there is a global crisis - and are facing a decline of 7% or 8% in the economy is our over-reliance on the property sector. It is the main reason the banks are in such a mess and our public finances are in a bad state. We moved away from the fundamentals of how the economy should be run. We are a small, open economy which must be export-driven. The Government took its eye off the ball. The funds were flowing in from the construction sector.

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