Joan Burton (Dublin West, Labour)

Has the Minister read the Labour Party's detailed proposal in respect of the establishment of an investment development bank? Such banks exist in many countries and provide a mechanism for issuing bonds similar to those to which the Deputy has referred, whether on or off the State balance sheet? Is the Minister suggesting the price or rate of return investment and pension fund managers have sought in the recent discussions about such bonds is too high? Many in both the private and public sectors are extremely anxious to find safe places to save at reasonable rates of return. They are looking not for huge interest rates but for reasonable rates of return. Many of them end up going overseas. In the past, many of them invested in Irish banks because they felt, patriotically, that they were a safe place. How wrong they were, given that the Taoiseach introduced contracts for difference tax free and wrecked the value of Irish banks on the Irish Stock Exchange through gambling. Is the Minister saying pension funds are looking for excessive rates of return or that he does not want to encourage Irish savers to buy into Government products, perhaps because he wants to leave the money for the Irish banks? It is difficult to understand what approach he is taking. Will he explain it?

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