Billy Kelleher (Cork North Central, Fianna Fail)

I welcome the opportunity to speak on this issue. Earlier today some speakers said they had not had an opportunity to speak on the banking issue, despite the fact that we have had several debates on the broader economy and a number of Finance Bills in the context of the budget in October 2009 and the recent supplementary budget, and again now. Some of the commentary on the issue is welcome, but some of it is just soundbyte politics.

When we are dealing with such a serious issue as the banking crisis, it is important to acknowledge that not every part of the difficulty is a result of the internal dynamics of this economy. I agree we were over-reliant on the construction sector. Everybody acknowledges that, but nobody on any side of the House would have foreseen the drastic change in circumstances in the world economy that has transpired. I mentioned last night that before the 2007 general election all the manifestoes of the various political parties indicated growth rates of 4% for the years 2008, 2009 and beyond. Nobody indicated in those manifestoes there would be a major downturn. All the forecasts were that there would be buoyancy in tax receipts. Nobody can dispute that.

It is even more important to point out what transpired as a result of a confluence or combination of factors. We had the problems of the sub-prime market and the collapse of Lehman Brothers in the United States. This had a ripple effect across Europe. With all due respects to Members, we cannot blame the Government's policies over the past 12 years for the financial meltdown of institutions throughout the world, as has been indicated here. It has been suggested that all the ills of the world were caused by policies pursued by this Government over the past 12 years.

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