Batt O'Keeffe (Cork North West, Fianna Fail)

This is high-risk strategy that would inevitably cost taxpayers even more in the end and it would undermine confidence in the banking system and the country as a whole.

Political interference in lending policy has a disastrous history worldwide. Full nationalisation is the nuclear option. It is no coincidence that the only country to have fully nationalised its banking system in this crisis is Iceland. The Labour Party would do well to remember that, instead of playing fast and loose with our economy. In his speech to the Dáil, the Minister for Finance said that within the legal boundaries in which NAMA must operate, and notwithstanding its commercial remit, that NAMA could have a role in creating balanced and desirable places to live with obvious benefits for sustainable social values. He said that NAMA could seek to facilitate the Department of Education and Science and the Department of the Environment, Heritage and Local Government where these bodies have requirements, for example, in terms of schools and parks, which facilitate the creation of desirable developments that encourage vibrant sustainable communities. He said that such bodies could be given first option on disposals for a limited period and although they would have to pay the reasonable market price required they would at least be given the first mover advantage. As Minister for Education and Science, I very much welcome that proposal and I look forward to pursuing it.

Our mission is to have a healthy banking system that meets the needs of the wider community. If we do not act now to free our banks of their higher-risk loans, we will not be in a position to benefit from the economic recovery that appears to be emerging in the United States and in Europe. Without a healthy and functioning banking system, our businesses and service providers will not be able to grow and develop their products for our main markets. If we do not stand ready to take advantage of a global upturn as an open free-market economy dependent on foreign direct investment and international capital flows, we will lose market share and more jobs. Now is the time to act. The time for talk has passed. The Government will not shirk its responsibilities to this generation and those to come.

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