Mary Coughlan (Donegal South West, Fianna Fail)

I will say it often enough.

I am aware of the markets' reaction today to the Minister's speech, in particular in relation to our two main banks. It is not unexpected that a period of volatility in share prices would follow a significant announcement such as yesterday's and it will be a number of days before its full effects are visible. While the publication of half-year results at midday today by one institution will have had an impact, the initial increase in share values may be interpreted as an expression of confidence in our ability to take the decisive action necessary to deliver a restructured and cleansed banking system which can support recovery. While the publication of half-year results at mid-day today by one institution will have had an impact, the initial increase in share values may be interpreted as an expression of confidence in our ability to take the decisive action necessary to deliver a restructured and cleansed banking system which can support recovery.

There is an urgency associated with this legislation. Economic recovery appears to be emerging in parts of Europe and in the United States. The UK, Germany, the US and others have all established schemes to deal with impaired assets. These schemes are designed to meet the specific problems each of these countries faces. First, Ireland must be able, and be seen to be able, to devise and implement approaches to deal with problems affecting our financial and credit system. Second, we must devise an approach which frees our banks of higher risk loans, so we are in a position to benefit from that economic recovery emerging in the United States and Europe. Without the functioning banking and credit systems that NAMA is to create, Irish businesses will not be able to grow and develop their products for export to these, our main trading partners.

The Government has acted consistently and coherently to address the current financial difficulties and chart our way through current difficulties in order to be ready for the upturn when it comes. Central to our success is the introduction and passage through the Houses of the NAMA legislation currently before us. The successful passing of the Lisbon treaty referendum is also critical to cement our central position within the European Union.

We must consider and act on the McCarthy report recommendations and those of the Commission on Taxation, so that they feed into the framing of the upcoming budget. Hard and unpopular decisions will be taken to bring our public finances into better order and pave the way for a return to economic stability. Successful outcomes of these measures will demand that the Government, businesses, banks, the public and all other stakeholders accept the gravity of our situation and work together to ensure we continue on the road beyond the current crisis and on to recovery. By working together we can get through the current difficult economic environment. We have done so in the past and there is no reason we cannot do so again.

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