Michael Mulcahy (Dublin South Central, Fianna Fail)

Everyone accepts that the severe recession which has affected the world since September 2008 was initially sparked by the financial crisis in the US. Similarly, any sensible person will accept that the first myth propagated by some of our opponents - that this country's recession is an entirely Irish creation - is a load of rubbish, given that Ireland exports over 90% of its produce and therefore depends greatly on world markets. The Government's response to this severe crisis has been sensible, steadfast and mature. If it had not introduced the bank guarantee scheme on 29 September 2008, there is no doubt that there would have been a run on the banks the following day. While Fine Gael had the courage to support that scheme, the Labour Party, as usual, flunked it when the heat came on. The Credit Institutions (Financial Support) Act 2008 provided for the banks to get some support in the form of a financial injection. The Financial Emergency Measures in the Public Interest Act 2009 facilitated certain emergency reductions in public expenditure. This Bill - the National Asset Management Agency Bill 2009 - represents the Government's latest response to this crisis.

It is fair to say that the Government, through the Oireachtas, has put in place a comprehensive legislative package in response to this serious crisis. With the exception of Fine Gael when it supported the bank guarantee scheme, the Opposition has been most unhelpful at every stage in this process. It has been destructive of the national interest. Opposition Deputies have consistently talked Ireland down, in comments which have been reported by financial media throughout the world. One has the impression that they are so desperate and hungry for power that they would say anything, even if it damages Ireland, if it increased their chances of getting into power. I do not think that is how one would describe a responsible Opposition.

I do not shirk from saying that the Bill discussion has had to be introduced because the banks and the financial regulators failed their shareholders, their customers and Ireland as a whole. Opposition Deputies constantly accuse the Government of having embarked on some kind of spending spree during the term of the last Administration and up until this crisis. They do not seem to remember their own speeches, even though they are freely available on the record of this House. During the debates on successive budgets, the Opposition berated the Government and the Minister for Finance of the day for not spending more money. They always wanted more to be spent. If one examines those budgets, one will find that when the current Taoiseach was Minister for Finance, he put the brakes on Government expenditure. The large capital sum that was built up by successive Governments since the establishment of the National Pensions Reserve Fund was available when it was needed to rescue the banks. Is there anyone in this Chamber who would prefer if we had spent the moneys in the fund several years ago? One of those who thinks the funds should have been spent on more schools and hospitals, etc., happens to be the finance spokesperson of the Labour Party.

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