Enda Kenny (Mayo, Fine Gael)

On the basis of this report the people were informed we were proceeding with NAMA. If it was not all so tragic it would be farcical. I would like the Minister to produce the evidence of how that 11-page report was treated, the consultations that were held on it, the discussions and the interpretation that has resulted in proposing the introduction of NAMA. In order to understand the basic thinking behind the NAMA structure, we need only go back to what the Taoiseach said in a radio interview some time ago: "The Government has to write whatever cheques are necessary in the interest of maintaining financial stability". In all my years in this House I have never heard such an irresponsible statement. No wonder the share prices and bond prices of the banks have rocketed in recent months. The financial markets are not stupid. They know when Government interferes here, there is money to be made and that is what they are doing. They know an easy mark when they see it. Instead of defending the interests of the Irish people, the Taoiseach has waved the financial flag of surrender. Stockbrokers this morning must feel as though they are getting all their bonuses at once. I can almost hear the clink of champagne glasses as the markets toast the long and healthy life of a Government that has caved in to their demands.

Whatever way one looks at it, NAMA is an appalling solution to an economic collapse overseen and orchestrated by the two parties in Government. The IMF has confirmed that Ireland is suffering from the worst economic crisis of any of the industrialised nations. Countries that used to look upon us with envy now look upon us with pity. As I have pointed out before, German, French and British newspaper headlines proclaim the end of their recession. They have moved on. In Ireland, however, the headlines are about job losses, worsening Government finances and increasing social misery; and now we face the nightmare scenario of rising interest rates while we are stuck at the bottom of the economic cycle.

It is exactly 12 months since the bank guarantee, which this party supported in the interest of having a vibrant and competitive banking sector, was put in place by the Government. Over these 12 months the Government has increased the tax burden considerably but failed to stop the rise in public spending, as was pointed out so clearly by Colm McCarthy on many occasions. In the same time unemployment has increased massively without any real jobs package from the Government. The Government has talked about credit flowing but nothing has happened, despite the State's injection of €7 billion into the banks. We have had 12 months of delay, failure and uncertainty.

After all this, we are asked to trust NAMA. Why should we, given the Government's record? Only a few weeks ago, the Minister told us the loan-to-value ratio of the transferred loans was 75%; in other words, there was a 25% equity cushion. Yesterday we learned that the true figure is 88%. What other figures is the Minister getting wrong? Are we supposed to trust the bankers? I will give an example. I am not a banker and have little involvement with the banks. God knows, my account is overdrawn most of the time. However, I went to meet with representatives of the banks last year with Deputy Bruton and some of our economic people. We had some straightforward discussion with them. I sat in the headquarters of Anglo Irish Bank in St. Stephen's Green for two hours and was given a superb presentation by the former chief executive, whose salary was of the order of €3 million. That person said to me that every single loan was individually assessed. Where did I hear that yesterday? From the Minister for Finance, who said every loan was subject to individual evaluation. I sat in that office and was told there was nothing wrong with Anglo Irish Bank, that there were no speculative runs or overhangs, that there were no transfers of money between that bank and Irish Nationwide, and that there were not people in that bank who had been allocated €30 million in bank shares to get over the overhang problem. Before we left, I asked whether there was anything else we should know about this bank, and I was told there was nothing wrong with it; it was the strongest bank in the world.

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