Ned O'Keeffe (Cork East, Fianna Fail)

I would like the Government and the people to encourage Bank of Ireland and Allied Irish Bank to seek a rights issue rather than take further capital from the State. There is a buoyancy in the stock market currently and people will be generous enough to further capitalise the banks to which they have a great loyalty. I do not like to see too much State involvement in our banking system and there is a danger of that.

There is a theory that banks should lend money more often. If people do not have the ability to repay the money, there is no point lending the money by way of an overdraft or a loan. That is one of the issues which arises throughout the country. I have met several people who are not in a position to get additional finance from their bank but when one questions them further, one finds they do not have the capacity to repay it and they may not have paid previous loans or leases. We need to be very careful about placing people in further debt.

Earlier I listened to Deputy Shatter make a statement about Mr. Madoff in the United States of America who is in prison. The best of luck to him in that place. However, I do not believe he was a banker. He sold derivatives and was a financial intermediary who took money from people for investment and he abused his position. We have seen that happen throughout the world recently. I am not aware of any banker in America serving a jail sentence for activities in the money area.

I hope NAMA will do what it states, namely, put money into the economy and stimulate activity for the next decade. That is what it should be about. We have the support of the European Central Bank and if €50 billion is to be spent, it must work and be effective. I wish NAMA and the Minister, who has done great work on it, well. It is the first time we have seen anything like this in the country. I believe it is the first time something of this nature has been put in place in the world. I say well done to the Minister who has done an excellent job and has generated great discussion about our country and economy. I am disappointed we do not have the support of all sides of the House.

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