I am pleased to have the opportunity to add my voice to the debate on NAMA. As far as I am concerned, this is the most important economic legislation debated in the House in the history of the State. It is important for the State, business and ordinary citizens.

We are living in unprecedented times from an economic point of view. The people on the street are nervous. The discussion on NAMA is causing confusion for many people. They are confused about what it will mean for them and they are caught up in a political debate about whether it will be good for them. They are looking for positive, well informed leadership to lead them out of this crisis currently being experienced.

Some of my constituents are angry that we face economic turmoil, some are confused as to how this will improve our situation and some are disillusioned with the issue being clouded in confusion and politicians turning it into a political football. Many of my constituents recall the 1980s, a time when interest rates were in the region of 20%, emigration was rampant and jobs were non-existent. They recall much harder times than we are currently experiencing. However, I do not wish to detract from the seriousness of our current situation. On the other hand, many of my younger constituents do not recall harder times and have only lived through the boom years. They too are concerned and do not envisage how they will cope with less disposable income. On a more positive note, I am a firm believer in our ability as a nation to face this matter and deal with it responsibly.

NAMA is a credible solution to our problems. It will not let the banks, the builders or those who have done so much wrong off the hook. Fianna Fáil is not in the business of letting anyone off the hook. Those responsible for wrongdoing will be made answerable in due course.

There is no doubt that in recent years our banking system has let the country down badly. The banks have shown reckless behaviour and I am confident that those responsible will face appropriate consequences in due course. There has been much discussion about this legislation was a bailout for banks and developers. It is not about bailing out banks, developers or anyone's friends. It is about bailing out a country, that is every man, woman and child for generations to come. Without a properly functioning banking system our country would sink. We as legislators must take responsibility for eradicating this danger and building a fully functioning banking system to bring our economy back from the brink.

Some may claim I am being dramatic with such strong words but the situation is that serious. NAMA is the most creditworthy solution to our banking problems. It has been thoroughly planned and has the backing of the IMF, the OECD and the ECB.

Alternative solutions have been proposed by the Opposition, none of which were convincing. The Opposition has not even managed to cost its supposed solutions. The Labour Party's proposal to establish an asset management agency with a different name would impose a 50% discount on loans being transferred to the agency which would lead to the State having to recapitalise the banks in full, achieving the Labour Party's goal of a State-owned banking system. It would also be in violation of European Commission regulations.

Fine Gael wants to follow the Lehman Brothers model with the establishment of a new magic bank that would borrow €30 billion from the ECB. However, the problem lies in that the ECB would demand collateral, leaving the State to provide the magic bank with €50 billion to €60 billion in bonds, a nonsense. It appears to be a case of finding any solution rather than supporting the Government's solution.

This is a very irresponsible Opposition. It has been in the business of finger-pointing for some years. When times were good, it wanted spending increased. It was not that long ago it demanded stamp duty be abolished. If the then Minister for Finance, Deputy Cowen, had acceded to these demands we would be in a fine mess now. Now the Opposition claims the Government is spending too much. It does not know whether it is coming or going.

The Government takes this matter seriously. It will not walk away from the economic situation in which we currently find ourselves. The NAMA Bill has been drawn up on the basis of expert advice and counsel available to the Government from the NTMA, the Financial Regulator, the Central Bank as well as other financial and legal advisers. Similar solutions have been applied in other countries and have led to successful outcomes.

We are endeavouring to introduce legislation which will save our economy from further crises. This is similar to last year's State bank guarantee for deposits. That courageous action saved our banks from collapse. We now have no option but to examine how to rebuild our banking system through NAMA. Failure to do so would mean many would not be able to get credit from banks. The current crisis needs to be halted or our economy will never improve.

We must ensure those businesses and individuals which are surviving and making profits are facilitated for credit. To do so the banks must be in a position to access credit. NAMA will clear the balance sheets for these banks to return to basic lending functions. NAMA proposes to buy land and development loans and certain associated loans from the banks at prices well below the current book value. They will be managed over time to achieve the best possible return for the taxpayer. The banks will be smaller, cleaner and better funded and will be in a position to focus their resources on their core function - that of lending to those who require credit.

There has been much debate about the valuation of these loans. The Minister for Finance announced last week that there will be an estimated aggregate discount of 30% but that each individual loan will require a separate valuation once the Act commences. There is much attention to detail in this proposal and I commend the Minister's diligence on this.

I welcome the proposal that any financial institution participating in NAMA will be required to restructure its operations which will lead to a reformed and reinvigorated banking system. It is vital we learn from mistakes and ensure they never happen again.

I commend the Minister's endeavours to introduce a legislative regime to deal with distressed financial institutions which will ensure deposit holders are protected while maintaining the competence of the international markets. Aside from the obvious benefits of NAMA to the banking sector and the positive knock-on effects it will have for businesses and households, there is also a noticeable improvement in confidence in our economy. This has led to a reduction in the cost of borrowing for the State, a welcome development.

There is the possibility that NAMA will be in a position to facilitate various Departments for their requirements such as schools, parks and so forth. In the past they had to pay ludicrous sums for such projects. Under this Bill they may be afforded first option on the disposal of such properties.

Over the past year, the Government has at all times taken the necessary tough decisions, many of which were harsh for many to bear. We have not evaded our responsibilities to be popular. We have implemented the changes necessary to bring about stability when required and will continue to do so. There will always be critics who believe things could have been done differently. However, I have the fullest confidence in the Minister for Finance to ensure the greater good of our citizens is kept at the heart of any decision the Government must take in the next three months.

I commend the Bill to the House.

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