Joanna Tuffy (Dublin Mid West, Labour)

Yes. As such, we need legislation to ensure that people do not get away with the types of activity that have been occurring in banks and financial institutions in recent years. This is the least that we should do. The Minister could play a significant role in this regard.

In terms of aims and motivation, there is a strong relationship between the world of organised crime and the world in which the activities I have mentioned are not crimes at all. I read the EU's organised crime threat assessment, a report Europol published earlier this year. One of its chapters is on moneylaundering and discusses how many of the proceeds of crime are turned into cash. The problem for criminals is that they want to be successful and many view themselves as business people. They want to be seen as being legitimate. Regarding cash, the report states: "They cannot make use of it in longer term strategies or extend the quality of their criminal lifestyle; nor can they improve their status in society or legitimise themselves with cash derived from criminal proceeds".

Elsewhere, the report discusses how moneylaundering is a key component of criminal activities. We can be sure that many of these criminals use our financial system despite our laws. Irrespective of which laws we have in place, they will always come up with more sophisticated ways to get around them or use loopholes. However, they want status and to be seen as legitimate, for which reason they launder money. They are also subject to the profit motive. Newspaper reports outline how they have the fantastic houses. Many live in Spain, for example, and have lives that people would envy. They want the type of lifestyle desired by many of our business people.

We should be wary of another issue raised in the report. Criminals will try to take advantage of our economic crisis. They will use the black market and, given the unemployment problem, irregular or undeclared labour. If the black market grows, there will be an impact on entrepreneurs who want to be legitimate and law-abiding citizens, but might become more open to colluding with organised criminals if they are in trouble. Inequality and alienation in local communities are also exploited to help criminals make a profit. For example, they exploit communities in which drug addiction is rife.

There is a considerable relationship between organised crime and the legitimate economy. The Minister needs to examine aspects of the latter that should be considered criminal, and the sooner the better. Our society needs to debate this issue. It should not be the case that the Minister or the Department of Finance will simply present a Bill at some point. It is possible that the Minister will deal with some of these issues. Our society needs to consider carefully how it wants to move forward in terms of banking regulation and which aspects of financial speculation should be criminalised. The Minister should consult before introducing a Bill. Interested parties could appear before the House's committees and Opposition Members could be heard.

Other countries have experienced economic crises and financial scandals and speculation, but they have learned and introduced tougher regulations. They have not been hit as hard by the current financial crisis. We must ensure that we put similar measures in place in our financial system.

According to the Europol report, one way to launder money was for organised criminals to invest in construction, real estate and land speculation. I do not know the Irish picture. If the Minister has any information in this respect, I would be interested in getting it. The report shows the interface between legitimate speculation and illegitimate activities. Ireland must examine this matter, as we can be sure that some of it was occurring in our country.

Some elements have been common, including the culture behind much of what transpired. I refer to the financial speculation, the lack of regulation and the idea that people should get really filthy rich. The Labour Party in Britain went along with that type of philosophy, and it was wrong.

There was an engine of greed and inequality, which promoted our land and financial speculation and which also promotes organised criminal activity, and that is one of the issues we need to address. I agree with the Minister that he should be tough on crime, but we also need to nip crime in the bud. It is a murky world. Those on whom crime has the worst impact are the ones most disadvantaged in the community, but it also thrives on that type of inequality. In terms of that same report from Europol, these people are linked with many abhorrent criminal activities. Deputy Charles Flanagan mentioned human and sex trafficking activities. Many of them use violence to control communities, to control their people, to dominate in the market. However, these people started out in local communities, which they exploit, which experience inequality and which have drug problems. They themselves were once children for whom there was a little hope and they ended up getting involved in this activity. I have no sympathy for them whatsoever and they should be dealt with toughly, but we need to stop, not only the demand for drugs but also people getting involved in criminal activity.

A report on inequality in Ireland was launched by ICTU yesterday. One of its findings was that the gap between those at the bottom and those at the top in terms of income inequality widened in the years 1987 to 2005, which, presumably, is as far as the report covered. I read the newspaper reports rather than the report itself. That gap widened in other countries as well, such as the United States and Britain. This did not happen in all countries because some countries reduced the gap in income inequality over those years.

There has been much research on the matter and much talk in Britain, and some here. Mr. Vincent Browne, the broadcaster, speaks often about a book in Britain entitled The Spirit Level: Why More Equal Societies Almost Always Do Better. Basically, the book looks at studies in developed countries and 30 US states over the past 30 years and compares them in terms of income equality and then looks at how they fare in terms of life expectancy, health, etc. One of the areas it looks at is how those societies fare in terms of combating drugs and crime. If found, for example, that people in the more unequal countries have higher death rates from drug abuse. Similarly, the countries with more inequality have more people in prison, higher rates of crime, more teenage pregnancies and more mental health difficulties, which is another issue related to crime.

If we want to do something about crime, apart from bringing in legislation we also need to deal with the issue of inequality. Much evidence on inequality is available as a result of substantial research. The evidence about drug abuse comes from the World Drug Report 2007. These are studies that have been carried out from numerous sources and which have been collated in the book to which I referred. If we want to deal with the issue of crime, from minor crime and zero tolerance right up to serious crime, one of the issues with which we need to deal and which the Minister needs to take on board is inequality in society. We need to ensure we bring about more income inequality in any measures, including public expenditure, taken by the Government from here on in. The Minister needs to ensure that the measures to combat drug abuse in communities are not impacted upon by the cuts. We need to keep up the funding for drugs task forces and for other measures which help deal with drug abuse. That is very important. Organised criminals thrive on the sale of drugs and when it comes down to the end of the chain, it affects people in local communities, such as the community I represent. I have seen them myself. When canvassing at certain shopping centres I try to avoid people who are selling drugs. It comes down to people on the ground and we need to do our best to stop the demand for drugs from people who live in local communities.

I will be dealing with this Bill on behalf of the Labour Party. I have not had enough opportunity to really go at length into the specifics of the Bill, but I am interested in the new provision about "politically exposed persons". What about "politically exposed persons" who live in the State? Are they covered already? Why are they not covered by this Bill? That is a matter we might explore on Committee Stage.

On gambling, I received correspondence from the private gaming clubs' representatives that the sector welcomes its inclusion in the Bill. This, in itself, is obviously welcome, but the Labour Party would have concerns about private gambling clubs. We are in tough economic times and some may try to use gambling as a way to get out of their financial problems, and the question of whether it is a good idea to legitimise this type of activity is one we need to discuss further on Committee Stage as well. I look forward to working with the Minister, his staff and the other Deputies on this issue.

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