Seán Connick (Wexford, Fianna Fail)

Members should consider the collapse of Lehman Brothers bank in 2008. Obviously, this initially caused an extreme level of instability throughout the global financial sector. It also created significant movements of deposits, both corporate and personal, around the world and triggered runs on many banks in various countries. Ireland had its own domestic difficulties to deal with at that time, which coincided with the international financial crisis. These obviously included the collapse of the construction sector and the collapse in tax receipts, as well as the consequential heavy job losses and the lack of confidence in the economy that now is evident.

Previous policy had resulted in a low tax economy. While there has been much criticism in this regard, I note this is a young economy by world standards and as things had been going well during the previous ten years, people probably were hesitant to make changes as everyone had been enjoying the financial excesses. However, the country now has an opportunity to correct all this and to go in a new direction I believe this is being done and the Government has been obliged to make extremely tough decisions. While not all Members were very comfortable with such decisions, they had to be made in the interests of the future of the economy.

Everyone is aware of light-touch regulation, particularly in respect of the Irish banking system, which in hindsight caused much difficulty. However, the Government has moved rapidly in this regard. While I do not know whether other Members share my perception, it seems as though we have been in this crisis for ten years when in fact only a little more than 18 months have elapsed.

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