Jimmy Deenihan (Kerry North, Fine Gael)

This is the fourth time we have come back to the House to discuss this crisis. First, there was the guarantee, next came the capitalisation, next was NAMA and now we have this chapter. I ask whether this is the last chapter, but I doubt it is.

The Minister and the Government give the spin that Ireland has been recognised internationally for taking corrective action. The Minister of State, Deputy Barry Andrews, and I were in America recently and that is the line being taken there. While the Opposition does not deny this is the case, those in America making that commentary are not living in Ireland, do not realise there are nearly 500,000 unemployed and that we have major difficulties across the spectrum, be it in education, health or otherwise. The spin that is given abroad is not the reality on the ground in this country.

There are no guarantees whatsoever in today's process. I know the Government has asked the banks to lend €3 billion to small business but there is no guarantee this will happen. The regulator has put pressure on the banks in regard to core tier 1 capital requirements. From where will that money come? The only possibility is that it will come from the Government because it will not come from anywhere else. The banks will be saving money, not giving it out - that will be the pressure on them, and it will not change. Small businesses will close every day. It is only since January that this pressure has really come on. I know of viable businesses that were depending on overdrafts but these have been withdrawn and they are simply closing their front doors. There is nothing in today's statement that convinces me there will be any change after today.

While I note ISME has welcomed the proposals by the Minister, it too has expressed concern that this may not mean there will be an increase in lending to small businesses throughout the country. A number of tourism enterprises are currently gearing up for the summer but they need cash flow and overdraft facilities because it is normally at the end of the year they come into profit. If they do not get these guarantees from the banks, they will not be able to start up business.

Following today's announcement, the taxpayer is facing a bill of €40 billion and counting, mainly for bailing out Anglo Irish Bank. It is difficult to explain to people how those who were involved in Anglo Irish Bank can have property all over the world and enjoy their summer in the Mediterranean, South Africa and elsewhere when the people here must suffer in paying that debt. The people are not fools. They know how they are being penalised and public servants know they have had their salaries reduced. Much of the public service dispute was an expression of anger at what has happened, as much as anything else. People cannot understand why 70% of the taxpayers' money which is being allocated to recapitalise the banks is going to one bank which is a dead end, will not lend money to anybody and will do nothing for this economy. It is difficult to explain how this is so and why the Government must prop up Anglo Irish Bank.

As Deputy Richard Bruton said earlier, the Government is throwing good money after bad with Anglo Irish Bank. Fine Gael's policy to wind up Anglo in an orderly fashion and allow the creditors to recover whatever value they can is now becoming more and more relevant. The Government's argument against such a course of action is based on trying to scare people into believing that any option but its own is too costly, which simply is not true. The Minister, Deputy Brian Lenihan, should publish the evidence on which he is basing his decision regarding Anglo so the public and relevant experts can make an informed judgment on the Government's strategy.

This is what we have been asking for but information from the Government is not forthcoming. It is frightening when one considers that, through this action, we are doubling the national debt to €115 billion. How will we and the next generation cope with this into the future? Today will go down as a watershed in the economic history of this country. This decision will be there to fester and to affect our economy, taxpayers and services for the future and will reflect very poorly on this Government.

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