Ned O'Keeffe (Cork East, Fianna Fail)

I am pleased to speak in this important debate. I speak as a Deputy for Cork East and I speak on behalf of my party which has been to the forefront in Irish politics. I cannot understand people who attack the banks. This is one of the great world recessions but it will not be fixed by bashing the banks and criticising them. The SMEs are getting money from the banks. The economy has shrunk by 20% and SMEs are distressed but there is only a 2% shortage in credit, according to the business newspapers I read every day. There is no point in putting pressure and stress on our Irish banks to fund SMEs when the foreign banks who came here and caused aggressive lending which led to the current problem, will not be asked to do the same. There will be cherry-picking of the best SMEs by the foreign banks and the Irish banks will try to manage and look after distressed SMEs.

I wish to address the issue of Anglo Irish Bank. I am a farming businessman. I would not hold Anglo Irish Bank in my portfolio but I would have it liquidated tomorrow morning and sold off. It is going to be a sore and a boil on the Irish Government and the financial system of this country so long as it is left in existence. It has been a disgrace to Irish banking, to the Government and to the Fianna Fáil Party. Along with other colleagues, I was one of the first to say that this bank would cause great trouble in the days and years ahead. I also said that the construction industry would bring tears to the people and the families involved and how right I was. My then Taoiseach, Deputy Bertie Ahern, said that people saying those things should commit suicide. I did not commit suicide and I probably never will but it was an outrageous statement when our whole economy was falling apart.

I want an answer to a question. Mr. Matthew Elderfield has been appointed as head of financial supervision. Mr. Elderfield worked in the financial services in the United Kingdom. In 2006 he went to Bermuda which was a British colony at one time. He has been in Ireland since last November. What was he doing in London when Northern Rock was on the eve of going bust? He is adopting a Draconian approach to the banking system.

Bank of Ireland and Allied Irish Banks have stood the test of time in this country and have served us well and honourably. They are in distress and difficulty now. Bank of Ireland seemed to have been given a bit more support from the Government and from Mr. Elderfield than has AIB. AIB has been more successful in serving our community on this island for many decades and will continue to do so. It has a number of assets abroad which are worth a lot. Fair play to the bank because it had the foresight to invest. It has banks in America, Poland and London. These are all worth €5 billion or €6 billion. Why make them sell in the next 30 days if there is going to be buoyancy-----

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