Martin Mansergh (Tipperary South, Fianna Fail)

I refer to the statement made by Deputy Ring and I wonder whether his decibel levels sometimes breach health and safety standards, especially for those sitting next to him. I am long enough in the building to remember the support the Fine Gael and Labour Party Government had to give AIB in 1985 in respect of the ICI operation. That was supported by the then Opposition.

I welcome the setting out by the Minister for Finance of a comprehensive statement of strategy and decisions in regard to the opening phase of NAMA operations and the recapitalisation of the banks. While it is often a natural, human, not to say political instinct to put off facing up to difficult problems, the Minister and the Government have taken the bull by the horns and set out the full extent of the problem, however unpalatable - it is extremely so - and how it must be tackled. Concealing problems is not the road to recovery either for banks or this society.

NAMA has continued to be hotly debated ever since the legislation was passed. It has been claimed or otherwise implied that what the Government is doing now will put future generations in hock. However, it is the irresponsibility of property developers and lending institutions that has done this. The Government and other authorities have been criticised for not having done enough to stop the madness and sometimes for adding to it. From time to time, we all had political or partial insights into the dangers but none of us consistently so. Prominent Labour Party Deputies frequently boasted that we were the second richest country in Europe, which was true on paper, but only on paper, and that the country was awash with money. Those who wished to restrain over-lending or development were cast aside.

We have many lessons to learn about the recent past, not least about not putting all our eggs in one or two baskets, the need to opt for a more cautious or sustainable approach to development, which will inevitably mean less exciting policies in some cases, and learning to say "No" to schemes that appear to promise large jobs and profits. Problems were greatly exacerbated by the international crisis in banking confidence. Deputy Burton was correct to state the problem built up slowly but then crystalised with the collapse of the Lehman Brothers. It is risk-free to make suggestions with regard to alternative acts or courses of action that should have been taken, whether such suggestions come from the Opposition or the media. However, the Government of the day alone carries responsibility for the consequences of its decisions in an emergency. Perhaps this is why the changes made last week were cautious. Only the Government has any recent experience of the pressures of crisis management, although there are still some on benches opposite who have experience of the crisis of the 1980s.

Repeated allegations are made about the proximity of the main Government party to bankers and developers. Perhaps someone would like to explain what in today's statement or in NAMA's decisions represents favours to either group.

Creating confidence at home and abroad is vital to our recovery. Today's statement represents strong Government decisions, not those of a Government short of either strategy or ideas. The decisions create a greater degree of certainty. They free up the banks' ability to lend, which will be as important in the time of recovery as it is in today's depressed circumstances.

Like others, I welcome the direction to the two main banks to lend €3 billion as part of a seed capital fund and for environmental, clean energy and other projects. The credit review or appeals process to address firms denied necessary credit is very valuable. The Minister has explained why Anglo Irish Bank was systemic and why it would not be a good option to close it down either in the shorter or longer term because that would greatly increase the liabilities faced by the taxpayer. The Government is pragmatic about the ownership of banks. It is not an ideological principle.

Deputy Crawford called on me to meet the Irish Presbyterian Mutual Society and I have done so. However, 98% of its assets and holdings are in the UK and it is the responsibility of that country. In this matter there is a dimension of defending the economic independence and viability of the State, whether in budgetary or banking decisions. I welcome the realistic draft agreement reached last night.

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