Michael Kennedy (Dublin North, Fianna Fail)

I wish to share time with Deputies Frank Fahey, Thomas Byrne, Niall Collins, the Minister, Deputy Eamon Ryan, and the Minister of State, Deputy Billy Kelleher.

I welcome the opportunity to speak on the Bill before the House. While I congratulate to some degree Deputy Varadkar on bringing it forward, I do not believe that it will fulfil its purpose, namely, a reduction in business and consumer costs. However, I compliment him on taking the trouble to prepare the Bill.

The Government has clearly identified our main problems as the banking crisis, the credit crunch and overall budget deficit. These are the key issues with which the Government is dealing and endeavouring to get under control. We all recognise that reducing costs for business is important. However, without functioning banks in terms of the availability of credit, businesses cannot survive or thrive. This must be the first priority. The Government has agreed to recapitalise the two main banks, Allied Irish Banks and Bank of Ireland, to the tune of €6 billion over the next two years. It is vital that the banks start lending this money which will provide businesses with the stimulus they need to trade profitably and successfully. Any business person will agree that driving costs down is inducive to economic recovery. However, our priority must be getting our budget deficit under control and getting credit flowing again.

It is true that the Government has driven down costs. Energy costs have come down by 10%. It is hoped they will continue to drop as a result of new competition. Equally, the Government has banned upward reviews of rents. I make the point in respect of commercial rents that the trustees of many of our large pension funds are the people refusing to reduce rents. I believe they have a moral responsibility to endeavour to look after their tenants and to allow them trade more profitably than is currently the case. I appeal to them to be morally responsible. Deputy Penrose mentioned local authorities. A number of local authorities, including Fingal County Council, on which Deputy Varadkar and I served, have reduced commercial rates to businesses. It has shown the leadership we expect of all local authorities. There is no doubt but that local authorities have a role to play in this area and that they have huge budgets in respect of which they can bring about savings to business people.

The Government has also reduced professional fees by 8%.

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