Jimmy Deenihan (Kerry North, Fine Gael)

Like previous speakers, I am glad to have an opportunity to speak on this motion. I have been listening to a number of speakers, including the Taoiseach yesterday. In the 1990s, I was associated with the seaside renewal scheme, which has come in for some criticism. The seaside renewal scheme revived and regenerated traditional tourist resorts which had gone into decline. It was a targeted scheme available to places like Tramore, Ballybunion, Salthill and Bundoran. It was in preparation when the rainbow coalition Government took over and was introduced by the Minister for Tourism, Deputy Enda Kenny. Where the scheme was properly administered and proper planning put in place, it was very successful. It has rejuvenated Ballybunion and changed the face of the town because Kerry County Council ensured that proper planning was put in place. One cannot blame the sprawls of County Clare, Achill Island and other places on the scheme itself. It generated economic activity and gave a facelift to places like Ballybunion but it was badly administered by some councils and developers throughout the country. The scheme could have been very effective if it had been properly supervised and if there had been proper local planning. Each resort should have formulated a plan before the scheme was applied.

When President Bill Clinton came to Ballybunion, the previous Minister for Finance, Deputy Charlie McCreevy, unveiled a statue of President Clinton. Deputy McCreevy claimed responsibility for the seaside renewal scheme. I heard him say it was his scheme and he was glad it was so effective and successful in Ballybunion. The Taoiseach should ask his predecessor, Mr. McCreevy, about his support for the seaside renewal scheme before he points the finger at Deputy Kenny. Deputy McCreevy was adamant on that occasion that he was responsible for the seaside renewal scheme.

One of the most effective tax incentives were the urban renewal schemes. The first scheme, which was introduced by the FitzGerald Government of the 1980s, rejuvenated the inner cities of Dublin, Cork, Limerick, Galway and Waterford. It was a very successful scheme. Some schemes worked because we do need incentives. They went wrong when they became politically motivated and were not targeted but allowed to become too widespread. Both the report compiled by Klaus Regling and Max Watson and the report compiled by Patrick Honohan show quite conclusively that domestic macroeconomic policy got us into this banking mess. The regime of light regulation, bad governance and poor and reckless lending by the banks was supported fully by the Government.

I recall a statement made by the former Taoiseach, Deputy Bertie Ahern, at a banking conference three or four years ago - perhaps a year before he resigned as Taoiseach. He praised the banks as the real drivers of the economy. I remember seeing a report on his speech, which did not attract much comment, on the 6 o'clock news. During that period, the banks got every support and encouragement from the Government to give people as much money as they could. That is on the record of the national conferences of the banks at that time. I am glad to have had an opportunity to say a few words on this motion.

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