Michael Kennedy (Dublin North, Fianna Fail)

The only point on which we will all agree is that the reckless lending practices of banks have brought about the banking crisis. As far as I am concerned, the Government's actions over the past two years has saved this country from financial ruin. In putting forward the new ELG scheme, the Government has effectively followed the European model that 21 other countries have adopted. I do not think anyone in the House would dispute that Germany is the strongest economic entity in Europe. It has this scheme in practice and if it is good enough for Germany, it is certainly good enough for Ireland.

One should recognise that the Government has always acted in a responsible way and has not been like the Opposition, which is taking cheap political shots. The Governor of the Central Bank, our new Financial Regulator, the EU and the ECB have all backed this scheme. It is not as if it was dreamt up by some little minnow. Fine Gael and the Labour Party should recognise that. This plan has been carefully thought out at the highest level in Europe among all of its expert bankers in light of the crisis Europe has experienced.

As far as I am concerned, I am happy that what the Government brought about two years ago has worked out well. It has achieved a profit of €1 billion for the State, with no losses. Deputy Perry referred to insurance, of which I have some experience. Those who make insurance claims, generally speaking, are penalised.

Deputy Burton referred to Northern Rock. I wish to restate what I said some months ago. The UK Government poured £850 billion into its banking system and £30 billion into Northern Rock in order that the people who queued up outside its doors all across the UK and in Dublin could get their money. In the US, some $12.8 trillion has been put into the banking system in order to make sure it stays stable. Recently President Obama announced that he will spent another $500 billion to try to revitalise the economy and keep the banking system going.

For those who want to criticise the Irish Government or try to draw comparisons that exist here, the reality is that right across Europe, the USA and the UK banks have failed and have severe liquidity and insolvency problems. The UK and US Governments had the privilege of printing new money, unlike Ireland and European countries where we borrowed from the ECB and other international lenders. They printed their own money; we have to earn it or borrow it.

In terms of reputation — I come from an insurance background and I have dealt with credit insurance — if people default on loans they get a black mark against their records and they find it exceptionally difficult to get future lending or credit. That is the sad reality of life and it is wrong for anybody in this Chamber to say we should let Anglo Irish Bank go to the wall. We would have everyone in Ireland queuing outside their banks, building societies and credit unions to take out their money and put it under the mattress. That is the reality.

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