Enda Kenny (Mayo, Fine Gael)

Last Thursday was a black day for Ireland's economy and people. It was the day we were finally told the cost of the failure of the Government's banking strategy - €50 billion. It was also revealed that as a direct consequence of that, there will now be a need for a much tougher budget to be introduced because, we are told, the country will not be able to borrow money on the international markets next year. The reason is that the international markets do not want to lend money to Ireland, other than at exorbitant rates, because they do not believe the growth plan for the country which the Government has brought forward.

The announcements made last week have left hundreds of thousands of people shocked, confused and very angry. They felt that having taken on board salary cuts, pension levies, overtime cutbacks and reductions in services, they were making a contribution to sorting out the financial crisis and the economic situation into which the Government has led the country. Now they know the difference. Their money has gone and it has not made any appreciable difference.

For the past two years, we were told quite clearly that the banking crisis and the budget deficit were separate. After last Thursday, we now know that the taxpayer and the citizen will have to pay directly for the failure of the Government's banking strategy.

See this speech in context