Dáil debates

Wednesday, 27 October 2010

Macro-Economic and Fiscal Outlook: Statements

 

4:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)

The calculations of those figures have been wildly inaccurate. Up until two months ago there was talk of the need to reduce the deficit by €7.5 billion over the next four years but now it is to be by €15 billion. Some in the European Union state the figure should be €20 billion. We need to concentrate, not only on getting policies right in this House but also on their execution, which is crucial.

On banking policy, a new CEO will be appointed to AIB. I would like a Minister to tell this House what is that person's job remit. I am not sure whether it is to run AIB as a commercial entity in the interests of a future bank system or for the benefit of the economy. If a CEO going into AIB were to run it for the shareholders of the bank he or she would probably cut the staff by one third, raise interest rates and do away with the existing defined pension schemes for staff, but the State will not allow a CEO to do that because it now has a majority stake in the bank. Banking policy in Ireland has totally distorted the market because now politics is determining banking policy, which means that there will be no new banks without capitalisation problems coming into Ireland to lend into the Irish economy in the foreseeable future. We have a totally false banking system, which is a false economy and which cannot work. I hope Ministers will try to address some of the issues that I have only had seven minutes to raise.

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