Enda Kenny (Mayo, Fine Gael)

The projections will be out of date next week, even before the budget is delivered. The reckless bailouts have been at the core of the Government's failure to restore domestic and international confidence. The mantra by the Minister for Finance that bailing out reckless banks and their investors was necessary to protect Ireland's credit rating has proven to be a catastrophic misjudgment.

In previous times, the Taoiseach's predecessor wrote blank cheques to his predecessor. The Government has gone one better in that blank cheques have been written from the taxpayer to Anglo Irish Bank and other reckless lenders to bail out their investors. This blank cheque policy has destroyed Ireland's creditworthiness. If it were not for the historical and potential future losses for Irish taxpayers arising from the Government's banking policy, our public finance problems would be judged by the financial markets to be difficult but manageable.

I believe in this country but I will not be bound by the Government's four year plan. As I stated yesterday, while I accept the targets as being clear, the proposals and a number of issues in the plan will be renegotiated.

During the past two years, the Government had a clear choice between protecting the State and its people or bailing out reckless investors and even more reckless bankers. It chose the latter option every time and forced the taxpayer to take responsibility for the massive debts built up by Anglo Irish Bank and others.

I met with a senior team from one of the world's largest investment companies last week. It described the National Asset Management Agency as a bureaucratic monster that was destroying value and confidence in Ireland's economy. NAMA has paralysed the property market. If one speaks to any auctioneer or anyone involved in property, one will find that nothing is moving because everything is blocked up in NAMA.

The scams that are taking place have become evident. Some developers seek to make a killing on funding from within NAMA to complete particular projects. They deliberately ask potential subcontractors to overprice works in order that a pay-off can be made. This issue needs to be addressed because NAMA has paralysed and caused gridlock in the property market.

The Fine Gael Party was the first party to argue that it was completely unfair for Irish people to shoulder all the losses arising from the banking crisis, whether through nationalisation or the establishment of the National Asset Management Agency. It was only fair that people who had lent recklessly to the banks should share the pain. It is a basic rule of capitalism that if one lends recklessly to failed institutions, one must take some of the consequences.

The European Commission has confirmed that the next Government need not be bound by the four year plan of what is now a tired, unimaginative and demotivated Government. As I stated, I accept the deficit target of 3% of GDP by 2014. What is needed to achieve this target is a Government with a strong, clear mandate from the people. Once people have given their verdict, a new Government can implement its plans by placing a strong emphasis on a number of areas. It would first cap taxpayers' exposure to further banking losses. Second, it would introduce real economic reforms to spur growth and jobs and, third, it would create a smaller, better, and more effective State, as set out in Deputy Bruton's document, Reinventing Government.

The bedrock of any credible economic plan agreed with Europe must be a new banking policy which limits the State's exposure to further losses from the banks. We all agree that we need to repair, restructure and adequately capitalise Irish banks to underpin our guarantee on savings and get credit to business flowing again. The Taoiseach should talk to the owners of small businesses. Despite what has been said, many of the conditions laid down by banks preclude businesses from securing credit. The other day, I was contacted by a man whose company has an annual turnover of €1.5 million. He had his €40,000 overdraft facility reduced to €5,000 and told me one could not run a sweet shop on such an overdraft.

While I agree with the Taoiseach's sentiment that it is necessary to free this up, he is not in a position to make it happen. Although economic reforms are really needed to spur growth and jobs, the plan does not spell this out in any detail. This is nothing like what can be achieved or like the potential that exists. In that respect, this document is both a disappointment and a failure. The Government has done nothing to overhaul the regulatory and economic bureaucratic red tape. When one sees the evidence of what is strangling those who wish to contribute to the well-being and future of the country, it is evident where the Government has been strangled by its inability to deal with this issue.

If we are to have a nation that will measure up by 2016 and beyond, we really must change the way in which we do business. This document makes no reference to leadership by example from the seat in which the Taoiseach is sitting. Throughout the Government and local authorities and right down the line, there is no evidence but only aspirations as to what can be achieved. In this sense, this document has been a gross disappointment because people expect leadership from the front. They want to see it at the centre and to be shown the way from the top down. One should appeal to Irish people, particularly that young generation whose representatives are leaving the Gallery at present, as they are the future of our country. However, the national recovery plan will not realise the potential that exists. Whenever the population decides to elect whatever Government it wishes, if I have anything to do with it issues in this plan will be renegotiated and the next Government will not be bound by them.

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