Peter Mathews (Dublin South, Fine Gael)

The Nyberg report does not bring any startling news; neither did the Honohan report. What is startling in some ways is the fact that the Honohan report had as its termination date the date of the blanket guarantee, while the termination date in the Nyberg report is 15 January 2009. What has really torn the country apart, what we have all agonised over and what we have failed to scope properly is what has happened since. In April 2009 the NAMA project, the mechanism for beginning to recognise the loan losses in the banks, was mooted. Only then was there an awareness that there were massive losses in the economy that had to be measured. Having been measured, they have to be allocated and borne by either the investors in the banks which created the assets that imploded, the long-term investors such as bondholders and the citizens of the State.

Is it not an awful shame that we did not have people skilled and articulate in reviewing what had happened and that they did not address what had happened in the period post-15 January 2009 to date? We should remember that Professor Nyberg only received his instructions in September 2010; therefore, between January 2009 and September 2010 there is a brain dead period in this country. That is a shame because we could learn a lot.

I wish to move on to discuss where we are. I commend Deputy Paschal Donohoe for commending Deputy Stephen Donnelly, which is what it is all about. We must get into sharp focus in a new Dáil the exact picture of where we are, in so far as we can, and tell that story to the people, on whom we rely. At this point, the banks rely almost exclusively on the European Central Bank and the Central Bank - a mixture of both - at a level of €170 billion or €180 billion. On top of the sovereign debt to date as a result of the fiscal imbalances and deficits, the total debt adds up to some €240 billion or €250 billion when one bears in mind the oncoming debt of the package entered into last November, because there are losses of €100 billion that are only now being acknowledged. That is too much for the country to bear.

We must have a banking sector that works; we must capitalise it and energise it with fresh, new, cleaned out management and boards. That operation has begun and will take a little time to complete, although the energy and purpose are applied. We must make sure our creditors - the European Central Bank, in the spirit of solidarity, because that is the phrase which allows it to give assistance to a country such as this, and the remaining bond investors - will take on their share of the losses that have emerged in our banking system. We must do it together in a spirit of co-operation and truth. We must do what is right and again find our courage to do it.

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