Michael McCarthy (Cork South West, Labour)

I welcome the opportunity to contribute to the debate on the motion. I agree with Deputy Costello who stated that in his heart he would favour the motion but that his head indicated we should support the Government amendment.

There is not a person in the country who is unaware of the economic crisis or the extent of the banking crisis and all the misery these have wreaked upon thousands of hard-pressed families. There are many people who are unemployed and we have witnessed the return of emigration. All of this is due to the economic collapse which has occurred. What is needed, now more than ever in the history of the country, is strong and decisive leadership. We do not require people to offer simplistic, quick-fix solutions to get us out the mess in which we find ourselves. We are where we are and no one wanted us to get into this position.

Deputy Costello is correct. When the bank guarantee was introduced both here and in the Upper House in 2008, no one realised the full extent of the crisis the country was facing. We all hoped there would be a soft landing and that the recession would not last more than one to three years. However, three years on matters do not appear to be improving. We must be mindful of what occurred in recent years, but, more importantly, we must focus on what can get us out of the situation in which we find ourselves.

The Government inherited a banking crisis that is profound in nature. The scale of that crisis was made all the greater by the extensive blanket guarantee provided for a number of financial institutions in 2008. I reiterate what Deputy Costello stated, that only one party in this and the Upper House opposed the introduction of the bank guarantee. That party was the Labour Party. We did that because we felt it was the right thing to do.

In a short period the Government has done several things and has reached a number of milestones. A significant aspect is that it has renegotiated the EU-IMF deal. According to other parties towards the end of last year and the start of this year, that was unthinkable. That has been done. The term has been extended and the interest rate has been reduced. On another measure, in the height of all of this economic crisis, we have restored the minimum wage.

I find it difficult to listen to Deputies, namely Deputy Doherty, speak about the way out or the solution because I was in the Seanad when he donned the green jersey and voted for the blanket guarantee. That is much of the reason-----

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