Liam Twomey (Wexford, Fine Gael)

I thank Deputy McGrath for introducing this Bill. It is very useful and important.

The Financial Services Ombudsman, the Minister for Finance, Deputy Noonan, and Deputy McGrath have had a clear approach to getting the balance right. When introducing legislation such as this in the current environment, there is always a concern that we could move from a total lack of regulation in the financial services sector to over-regulation. The latter has consequences also. Over recent years, banks and financial services almost bankrupted this country.

At present, there are three asset management agencies in the country: Certus; the Irish Bank Resolution Corporation, otherwise known as Anglo Irish Bank; and NAMA. These organisations and the pillar banks have approximately €100 billion in distressed assets. We do not know what will happen to them or their real value, now or in the future. The value of distressed assets is significant by comparison with our GDP.

It was the exuberance of probably no more than 100 individuals, including developers, politicians and senior bankers, that brought us to the point where the country is now trying to dispose of €100 billion in bad assets, to get the public financial system back in order and to resuscitate financial services and banks, which we will be doing for the coming years. It is weird that only around 100 people brought us to this point.

We must avoid being too populist in dealing with the crisis. We must be careful that we do not let the pendulum swing towards over-correcting the under-regulation of the system. If we did so, we could run the risk of making a bad situation worse. That is why I admire the cool, calm approach that the Minister for Finance, Deputy Noonan, and the Taoiseach are taking, both in Europe and beyond, to restoring our reputation. I am very proud to observe this as a member of a Government party.

I remember going to mainland Europe shortly after the Government came into power. To say we had a battered reputation in the European Union at the time would have been to underestimate the seriousness of our circumstances. People were beginning to feel Ireland was more than just a basket case. They felt that we had thrown caution to the wind. A very tough battle has been fought by a number of Ministers, particularly the Minister for Finance, Deputy Noonan, and the Taoiseach to help restore our reputation. I am glad to see members of Fianna Fáil, such as Deputy Michael McGrath, with whom I recently travelled to Berlin, are working to get this country working properly again such that we can serve the people as expected of us. I hope this approach will continue in the House on issues such as this. I hope we will continue with such co-operation, not only in the Dáil but also in the Seanad and at meetings of the Committee on Finance, Public Expenditure and Reform, so we can best represent the people we serve. There is a considerable crisis that we need to deal with and we are still not out of the woods. It is important, therefore, that we try to work together as much as possible.

I recently wrote to a number of colleagues, but not only to those in Fine Gael and the Labour Party, in my constituency of Wexford asking them all to work together regarding the financial stability treaty on which we will vote in May. I am delighted to state members of the Fianna Fáil Party have agreed to our working together to send a clear message to the people in my constituency on the importance of the treaty. I hope this co-operation will continue. There is nothing wrong with having policy differences where they are genuine but sometimes too many people in this House take a populist and political approach to what are vital national issues. This is to the detriment of the people in the longer term. I hope we can continue with our approach to doing the right thing for the country. I will continue to work with all Members in this regard.

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