Donie Cassidy (Fianna Fail)

Senators Fitzgerald, O'Toole, Alex White, de Búrca, Coghlan, MacSharry, Hanafin, Ó Murchú, Quinn, Ormonde, Mullen, Bradford, Regan, Ross, Twomey, John Paul Phelan and many other Senators highlighted their great concerns about the difficulties being experienced worldwide in the global downturn in the economy. As Leader of the House, I welcome the Government's decision to put in place, with immediate effect, a guaranteed arrangement to safeguard all deposits, whether they be retail, commercial, institutional or inter-banked, which covers bonds, senior debt and dated subordinated debt, which is the lower tier two, with the following banks, the Allied Irish Bank, the Bank of Ireland, the Anglo Irish Bank, Irish Life and Permanent, the Irish Nationwide Building Society and the Educational Building Society and such specific subsidiaries as may be approved by the Government following consultation with the Central Bank and the Financial Regulator. We want to bear in mind that this has been done — as was stated here — following advice from the governor of the Central Bank and the Financial Regulator about the impact of the recent turmoil in the internal markets in the banking system.

We all know that we have been leaders in the field in terms of the success of our economy, particularly the Celtic tiger, during the past ten to 15 years. The one great certainty that drove us forward during those years was confidence in the system. School colleagues who emigrated to Canada and America in the early 1960s because they had no other option showed me their bank accounts on their return home four or five years later and they were paying 5.5% or 6% in interest rates when people here were paying 18%, 20% or 21% and I was paying 22.5% in the Christmas of 1980. We know how difficult times were then. I have said on the Order of Business and in other debates in the House that those who stayed here to witness the success of the economy that we have had deserve a gold medal for what we achieved during the past 35 to 40 years.

Many people in Ireland this morning would like to compliment the Government, the Minister for Finance, the Taoiseach and everyone associated with giving a guarantee that the few euro people have on deposit following their life-long savings are assured and that everything related to the current and other accounts held by people in business in Ireland has been guaranteed and looked after.

We now go forward to meet the challenge we face. I must take account of the advice of the father of the House, Senator Ross, on these senior financial issues because he has been dealing with this area all of his working life. However, I must differ with him in that all my friends who have generated thousands of jobs here over the past number of years have told me — having been a Member of this House for a considerable time I am probably more senior in age to most Members here — that in their lifetime this was the first time that they had seen the banks not lending to the banks, which was a road to disaster. I look forward to Senator Ross's contribution to the debate on the economy. I was pleased two weeks ago to place this issue as the first item to be debated on our return today. I will listen to the submissions of colleagues, particularly that of Senator Ross, on how the banks loaning to the banks will improve the position for all of our people.

Senators MacSharry and Ó Murchú called for an all-day debate on banking. I can assure the House I will accede to that request. I will inform the House on the Order of Business on Thursday how I will facilitate the taking place of such a debate next week.

I join Senator O'Toole in welcoming the library initiative detailed in the pamphlet which he highlighted to the House. It is a great step forward.

Senator Hanafin raised the issue of the source of funding for Libertas and asked if there was outside intervention in respect of it. I will pass his views on to the Minister responsible.

Senators McFadden, Doherty and other colleagues requested that the Minister for Education and Science be invited to the House for a debate on school funding allocations and the manner in which financial allocations are prioritised for new school building projects. I have no difficulty in making time available for such a debate.

Senator Quinn drew the attention of the House to a new €5 coin he obtained in France. This change is a move in the right direction.

Senator Ormonde called for a debate on the issue of taxi drivers who are not registered. This is an issue of concern. We must have confidence in the security of travelling by taxi and in taxi drivers having obtained a licence to operate them from the local authorities. I will bring this issue to the attention of the Minister concerned and I have no difficulty in setting aside time for such a debate.

Senator Healy Eames highlighted the difficult position faced by the people in Galway regarding the high content of lead found in the water supply in certain parts of Galway city. I and many colleagues spent three lovely days in the Clayton Hotel in Galway recently. We viewed the great progress that has been made in Galway city. It was an eye-opener. Galway has changed substantially during the past ten to 15 years. The difficulty that is being experienced by the people in that city will be given top priority by the Government.