Paudie Coffey (Fine Gael)

I thank the Leader for allocating additional time to allow me make a contribution. As have previous contributors, I must ask the reason we are in this position. Some reality has hit home, in particular on the Government side of the House, where I detect that the smugness and arrogance of the past few years has begun to dwindle. I refer to most, rather than to all, Members. Members on this side of the House wish to co-operate for the sake of the nation. I have heard that international factors have contributed to the position in which we find ourselves and I agree the credit crunch has reached these shores and is affecting us to a significant extent. However, as has been outlined in this debate, it certainly is not the only reason. Why have the unemployment figures increased by 50% in the past year? As noted by previous speakers, that is related to competitiveness and not simply to international factors. The Minister should consider this.

I have been castigated for making the point in the House that since the birth of the Celtic tiger, the Government has propagated a climate of over-dependence on property. We now are reaping the rewards of that policy and ethos. While continually ignoring the warning signals that were being brought to its attention, the Government was not prepared to listen because of a certain degree of smugness and arrogance as the good times rolled. Anyone who questioned this was labelled as a prophet of doom. It was highly unfair to be dismissed in that manner and the Government has a lesson to learn in this regard. I am no economist and do not claim to be an expert on financial matters. However, I understand the fundamental point in respect of the risk associated with over-exposure. At present, this State is dwindling towards this risk, which is a pity because of the associated victims. I refer to people who were allowed 100% or 110% mortgages and who, 15 years ago, were unable to secure a basic ESB loan to buy a washing machine.

The fundamental question is why the banks were allowed to run riot in this regard. It was scandalous to allow it to happen. Where was the Government in this respect? The answer is simple; its fingers were in the greasy till. It was on the take as it took in the associated revenue from capital gains tax, stamp duty and VAT. However, taxpayers and people holding mortgages have been left to carry the can. Three months ago in this House, I asked the reason the Government could not come to the rescue of Waterford Crystal. Why was it unable to guarantee that company's loans when it now is able to guarantee billions to the banks? As this was an indigenous industry, the same principle applied. However, when it suits the Government does as it wishes, given what took place in the early hours of Monday morning. I am entitled to raise these issues and while the Minister might look at me in astonishment, this is what people are thinking today. I refer to the hard workers who built the economy while the Government was getting carried away.