John Gerard Hanafin (Fianna Fail)

We heard this week about a run of people taking food from the shops and worrying whether there was enough currency to meet import bills. This was not in Zimbabwe but in Iceland, a developed economy like our own. People in that country have a very high standard of living in one of the countries of the First World, a major OECD member and a first member of many organisations and groups set up to develop world economies. This country, however, has been affected by the crisis in the financial markets. If a country such as Iceland, or our jobs here, or those around the world, can be affected by people who make decisions, surely those decisions must be regulated.

Now that we have a global financial market, regulations must be introduced and we should have a say in how the global markets are run. Where did the simple principle go whereby a bank borrowed on the basis of the amount of deposits it had? From where did all the off-balance sheet borrowing come? It is not prudent lending and we must get back to the original principle. The practice has put at risk western economies and those throughout the world, including fragile ones. One would never have thought of Iceland as a fragile economy.

I ask the Leader to pass on our commendation to the Minister for Finance, Deputy Lenihan. His budget was one that many of us will be quick to claim in difficult times. The 8.4% increase in social welfare spending at a time when there is a shortfall of billions is a credit to this Government.