Larry Butler (Fianna Fail)

Before we see the bottom the banks will have to come clean on their loan books and write down what is necessary for the markets to kick back into place again. That is the second stage of this process. This is what the Minister has done, and he has given himself leeway.

We need strong financial packages for small businesses, export businesses and industries that keep our employment and economy going. We have a foot in the door, and that will be an important part for us to play. We, in this House, must bear in mind that we have a responsibility to the ordinary taxpayer, but we also have a responsibility to ensure our banking system is solid and that we will deliver that, through our intervention.

It is also important to note additional resources are required for scrutiny in the banking system. If extra people need to be employed to scrutinise what is happening in the banks, the banks are the people who should pay for it. We must ensure that. Section 22, which contains the right to review the scheme and change the model every six months if necessary, is vitally important as it allows leeway within the scheme due to current and changing global climates within the global situation. The Bill also provides that each institution covered shall provide the regulatory authority on behalf of the Minister with a compliance certificate. The acquisition of a certificate to back up the system, and that we know about it on a regular basis, is key to the scheme.

The action that has been taken has improved liquidity in the system and it is no longer a problem. The main issue now is re-capitalisation of the banks. We must take steps to restructure their executive management and responsibilities and strengthen the management capacity of corporate governance. That is key. We must ensure the people who take the decision to grant loans in precarious circumstances are not allowed to do so in the future. We must be clear on that; to protect the taxpayer we must have solid investments. If one has good, solid investments, they will show a return. One can look at any of the main stocks today; the more precarious stocks are falling, but those such as CRH are still in a healthy situation. Good investment is essential.

The regulatory system is being reformed and that is welcome. Improved valuation standards will be another key element of this legislation.

I commend this package of measures to the House. The Minister and his staff have been working tirelessly on it and I congratulate them. We also have an opportunity in view of the situation in global and European markets. We are not totally alone in this situation. It will be very important over the next number of months to have a close working relationship with Europe regarding the banking system.