Dan Boyle (Green Party)

Senators Hannigan, Norris, Ormonde and Ó Domhnaill raised the issue of the banks, in particular, their effect on small businesses. Today, a spokesperson for one of the two largest banks — a second of such banks — said he does not see an immediate need for recapitalisation in terms of its profitability. We heard such comments before the introduction of the guarantee scheme and we are in a fluid situation. However, that a bank can declare profits of such a level indicates there is some buoyancy in the financial sector. There is a need to use this in a responsible way.

There is no doubt, as Senator Mary White said, that the engine of economic recovery and growth will be small businesses. We know too that in order to restart economic activity here, financial institutions must lend more. The traditional and dangerous way they have lent to date has been to concentrate most of their lending on property. The most effective way they can lend is to lend to small and start-up businesses and regenerate economic activity that way. The role of the Government in encouraging that is partly through the guarantee scheme and partly through the appointment of two people to the board of each financial institution, through the legislation that has been passed in the Houses. I am confident those measures will be taken and that the criticisms that are being voiced by all the political parties here, which are shared by the public in general, will be acted upon.

Senators Hannigan and Bacik mentioned the EPA report on water quality. The Government is all too aware of the situation with regard to water quality. This is one of the few areas in the budget of the Department of the Environment, Heritage and Local Government that received a significant increase in a climate of budget reductions. The budget for water services increased by 19% in this year's Estimates. This is a serious statement of intent and acknowledgment that there are difficulties and that we have a significant amount of catch-up to do so that we have public confidence in our drinking water and our water system. I am confident the additional resources will be put to good use.

Senator Regan raised the question of the Human Rights Commission and the Equality Authority. I understand — we must wait to see how effective this is — that most of the savings are as a result of a shared secretariat between the two. I share the concerns of many that having a shared secretariat in two different locations will be difficult to implement. If the rest of the decentralisation programme has been put in cold storage, this area should be also examined.