Joe O'Toole (Independent)

I am also disappointed that we are not addressing certain issues. Three weeks ago, the Leader gave me a commitment that he would arrange a debate on education. He said it would be done without a problem. It has not happened, however. During the same week, he assured us that the House would discuss the economy at least once a month. Such debates are not taking place. The discussions in question are crucial. I could name a few more issues that need to be considered. The Leader and I have spoken privately about the current difficulties in the economy. An opportunity needs to be provided for us to put our opinions on the record.

We need to reach an understanding of where are going with regard to the banks. Senators stayed here all night to support the Government's initial response to the crisis. The House is surely entitled to discuss the effectiveness of this country's approach, and the next step that will be taken, with a member of the Government. We need to understand some issues which are not in the public domain. I am not sure that capitalisation is the answer. At the beginning of this period, the Financial Regulator said that the Irish banks were capitalised to the same extent as the rest of Europe, or more so. That has proven to be the case. Governments throughout Europe have decided to increase the level of capitalisation from 6% or 7% to 8% or 9%. Billions of euro will be needed to do that. The banks decided not to pay out dividends — to hold back money — for that reason.

I would like to get some answers on this issue. I may be wrong about it. We do not have enough information to make a call on it. I do not want to recapitalise the banks if they intend to hold those moneys in store to sort out their own problems, before carrying on as they were before. I would like two things to happen. We should require this country's banks to use the money they can draw down from the European Central Bank to fund properly risk-assessed small businesses and other entrepreneurial initiatives within the State. The banks are choking development, in effect. They are choking business at a time when money is available at EU level to be drawn down. I do not think that is good enough.

I am afraid that the recapitalisation of the banks would amount to no more than putting money into a safe in the ground, regardless of the level of equity we might get in response. It would never come out of that safe. I do not think that is how we should proceed. If money is made available to the banks from the Irish Government, rather than from Europe, for the specific purpose of oiling the economy, we should require the banks to engage in responsible and properly authorised lending. That is what needs to be done. I would like a debate on the matter to take place in the House.

Many people in this country who have safe jobs and secure incomes are not spending their money. That is happening because Fianna Fáil is talking down the economy, which is what it accused my colleagues on this side of the House of doing over the past two years. People are afraid to spend a shilling. The Government needs to get its act together by encouraging people to spend money if they have it. Two things are happening at the same time. First, more and more people are becoming unemployed, as Senator Buttimer said last week. Second, people who are in safe employment and have assured incomes, such as the Members of the Oireachtas, are not spending money. We need to ensure that people do not walk away from doing the things they would have done previously.