Joe O'Toole (Independent)

Senator Fitzgerald raises a crucial issue. As I stated last week, the Taoiseach travelled around Europe talking about negotiating a deal which had not been discussed in this House or the Other House. That is unacceptable, bad politics and a stupid strategy, as is the fact that banking representatives appeared before the Joint Committee on Finance and the Public Service this morning without prior discussion of the issue in either House. Questions are being raised about this matter, including, from a Government point of view, by Senator Boyle. This creates a difficulty. If others on the outside — shady influences — are having a bearing on Government decisions, we deserve to know the reason. If the Government wants a consensus approach to be taken to issues such as Europe and the economic crisis, this is not the way to go about it.

I repeat a question asked many times. How will recapitalisation of the banks help the economy? I do not want to be told that greater confidence in the banks helps the economy. While it helps bank share prices and is good for bank directors and shareholders, it does not necessarily benefit businesses and those who depend on them. I want to know what is the direct link between bank recapitalisation and the economy.

If the Government puts €5 billion of public money at risk in supporting the banks, what will it receive in return? While it is good the Government has decided to appoint directors to bank boards, what action is it taking on banking management and policy? Until now, bankers received bonuses and advances on the basis of the amount of business they had written and the amount appropriate for securitisation. I presume the position is changing and risk assessment and other benchmarks will be considered when determining what is successful banking. We need to hear about these matters to learn what changes will be made.

We hear a great deal about €5 billion here or there but in the real world people cannot come to grips with the idea that we can set aside €5 billion to support the banks when we cannot support schools, we are cutting back on accident and emergency services, houses are being repossessed from those who cannot afford to pay their mortgages and companies could, with additional investment, create more jobs. I am not saying whether these things are good or bad. I am saying that is what ordinary people are talking about. We need to make the connection. It is not good enough for us to be seen to be listening to the banks and calling them in, and the banks calling the Taoiseach aside and asking for things, while the rest of the world is going over the edge, as it were. There is something unacceptable about it and it needs to be explained.

We need to ensure there is a solid banking system. The question I ask should not lead to the conclusion that we should not be doing our best to sort out the banking system. Recapitalisation does not necessarily do what is wanted. Ordinary people need a precise explanation on how it will help them in the long term in their world, whether in education, health or business. This is not happening and if we do not have a debate on it, it will not happen. I second the motion on that basis and ask the Leader to think seriously about conceding the point.