Paul Coghlan (Fine Gael)

I welcome the Minister of State to the House and I thank him for his brief outline. It is unfortunate that the relevant document is, as Senator Alex White stated " in circulation among other people down town", particularly the social partners. As I stated on the Order of Business, we are supportive of the social partnership process and we would like progress to be made but this is one of two Houses of Parliament and, as Senator Ross said, it is strange that in our democracy we are being denied the document, which might list options and lead to a more structured and better informed debate. All of us want the country to succeed and we are playing for the same team — Ireland. We all have a vested interest in its success. Everybody on this side of the House is as patriotic about their intentions to succeed as any Government Member.

As the Minister of State said, we are in difficulty on all fronts — budgetary, banking and economic. I also acknowledge that a negative impact is being felt worldwide. The Minister of State referred to the difficulty we are facing with competitiveness issues, particularly exports to sterling areas. We must struggle with this until it comes right. Why not consult everyone in order that they are on the same team working for this great country, which we want to succeed?

We have experienced a significantly sharp contraction in the housing market. Construction was important to our economy in the recent past and it helped to create the so-called Celtic tiger. However, house prices have reduced by between 20% and 35% depending on the part of the country in which one lives. Significant tax revenue is tied up in unsold houses. The average price of a house is approximately €250,000, 40% of which could be realised in tax if it was sold. There are small signs of momentum in house sales as a result of low interest rates. Why scare people from investing by imposing an additional tax of €400 per house? A tax of €200 was imposed on second homes in the budget and the energy rating certificate requirement for new houses is a stealth tax of between €300 and €600 depending on who carries out the survey. Landlords were caught by the income levy imposed in the budget while management companies running apartment blocks charge up to €2,000 per annum. The Government should not kill off the prospect of the housing market getting off the ground again. That is very important. We all know small builders and hard working tradesmen, as opposed to massive speculators, who have between three and six houses they cannot sell. Their future and those of the few employees they have retained is uncertain. It is difficult for them on a daily basis and I would do anything to enable them to sell their houses because that would be good for the economy as well as them. I would hate to see us go down the road of additional property taxation.

This is why all the options must be discussed. As Senator O'Toole said, we have had solidity from Deputies Bruton and Burton but more openness and consultation are needed. I agree with Senator Boyle's proposal for a dedicated all-party committee. That could be very beneficial because these are nervous times for our economy, particularly the banking sector, and we are trying to eke our way out of them. Fine Gael accepted the principle underpinning the nationalisation of Anglo Irish Bank but we were upset about the way the debate was guillotined in both Houses because we were denied the opportunity to give matters we wished to air the detailed consideration they needed. However, we have moved on and that measure has been taken.

I refer to the recapitalisation of AIB and Bank of Ireland. These banks have significant networks throughout the State and our economy cannot work without them. Their recapitalisation is vital. We cannot afford delay, which is the enemy of progress. The delay will adversely impact on investor confidence. There have been small but encouraging signs in the movement of the prices of both, particularly today. The talks with the two banks should be progressed urgently and brought to fruition. The longer they drag on the longer we will have an absence of confidence. Confidence is the intangible that is so important. Without it we are going nowhere. The acceptance in the investment community and the wider economy that the recapitalisation of the banks has been a success will be vital in getting off the ground.

There is responsible opposition on all these matters. There has been great waste in State and semi-Stage agencies. I had wanted to deal with——