Martin Mansergh (Tipperary South, Fianna Fail)

The Houses of the Oireachtas have many opportunities to make inputs of ideas, and this has been one. They can also constitutionally accept or reject outcomes of programmes, plans and negotiations. Inevitably, negotiations which involve the size of a pay bill must take in those who receive or earn incomes and those who pay them. It is not realistic to believe negotiations — I have been involved in some in my time — can be done in public with partial ideas. In a negotiation, nothing is agreed until everything is. The problem with a partial approach is that the picture is distorted.

The urgency of reaching a conclusion at an early stage is well accepted but the opportunity of getting it right with wide public support should not be missed, if possible. Any agreed document will be published when there is agreement but at the end of the day the Government is democratically elected and must make decisions for which it can be held accountable through the Oireachtas. These decisions can be debated.

With regard to the banks issue, which is important, discussions are ongoing with AIB and Bank of Ireland on recapitalisation. The recapitalisation announced in December included a credit package under which the banks committed to, among other things, providing an additional 10% capacity for lending to small to medium enterprise in 2009, an additional 30% capacity for lending to first-time buyers in 2009, assisting householders in arrears on their mortgages and introducing a €100 million fund to support environmentally friendly investments with a view to reducing energy usage and facilitating a switch to renewable energies.

The immediate impact of the Act to nationalise Anglo Irish Bank which was signed into law on Wednesday last is to provide certainty for all of the bank's depositors and other customers across all of its operations in Ireland and internationally that it is secure and stable and will continue to conduct its business on normal terms. One cannot overemphasise the need for a healthy and sustainable banking system which is vital for the functioning of society and will be a central plank of recovery.

The Minister met the chairman of the Commission on Taxation last week and asked him to complete his report as soon as possible. However, the complexity of the issues involved must be borne in mind. In addition, decisions on changes in taxation will be made in the next budget which will not be introduced before the autumn.

Reference was made to the payment of bills by public sector bodies. Under legislation, all commercial transactions undertaken by State bodies are required to be paid within a specified period — usually 30 days — subject to contractual arrangements.