Donie Cassidy (Fianna Fail)

Senators Fitzgerald, O'Toole, Alex White, O'Reilly, Norris, Coghlan, Buttimer, Doherty, Hanafin, Walsh, Healy Eames and Quinn gave the House the benefit of their experience, made proposals and expressed opinions on the banking challenge facing the country, Government policy and our low tax regime. Interest rates are at an unprecedentedly low level. Anyone who read page six of the Irish Independent on Saturday will have noted that Bank of Ireland and Allied Irish Banks are offering a rate of less than 3% to first-time house buyers. As someone who had bridging finance in 1980, I have seen both sides of the coin. Those with a secure job who have confidence in the market have an opportunity to buy their home because they will not get better value for money.

Recapitalisation of the banks is necessary. Many of us will have seen President Obama make his first address to the American nation. Yesterday, he visited small towns where unemployment has increased from 4.6% to 15.3% in 12 months. Some countries may be in a better position than Ireland but many others are worse off than we are. Members of both Houses will have to channel their energies, expertise and focus into job creation. This can only be done by looking after the small and medium-sized businesses which kept the country going in the 1970s and 1980s. During those difficult periods, we looked after these enterprises through the Government bank, the ICC. The ACC, as it was then, helped the farming sector in the 1970s when agriculture experienced major difficulties.

Anglo Irish Bank is now a State bank. Let us look after the innovators and creators who are creating wealth and jobs. We must seriously consider creating competition in the marketplace if certain banks refuse to play their part, especially those which did not accept the State guarantee. Senator Hanafin cited a number of examples. The Government and Legislature are duty bound to look after Anglo Irish Bank, a State bank which can provide credit and replace the ICC.

Senators have expressed diverse views on this issue. We must take steps to give hope and confidence. Ireland has some of the most able and creative people in the world and the economy is one of the most successful in the world. For the past 12 to 18 months, credit, the lifeblood of commerce and business, has not been available. It must be made available.

A number of Senators present in the Chamber have played a leading role in society over the years by giving exemplary service to the nation. In my humble opinion we must give serious consideration to creating competition for the banks. Senator O'Toole was a leading figure in the social partnership process, of which we are still part. As he correctly noted, in his experience shareholders come first. In that case, the only institution which will look after small family businesses and medium-sized enterprises which employ people throughout the country is a State owned bank. The Government will have to take a lead in this regard. Our only obligation is to look after the bank we own. Perhaps the Minister will outline whether this proposal is a runner. We should consider this approach.

Many Senators noted that energy costs are too high. I watched the programme "One to One" on RTE last night. I am an admirer of much of the work done by the ESB which has performed an exemplary role during the years in providing a service all day, every day throughout the year. The chief executive officer of the company, Mr. Padraig McManus, gave a magnificent interview last night on his vision for the ESB in the coming years. Under Mr. McManus and his predecessors, the ESB has been a success story both here and abroad.

Be that as it may, as Senators pointed out, we are in a time of crisis and energy costs are of the essence. It is unacceptable that energy charges to industry have increased by 25% in the past three or four months. The position is unsustainable and must be addressed by the Government or Commission for Energy Regulation. All sides of the House call for action to be taken immediately to keep the economy competitive. Energy costs for some private dwellings have increased by 50%. Senior citizens who need heat and electricity have been particularly affected and must be supported during the downturn. Senators must raise the issue of energy costs when the Minister comes to the House. At the start of the term, I stated the House would prioritise the issue of energy until a satisfactory outcome is secured from Bord Gáis and the ESB.

Senator O'Toole may not realise that top earners pay a levy of 3%, not 1% as he indicated.