Feargal Quinn (Independent)

I welcome the Minister of State, Deputy Mansergh. We are getting fond of him now that he is in the House so often. I do not propose to talk about the past. Instead, I prefer to query how we propose to resolve the current difficulties. The Government amendment does not provide the solution because it lacks urgency and fails to recognise the magnitude of the problem.

Our reputation has been greatly damaged internationally, especially from the perspective of financial investors. Despite this, insufficient action is being taken to address this issue. Members of the boards of all the banks, including the Central Bank, must be replaced. So too must there be an overhaul of the Financial Regulator which failed to guard adequately against these abuses. Such action is desperately needed to repair Ireland's reputation. How can we trust those who led us into this mess to lead us into recovery? Whistle-blowers are needed more than ever. Mr. Tony Spollen, who exposed the DIRT scandal at AIB ten years ago, was a good example of the type of white knight so urgently needed now. There are people within the banks who are aware of malpractice. They must come forward without delay.

I recently read an interesting OECD report on the causes of the current financial crisis and its effect on policy issues. It is not surprising the report is highly critical of many of the banking practices that were prevalent before the current global crisis. Its recommendations include a reform of the incentive system for employees in financial institutions through a focus on the slow vesting of shares in employees rather than rewards for quick returns. The report also recommends matching the cost of capital to the risk being taken in its use. In other words, risk-taking sections of banks should be separated from the rest and should pay more internally for their funds. These are the types of financial reforms that should be implemented as a matter of priority so that we can rebuild the banking system as a properly functioning entity which serves the consumer rather than the risk-taking, high-earning cowboys who play with other people's money.

Before people regain their confidence in the banking system, there must be some type of admission of guilt. In the United Kingdom, for instance, unreserved and public apologies were given by HBOS and Royal Bank of Scotland to their customers. A similar apology on the part of Irish banks would be a good start.

I have not focused on the past but have instead looked to the future. There are certain actions that can and must be taken. I urge the Government to grasp the opportunity immediately to resolve this crisis. It is a crisis that is solvable.