John Gerard Hanafin (Fianna Fail)

I support the motion, which is extremely positive and which, in light of the position in which we find ourselves, is surprisingly appropriate. The motion states:

That Seanad Éireann supports the development of microfinance in this country with greater support of the credit union sector to allow for the creation of local economic initiatives, an important and necessary step towards bringing about national economic recovery.

The amendment tabled by Senator O'Toole relates to regulation in banking and would be more appropriate to the debate on a different motion.

I am conscious of the fact that on occasion it takes time for people to recognise a good idea. The motion is not nebulous in nature; it is positive and extremely realistic. Proposals that would diminish its impact are unacceptable. Suggestions from the Opposition to the effect that because the Government has refinanced them, the banks should break legal contracts into which they have entered are nonsensical. The banks operate on the basis of fixed rates. Once a person enters into a fixed rate arrangement, a bank can then deal with this by either offsetting the money by paying a lower rate in respect of a long-term investment or by using existing funding. In other words, it is a fundamental aspect of banking business that once one becomes locked into a fixed rate, a degree of certainty is afforded to the bank and it can then make a counter-arrangement to balance that fixed rate. We could not request the bank to do that. It would have been wrong and would have broken a legal contract.

With regard to local developments, 250 years ago a gentleman at the Rock of Cashel in Tipperary developed a type of stout in his back garden. That stout is Guinness. We have also seen how the small co-operatives which started——