Paddy Burke (Fine Gael)

I would like to be associated with the vote of sympathy to the family of the late Robert McCallion, who was killed tragically in Donegal. I extend sympathy to his family and the Garda Síochána.

How are loans to be assessed for young people or anybody looking to buy a property from now? With all the levies and restrictions put in place, along with removal of interest relief, there will be a dramatic effect on property. Such action will drive property prices even lower than what they are currently. It augurs poorly for people in the property market and builders because no property will be sold and they will not be able to get loans unless the property market bottoms out completely.

This leads to the issue raised by Senator Hanafin regarding the national asset management agency. The Senator indicated €100 billion of assets would be bought at the right price. There is only one way to know the right price, which is through the open market. We will never know the sum in question unless it is on the open market. Some of these assets should be put on the open market and people should be allowed buy them if they can. Otherwise we will never know the right price.

Who will take the hit? Will the banks take the hit if assets were previously valued at €100 billion but are written down to €60 billion? Who will pay the other €40 billion? We have given the banks €7 billion as it is and we will probably have to give them more to make up for this action.

Senator Coffey is absolutely correct in that there is no hope for retail, restaurants or bars. This Government has given no hope to the people either. It is bad enough with the budget we had yesterday but they are telling us there will be much more pain next year, with even more the following year. To add to that, €2 billion has been taken next year from the capital budget, with even more being taken from the capital budget for the following year. The pain will be even worse down the line so instead of giving hope to people, the Government is doing the opposite, which is very sad.