Paschal Donohoe (Fine Gael)

One of the most frightening things in the discussions about the current economic difficulties has been the elevation of economists to the role of high priests. They are playing a prominent role in the discussion of what is happening to our economy and what needs to be done about it. That has led us to miss an important point, namely, that there must be a political as well as an economic response to the current crisis. I am struck by how the events of this week are undermining the ability of the Government to deliver the type of political response that is required. Yesterday, some 2,000 people queued a short distance from this Chamber to apply for 150 jobs. This is happening in the same week that demoted Ministers of State are given a payment of €50,000. It is happening at the same time that the issue of increments to politicians and pensions to Ministers has been handled in a way that will do terrible damage not only to the Government, which I care less and less about, but to the entire political system. People look to us to provide leadership. However, the actions being taken by the Government on a daily basis are chipping away at public confidence in our ability to do so.

There are three specific actions the Government must take. First, I agree with Senator Alex White that when there are genuine differences between political parties, they should be discussed. This is why Senator Fitzgerald's amendment is so important. My party has a different view on how the banking system should be handled. Let us thrash out these issues in the Chamber. We must examine the core issue of nationalisation of the banks. I cannot see how the national assets management agency can work without at least the partial nationalisation of the two largest banks. Twenty of the leading economists in the State are of the same view. Why can we not debate this issue in the House?

Second, where there are offers of co-operation across the political divide, let us accept those offers. My party has indicated its willingness to support an all-party Oireachtas committee on banking regulation. There is no better time to undertake that work. Third, we must have more aggression and pride in defending our country when it is under attack. Last week, an article in Newsweek described the Nobel prize-winning economist, Mr. Paul Krugman, as one of the prominent figures in American economic and political life. Last Monday, Mr. Krugman launched a very strong criticism of our economy. Where is the response to this? Why have the Government, the ambassador and the Minister for Finance not defended our State and put forth the facts about the current situation?

I conclude on a positive note by congratulating our colleague, Senator Norris, on the award he received last night from the Lord Mayor of Dublin. As a former member of Dublin City Council, I was fortunate enough to be involved in some of those events and decisions in the past. To be recognised in this way is a rare honour and a great achievement. It is wonderful that the council took the opportunity to recognise Senator Norris for the great contribution he has made to our city.