John Gerard Hanafin (Fianna Fail)

I thank the Minister of State, who is a top attender from the Executive in this House on financial Bills and Adjournment debates. This miscellaneous provisions Bill covers a number of areas, including direct debit mandates following the Single Euro Payments Area direct debit scheme. It also includes provisions to transfer the assets of certain pension funds, including UCD, Trinity College Dublin and the Institute of Public Administration, to the National Pension Reserve Fund. The Bill includes a provision to allow the Minister to extend the period in which financial support can be provided under the Credit Institutions (Financial Support) Act. There are also a number of amendments to legislation.

The part of the Bill that has created some queries concerns the Credit Institutions (Financial Support) Act. The Minister signalled that this would be extended on 11 February and during debate on the supplementary budget on 7 April. Even though the Opposition parties derided the Government for its guarantee, questioned every aspect of it and some parties voted against it, it was copied and emulated in many European states. We are obliged to extend the guarantee so that our banks will not be at a disadvantage compared to other European banks. In other financial areas, some Opposition parties consider a crisis a time of opportunity. The Labour Party voted against the withdrawal of medical cards for millionaires, voted against keeping the institutions' depositors safe and voted against the nationalisation of banks. It makes one wonder what socialism is all about in 2009.

As the necessity to access long-term funding was inherent in the capability of the bank guarantee, it has become necessary to extend the time limit. Having done so, the Government has discharged its duty so that our banks will not be at a competitive disadvantage vis-À-vis other European countries. We have had a positive endorsement by the IMF of the steps taken thus far in respect of the banking sector. Every time an Opposition spokesperson comments on the banking sector the starting and finishing points are ground zero, the worst day of the crisis.

As Senator Butler said, there are positive signs about NAMA. One point endorsed by the IMF is that we now realise 30% of the assets are held abroad. We are conscious that the Irish economy may not start growing again until 2011. Up to 30% of assets are held in countries, including the US and the UK, where we can reasonably expect that the assets will show true value, as happened in other states that had similar crises such as Sweden and Indonesia. In such cases, the banking crisis was properly managed and the assets were taken over by those states at the correct rate. There have been damaging Opposition calls that this was done at the behest of Fianna Fáil developers. Where a bank has deposits of over €59 billion, such as Anglo Irish Bank, it is systemic to the economy. One cannot let it go under. It would be tantamount to saying we are no longer open for business. We could forget foreign direct investment and a "for sale" sign might as well go up at ports and airports. It would mean the Irish Government did not attempt to ensure the stability of its banking sector. Not only have we attempted to do so, we have ensured it and we have nationalised Anglo Irish Bank.

This Government prepared the State well during the good times. We had low national debt, the lowest tax wedge in Europe and the NTMA had billions of euro on deposit. Some ask us if we are joking and put it more crudely at times. In the House yesterday, an average comment was referred to as a Mad Hatter's comment. There is no point in being abusive in the House. I refer that to the Opposition Member concerned. It is unacceptable. We have made provision for the future. In 2002 and 2007 Opposition manifestos were in excess of the Government in an attempt to spend more money and tax less. How it can turn around with 20:20 vision and tell us that the Government should have known better when the Opposition did not is beyond me.