Ivor Callely (Fianna Fail)

There are dangers of protectionism and nationalism. I would have concerns in this regard. I believe the future effects of the crisis and the final position remain to be seen. Both sides of the Atlantic have introduced sweeping reform packages, intended to stabilise only their economies. Companies that have been given bailouts are likely to be more open to do business since they have greater resources thereby putting others at a disadvantage. Government influence in business decision making will grow since governments are buying up large parts of the private sector. Solutions to the current crisis should involve the following: job creation; providing unemployment benefits where needed; developing alternative industries that will spur growth and diversity, which we are doing in Ireland; and infrastructure spending which will positively impact on countries as it will address critical projects and create jobs. It is especially clear that greater oversight and regulation are necessary. A combination of financial regulatory tools is likely to continue to form the solution.

I am pleased to see some of the steps being taken regarding the banking sector. I again take the opportunity to put on the record that we have a banking sector in serious difficulty. A code of practice was introduced following the injection of the stimulus package for the banks. The code of practice on mortgage arrears is in place and organisations such as MABS are assisting. On the other hand there are serious problems with the levels of support for and credit available to small and medium enterprises. The code of practice is not being applied. Banks have failed small and medium enterprises. There is no authority such as MABS for them and support is only available to those businesses affiliated to ISME. The UK is establishing a new agency. I am sure others will share my view that the Minister should consider introducing an agency to complement MABS to solely look after small and medium enterprises, ensuring that the code of practice and the other issues the Minister worked out on the day regarding the availability of additional credit facilities, etc., are being implemented.

While I welcome some of the work being done on pay - we know what is happening in the public and private sectors - only one banker's salary was really exposed, which was that of the chief executive of Bank of Ireland. For the credit manager who has authorisation to lend more than €1 million, I wonder has his or her salary been impacted in any way.