Larry Butler (Independent)

I welcome the Minister and thank him for what he has done in recent years in his finance portfolio. I do not know of anybody who, on coming into office, has had to deal with so many things at the one time. He did us proud internationally and at home. It is important we say that and that we restore confidence in the banking sector. This Bill gives us confidence in that regard.

It is important the public and those who bank with our banks have confidence in their investments and that they are protected. The Central Bank has a major role to play in that regard. Light touch regulation did not help us but we must acknowledge that it was accepted internationally. Many of our problems were due to the availability of cheap money internationally. The markets have tried to wean the European banks off this cheap money and allow them to provide money for themselves. That has not suited the markets too well either and we saw what happened.

The Minister has restored confidence in the banking sector. It is important to consider how we will ensure our economy benefits from what he has done. Our budgetary situation has improved fantastically. Other countries, such as the UK, are only now beginning to do what we did two and a half years ago. That is due to the Minister's oversight of the economy and ensuring we spent only what we could afford to spend.

The Minister must find an additional €3 billion this year, which will be quite difficult. However, he has the courage to ensure we take the steps necessary and that we do not find ourselves in the position in which Portugal, Greece and other countries found themselves.

The Minister Enterprise, Trade and Innovation said during the week that we should prioritise a guarantee scheme. The guarantee scheme would underpin the €3 billion provided in respect of NAMA and 160,000 jobs. It is important that our banks release money into the system in order to maintain jobs.

The legislation will ensure we do not go back to the old ways of doing things. While the old ways worked for a while, we all know that the provision of 100% of the value of a property could not last. I understand banking to a certain extent but if one gives 100% of anything, the value is gone immediately. That was not a system we should have condoned in the first place. We did and it was light touch regulation. We are addressing the issue in this legislation.

It is important that credit unions are regulated. However, there are those who say they should not. We thought the same about the banks. The Minister is correct. We need to bring credit unions within the terms of this legislation. The Minister has suggested how this might be done. We all know that some of the investments made by credit unions were not the best and a number of court cases have been taken. In some cases, when credit unions bought products which were found to be unsuitable, they pleaded that they had not understood them. The purpose of regulation is to ensure organisations such as credit unions do understand investments, that those who are saving money with them and borrowing money from them are protected and that such organisations are properly run. The Bill will deal with that issue.

I welcome the interim report of the mortgage arrears and personal debt review group. Some argue in favour of the introduction of a property tax. The people cannot afford a property tax. They are struggling to pay their mortgages. The imposition of a property tax would be a mad idea and an outrageous proposal when we are trying to revive those who are struggling. Furthermore, those who invested in property for pension purposes now find they cannot afford to pay the mortgage on their investment property. In that situation a property tax would drive them through the floor. It would not be feasible and is not the way to go at this time. Perhaps when we are a little better off and the property market has recovered, we might look at the introduction of a reasonable property tax. Someone who pays stamp duty on the purchase of a house and then pays taxes should not be made to pay a property tax.

I thank the Minister for bringing the Bill before the House. I welcome the new approach taken by him.