John Gerard Hanafin (Fianna Fail)

I ask the Leader to arrange a debate on the retail sector as part of the ongoing debate on the budget. Those commentators who are talking down the economy are doing it harm. The sooner we receive a direction on budgetary strategy, the better for the retail sector which is a major employer in the economy. As part of that process I suggest we examine DIRT on savings which should be payable at the top marginal rate. Anyone dependent on a fixed income would be able to claim back, but the purpose would be similar to that in Japan where a zero interest rate is offered to provide an incentive in this regard. We have a problem here, about which we hear consistently, that too much is being saved. If that is the case, we must incentivise people and the best way to do so would be to increase DIRT on savings which should be payable at the top marginal rate.

I support my colleagues who spoke about Standard & Poor's which has finally cottoned on to the fact that this is the third most open economy in the world. If the world economy was to pick up by even 1% or 2%, we in this country would benefit significantly in terms of increased employment and exports. Standard & Poor's has seen the light, but, unfortunately, there was a comment made during the week by Fitch which was unacceptable, that the Irish banks were not putting a sufficient number out of their homes. That would be bad business and I spent a long time working in that business. It would be uneconomic in terms of auctioneering and security costs and legal fees, not to mention the hardship it would impose in terms of the medical costs people run up in such a crisis. It would be bad business to put people out of their homes and for rating agencies to tell us that they want to see more pain being endured is unacceptable. I agree with my Opposition colleague, Senator Norris, who came down strongly against the rating agencies which got it totally wrong when sub-prime lending was rated as triple A when it was nothing more than junk.