David Norris (Independent) | Oireachtas source

For non-financial corporations it is 222%, and it goes up to 259% for financial corporations. The overall percentage is 85%. That is terribly dangerous. The approach outlined in the Bill is one way out of it and it will free up money into the system.

One of the most important elements that is proposed is the notion of a sliding scale of loan-to-value ratios. The first type of property is those which require an 80% loan-to-value ratio. This refers to owner-occupied, all-year residences, namely, homes. Also in that category, there is private co-operative housing - the social element; private residential property for letting, including facilities for persons who require care - the decency of the Irish people is reflected there; non-profit rental housing; youth housing; housing for the elderly; and properties for social, cultural and educational purposes. This makes the scheme socially attractive. The next type of property is those which require a loan-to-value ratio of 70%. In that case we are looking at agricultural holdings, forestry property and market gardens. Again, they are immensely socially constructive and also good for the economy. The required loan-to-value ratio then declines to 60% for recreational dwellings, office properties, retail properties, industrial properties and collective energy supply plants. We are again looking at an incentive mechanism for restarting the economy, but we are putting it at a lower level than the socially important items. For the construction industry the required loan-to-value ratio is 40%.

I say well done to Senator Barrett. I congratulate him. He should not withdraw this explanatory memorandum. It is wonderful. It is brilliant and idiosyncratic. I have never seen one like it in my life but it is refreshing because it gives one the answers. It asks the principal question of why Ireland needs the balance-principle banking model. If one wants an answer, it is there. It is not given in the kind of way I have ever seen in an explanatory memorandum before. We need to translate it in case there are any journalists listening who may think that immorality is being proposed. My good colleague, the brilliant academic from Trinity, Senator Barrett, dares to use the classical languages. He uses a phrase from Latin.