Sean Barrett (Independent) | Oireachtas source

I thank Senator Michael D'Arcy. Would the Irish psyche adjust to this? I would like to see the two systems going side by side. I gather the telephone has hardly stopped ringing since we printed the Bill. I understand there was an IDA proposal for a centre of this type of finance in the IFSC at one stage. Perhaps they could operate side by side. Would I like to see Irish banks running these operations? No, I would not like to see Irish banks running anything. Some ¤64 billion taken out of a country this size of a evening is enough damage done to this country as far as I am concerned. Perhaps they would actually become real banks if we had this measure. It might address their overwhelming reliance on mortgages at inflated prices and that reliance might be replaced by their getting to know some small and medium-sized enterprises. It might encourage them to do some other investment.

Would we have the associated problems that arose in the USA here? This question was raised by Senator Gilroy and other friends and colleagues. I am informed that it is plain vanilla that it will not be combined with anything else.

That would be something on which I would like assurance as well. I would not like to see that situation developed.

The IMF likes it, it is Basel II compliant and the EU likes it. In fact, when I spoke briefly with the Minister, Deputy Noonan, I got the impression he will be taking more interest in his Danish colleague the next time they get together. He is intrigued by what we could learn from that, which is extremely good to hear.

Pension funds would like it. This is triple A star and we need that kind of investment. It could be good for local authorities. As one can see in one of the sections, they could get involved in schemes with it as well.

I hope I have dealt with the problems that Senators raised. The Minister is taking a look at it but I will address some of the points in the Minister's speech. I welcome the fact that he will look at this. That is extremely good news.

The Minister stated: "There are many positives to the system [obviously, I agree] but it must be remembered that the introduction of such a system in this country would necessitate a total shift in mortgage banking policy and regulation." We are in a European Union with the Danes and it might not be so. I gather one other Minister, whom I better not name due to the rules of the House, was interested in this previously as well and the IDA was interested in it. It may not be that revolutionary.

He also stated "The Government could not countenance a system which forced families out of their homes ...". I am informed that in Denmark the number is minuscule, a fraction of 0.1%. These are much lower priced loans than anything that is in operation in the Irish system and that has not been a problem. I am glad to deal with that in response.

The Minister stated that it would not be appropriate to introduce new lending and banking practices in advance of the conclusion of negotiations on this regulation and directive in the European Union. I am certain what we suggest is EU compliant and it is not new - it has been there since 1756 or whatever Senator Quinn told us.

The Minister stated, "It is not clear that there would be sufficient interest in the purchase of Irish mortgage bonds at this time." If the Danes could come here in 1014, they can come back with their mortgage proposals and we will see what gives. In fact, we will invite them back for The Gathering next year, with their mortgage advisers and mortgage companies.

I thank Senator Hayden and all of the Senators. Senator Norris used the word "idiosyncratic" about me. I think I could return the compliment - he always is. Senator Hayden's views are always most interesting. She referred to the collapse of local authorities in the Irish housing market. This could reflate that, and co-operatives are a part of the Danish system.

That brings out the point of why I will be asking to adjourn this debate because there are so many issues. This has just been the start. This is, as I have said, a wonderful Seanad where ideas are discussed. The Seanad did not stand idly by in this crisis. Banks stood idly by and did serious damage and certain officials, who have been mentioned, were not the most active either, but it cannot be said in terms of what we have done on fiscal responsibility and today, that the Seanad ever neglected its duties, and it will assist the Minister and his colleagues in Cabinet in the work of reform. I hope that there will be many contacts between the Minister of State, Deputy Ring, as the tourism Minister of State, and many Danish people, and I hope they will bring their mortgage advisers along as well.

I propose that we adjourn at this stage, if that is acceptable to the House.