Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I thank all Senators for their contributions. It would be unfair to suggest the contributions, from all sides, have not been useful. In the discussion we have had on the sections they have been useful, specifically on these two amendments. Senator John Gilroy spoke about this. Equally, it is fair to say the Bill has been in gestation for some time and has been amended and changed significantly to take on board the issues the Opposition has raised. This is certainly not the Bill we started out with; it is, effectively, a completely new one and has been greatly strengthened as a result.

Much of our discussion has been about what happened in the past. There comes a time, however, when we have to talk about what is happening now and the future and where we see the economy growing. It is absolutely the case that there can only be a successful economy where there is a competitive banking model underpinning it. I always refer to the point that when we first came into office, had I been told at the end of December of that year we would own only 15% of Bank of Ireland, I would have asked for the chaps in the white coats to take me away because that would not have been possible. However, it did happen, which was an extraordinary boost of confidence in the new Government's ability to sell a substantial amount of Bank of Ireland to get it away into the private sector. We have seen the benefits that can accrue. I have no doubt that the reason sentiment in the country has changed is there is a view abroad that finally we have got our act together in banking, not only in terms of the new regulatory system to be established under the Bill but also in terms of the decisions we have taken on the pillar banks.

I concede, however, that the devil is in the detail and, more importantly, the delivery. We now have to deliver the things we said we would. I refer to the mortgage issue mentioned by a number of Senators. We have set very clear targets for what has to be achieved and must deliver on this and ensure it is done in terms of the Central Bank's dialogue with the individual banks concerned. Equally, when it comes to lending into the real economy, a commitment was given by the pillar banks to lend over a three year period more than €21 billion - as it were, a kind of Irish quantative easing. The banks were, effectively, stuffed with cash in order that they would lend into the real economy. It is a case of the chicken and the egg. In circumstances where people cannot get credit and appeal to the Credit Review Office the decisions in 60% of cases are overturned, which proves the system is working. Unless we are talking about a positive future and mindful of the mistakes we made in the past, we will not get the country to a better place and will certainly not get the banks to a better place.

There was a comment on the fact that Ulster Bank intended to close 41 branches. That is an unfortunate indication of where modern retail banking is going. It does not see its role to have large branch networks up and down the country. The advances made in Internet and online banking have meant banks can do things differently and deleverage their own systems, reduce their cost base and, in consequence, focus on their core business. The same applies to Ulster Bank, as it does to other banks, notwithstanding the difficulties this causes in communities, which I fully accept.

What we are getting at in both amendments is summed up in an awful modern phrase which I will use because it probably explains what I am trying to say - bespoke banking. I do not believe the banks that will come in, as Senator John Gilroy remarked, are going to be the large-scale, high street banks which will establish networks willy-nilly around the country. However, specific banks will come in that have specific market interests. For example, one of the things in which I am most interested is Islamic banking, which offers extraordinary opportunities. The Islamic banking model has been hugely successful. It deals with the issue of prudential risk, invests long term and does not go for the speculative property bubble, in the way many of our commercial banks did. There is now an opportunity for an Islamic bank to come to Ireland. There is also aviation finance - a big issue in Senator Darragh O'Brien's constituency - which is hugely important business for Ireland. We are a world leader in this regard and there is no reason we cannot make an opportunity for third country banks through the use of aviation finance. Third country banks could have the opportunity, by way of a bilateral arrangement, to come and use the existing network of banks and branches. That is provided for. Do I see this immediately as a new opportunity? I do not, but by the provision of these sections there is now the opportunity, if banks want to invest in this country. That has happened as a result of observations made in this House, on which I congratulate Senators. Senators might be feeling unloved in the current environment with Madame la Guillotine hanging around the place.