Michael Noonan (Limerick East, Fine Gael)

We will come to that. The senior debt holders were next in line after subordinated debt holders and deposit holders were to take the last hit. Democracies, in their prudence, have introduced statutory schemes to protect deposit holders. The scheme in place here used to protect deposits of up to €20,000 but the figure was increased to €100,000 during the Minister's time in office, which was a very good idea. This was the hierarchy of debt.

The Minister for Finance is aware, as is the Minister of State, Deputy Roche, that the protocols and regulations governing these matters were negotiated in what is known as the Basel agreement. A new Basel agreement is being negotiated by all the European states. A draft protocol of this new agreement which can be found on the Internet adopts precisely the same policy. Under this policy, the hierarchy of risk is as I have outlined in the event of a bank in difficulty being wound down.

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