Jim Daly (Cork South West, Fine Gael) | Oireachtas source

In the interests of expediency, I will conclude my questions before reverting to Mr. Smyth.

Broadly, what is the cumulative effect of such payments? My guess is that it amounts to approximately €1 billion between the two main institutions. What else is there in addition to this? I presume Professor McHale is also referring to the reliance of the State on that income of more than €1 billion, which is dangerous because I presume it is not sustainable in the long term. I seek elaboration on this point.

In addition, I am aware that some banks are now lending outside the guarantee, for which they will give someone a marginally higher rate. What is the council's view on the long-term necessity for the bank guarantee? Can it be got rid of in the shorter term, that is, within two to three years or will it be in place for much longer? Is there a counter-productive element associated with the cost of the guarantee? While I acknowledge that it is necessary in some way, we are trying to get the banks back to profitability and if the first cost Bank of Ireland and AIB must meet each year is the aforementioned €500 million, it will hamper their return to profitability.

Has the council viewed or analysed the corporation tax rate or is it a subject it would be willing to examine? The current Administration entered office 18 months ago with a resolute commitment not to interfere with the corporation tax rate. However, given the times we are in, everything and nothing can be agreed; one should be open to everything. Has the council conducted an analysis of the corporation tax rate? Do council members have views on whether it would be inherently dangerous to examine it? Alternatively, in their professional opinion, is it a possibility that could be countenanced?