Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I thank the witnesses for their helpful presentations. I noted what they said in regard to the bail-in and the potential participation of depositors at whatever level. Mr. Carrigan indicated that it would be an unlikely development in light of all that has happened with recapitalisation and the strong tier 1 capital base in our institutions. However, we are none the less scrutinising a directive aimed at dealing with such eventualities if Armageddon comes or a catastrophic event occurs either here or in another jurisdiction. I ask him to bear with me on that and work it through.

He noted that the negotiations are ongoing and, as such, nobody is in a position to dictate how depositors might contribute. As my question is somewhat political I do not know how he will respond. In recent weeks Ministers have given categorical assurances that the way in which events were resolved in Cyprus will never be contemplated by this Government. They stated that it will not and cannot happen. Is Mr. Carrigan surprised that Ministers would take such a position given that the negotiations have not reached a conclusion? It is at least possible that the finalised directive or some future legislative proposal resulting from it could require a bail-in of depositors above or below a certain threshold as part of a harmonised set of tools. Would Mr. Carrigan say it is unwise for anyone to rule out something that has not been finalised or agreed?