Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

We no longer think like that around here.

Potentially the ESM may recapitalise the banks retrospectively. Representatives of AIB and Bank of Ireland have suggested to the committee that might not be necessary and they could approach private institutions to recapitalise themselves. On the banks' cost of funds, the blended rate filters down to the interest rate people pay for their mortgages, day-to-day spending, etc. At the moment we have extensive access to the European Central Bank as a source of funding. If we went towards the ESM, would we have a higher level? If we went to private investors would we secure more money from the international markets at a higher rate? Therefore, would it filter down to higher interest rates for people ultimately having a negative impact on the economy? I know that is somewhat complex, but I want to be clear on it when we are voting on how to resolve the capitalisation of the banks.