Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I do not propose to accept either of the amendments put forward by Deputy Doherty. The first amendment provides for a report to be laid before the Houses outlining how an application for retroactive recapitalisation of a financial institution will be processed. Article 14(2) of the draft guidelines on financial assistance for the direct recapitalisation of institutions sets out the operational basis for an application. The detailed modalities for any retroactive recapitalisation shall be established in the relevant decision by the ESM board of governors. Article 14(1) states that such decisions shall be made on a case-by-case basis so it will not be possible to provide such a report in advance of an application. Further, the method of processing will be decided by the ESM board of governors and it would not be possible for me, as Minister for Finance, to ascertain that in advance.

The second amendment seeks to oblige me to make an application for retroactive recapitalisation in November 2014 but it will not be possible to make an application while the instrument is not in place. It is not in place yet but we expect it will be in November. The decision on an application subsequent to that is a matter of timing. I do not think it should be rushed and in that context it is not appropriate to tie my hands as this amendment seeks. As I have stated on a number of occasions recently, we will consider all options in respect of the State's holdings in banks and the determining factor will be which option achieves maximum return for the taxpayer.