Brian Lenihan Jnr (Dublin West, Fianna Fail)

I agree with Deputy Bruton. We must have a partnership approach with the banks, the Central Bank and the Financial Regulator, the last two of which have statutory responsibilities in this area. The Deputy asked about the timing of the announcement on deposits but I have kept this matter under review since my appointment as Minister for Finance. It is very difficult to determine an appropriate date to make such an announcement but the close of banking business last weekend gave me an adequate opportunity to do so.

The Deputy asked questions on the stability of the financial system and I can confirm that the relevant emergency and contingency planning has taken place within my Department. In the unlikely event of any contingency being necessary my Department and I will be in a position to advise the Government on the appropriate steps to be taken. Deputy Bruton will be aware that the Central Bank and the Financial Regulator have distinct statutory responsibilities and the Joint Committee on Finance and the Public Service questioned the Governor of the Central Bank on the banking system during the course of the summer. Both the Governor of the Central Bank and the Financial Regulator are in regular discussion with my Department about the stability of the financial sector and maintain close surveillance and constant monitoring of it.

Liquidity, the availability of funds in banks and the extent to which the absence of those funds can impact on the economy are important matters which are raised periodically by Ministers for Finance with the relevant financial institutions. I do not want to go into details of the discussions I have held with those institutions but I share Deputy Bruton's concern that such issues should be high on the list of priorities at those meetings.

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